MRG Forex margin requirements increase ahead UK vote

Jun 16, 2016

Due to possible increase in volatility, including possibilities of significant price gaps and periods of illiquidity ahead of the UK referendum on 23 June 2016, most of trading banks in the world are increasing the margins requirement on pound, euro pairs and gold.

The UK june 23 referendum is a significant market event whose outcome may lead to disorderly markets impacting pricing and liquidity of certain assets just like CHF flash crash event in January 2015.

In order to protect our beloved MRG Forex customers from volatility spikes due to the UK referendum, please be informed that our margin requirements for pounds, euro and gold are changing on open market 20 June 2016 (MT4 server time). Additional margin increases may be implemented should volatility continue to grow.

Please note that new margin requirements will affect both EXISTING and NEW positions. Make sure you have enough available margin / equity for the days leading up to and during the UK referendum.

We would also like to stress that Stop Loss orders are not guaranteed to be filled at your order level: Stop orders are converted to Market orders once triggered, and dislocations in available liquidity could result in significant slippage on Stop orders.

This new margin requirements are temporary and will remain in force until further notice.

TRADING INSTRUMENTS CURRENT MARGIN NEW MARGIN (UK REF)
Basic Premium & Sharia Basic Premium & Sharia
EURUSD $2 $50 $6 $150
EURAUD $2 $50 $6 $150
EURCAD $2 $50 $6 $150
EURGBP $2 $50 $6 $150
EURCHF $2 $50 $6 $150
EURNZD $2 $50 $6 $150
EURJPY $2 $50 $6 $150
GBPAUD $2 $50 $6 $150
GBPCAD $2 $50 $6 $150
GBPJPY $2 $50 $6 $150
GBPNZD $2 $50 $6 $150
GBPUSD $2 $50 $6 $150
XAUUSD $2 $50 $8 $200

It is important that you are aware of the potential risk of this upcoming event, and that you are both prepared and positioned properly as the date approaches. MRG Forex encourage you not to overleverage yourself, and to exercise care, diligence and discipline in your investment and trading.

Legal Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor.