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26.05.2016

Important changes in trading conditions due to the upcoming European Union membership referendum on British withdrawal or BREXIT

 
Dear Customers!
 
Due to the upcoming EU referendum in the United Kingdom, it is widely expected that volatility in key financial markets would likely to rise, in particular foreign exchange markets for sterling (GBP). 
 
European Union membership referendum in the United Kingdom on British withdrawal or exit from the European Union (also known as the EU referendum or BREXIT) is scheduled to take a place in the United Kingdom and Gibraltar on June 23, 2016. 
 
As a result of market uncertainty and high volatility on the potential outcome of the EU referendum, Renesource Capital has taken the decision to increase margin requirements for Sterling (GBP) currency pairs, with the change being effective from the June 9, 2016.
 
Margin requirements will be increased to 8% for the following Sterling (GBP) pairs:
 
GBPUSD
EURGBP
GBPAUD
GBPCAD
GBPNZD
GBPJPY
GBPCHF
 
 
Margin requirements will be increased to 15% for the following Sterling (GBP) pairs:
 
GBPDKK
GBPNOK
GBPPLN
GBPSEK
GBPSGD
GBPZAR
 
Margin requirements will be reviewed on Monday June 27th 2016.
 
We strongly encourage all Clients to carefully consider the risks associated with trading around UK EU membership referendum dates. High volatility on Sterling (GBP) currency pairs may result in significant price gaps, widened spreads and slippages which may cause negative equity on client accounts (negative balance). It is strongly advised that Clients maintain appropriate and sufficient amount of margin on their trading accounts at all times. Volatility can trigger Margin Call and following Stop Out (Stop Loss) orders on your trading account. We recommend that Clients use Stop orders to limit risks.
 
Events mentioned above may create market conditions where orders are difficult to execute and execution price of the order received strongly differs from the selected or quoted price due to market movement. Renesource Capital does not offer a negative balance protection thereby Clients can lose more than they have invested (Agreement Ref. Num. A.I.22, D.I.8 and D.I.10).
 
 
We appreciate your understanding,
 
Kindest regards,
Renesource Capital

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.