I got an email from OANDA yesterday warning me they would be lowering leverage caps during the brexit event on thursday in anticipation of market volatility, and asked me to consider how I would prepare for the event.
I’m currently in profit on a GBP/USD short by about 90 pips, and I’m just not sure what to do. Should I just take profit and go into tomorrow flat? Or should I move my stop to lock in a little bit of profit and just see what happens? Or I suppose I could sell half the position and let the rest ride.
Normally I try to ignore news, but having been warned by the broker I feel like I should prepare somehow.
Any GBP pair represents high risk of unexpected direction right now as the Brexit process reaches what might be a climax. GBP/USD is the most sensitive.
Even if you are short GBP and events cause GBP to drop further the widened spread could still take you out.
Posts like the one quoted above illustrate the need for new members to pass a basic qualification test prior to posting in this forum. The test should determine minimum acceptable IQ, and rudimentary language proficiency.
Probably there should be a fee for taking the test. I suggest a fee of 10 brexits — you know, that new currency which most of the people don’t know about.
Referendums have been seriously devalued… Seems people are selling their Referendums and buying up Irish Backstops as a safe haven, though they take up a lot of space in your pocket…
My firm’s T&C’s say they can do this at any time without advance notice but that they will always make a reasonable effort to provide such information if they have done this.
But this is a process leading towards a deal for the UK to leave the EU, or a decision that we will leave without a deal. Leverage may change dramatically when a decision is announced or rumoured or even looks likely. Don’t assume everything will be stable until 2300 31/10.
