Financial Spreads Increases Capacity by 500% to Cope with EU Referendum Trading Volumes

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Financial Spreads Increases Capacity by 500% to Cope with EU Referendum Trading Volumes

Financial Spreads Increases Capacity by 500% to Cope with EU Referendum Trading Volumes

Financial Spreads, the UK spread trading and CFD company, is expecting heavy trading volumes once the results of the EU referendum start to be announced on Friday 24 June.

Planning for the increased trading levels include:
According to Adam Jepsen, the founder of Financial Spreads, "We have increased margins so that clients retain higher capital buffers on their accounts. Hopefully this means that fewer trades will be closed because a volatile market has temporarily moved against a client's positions.

"Likewise, we hope there will be fewer margin calls for clients, i.e. fewer requests for clients to deposit more money to cover their trades during the volatile conditions."

Trading capacity should not be a problem according to Adam Jepsen, "Normally, the busiest trading day of the month is the Friday that the US Nonfarm Payrolls are released. Even then, we rarely hit 50% of our trading capacity.

"For the referendum we have increased our capacity by 500%. In short, we could easily handle trading volumes that are eight times higher than the busiest day of the month and still have 20% spare capacity.

"Having said that, an eight fold increase is unlikely. Margin (deposit) requirements for clients are 8-10 times higher than normal and that could dampen trading volumes."

Because the voting for the EU referendum closes at 10pm, Thursday 23 June, Adam Jepsen thinks that it may not be until 1-2am on Friday 24 June when volumes see a large increase.

"At the moment trading volumes are light, particularly with sterling based forex markets. I would like to think this is because clients are aware of the potential risks and/or they have heeded our warnings.

"The voting ends at 10pm on Thursday and so it may not be until 1-2am on Friday when there is a clearer indication of the result. At the point, volumes could start to spike".

Spread betting and CFD Trading are leveraged products which carry a high level of risk to your capital. Ensure spread betting and CFD trading meet your investment objectives and, if necessary, seek independent advice.


About Financial Spreads

Investors can use the FinancialSpreads.com website and mobile apps to trade more than 1,000 financial markets including the key US, UK and European stock markets.

Clients can also access a range of forex and commodities markets 24 hours a day from Sunday evening through to Friday evening.

Financial Spreads is a trading name of Clear Investor Ltd. which is an appointed representative of FINSA Europe Ltd., company no: 07073413. FINSA Europe Ltd. is authorised and regulated by the Financial Conduct Authority, registered number 525164.

Registered Address: 9th Floor, 30 Crown Place, London, EC2A 4ES, UK.



By Adam Jepsen, 23 June 2016


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+44 (0) 203 301 0483
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Also see:
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Spread betting & CFDs trading are complex instruments & come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading these products with this provider. You should consider whether you understand how these products work & whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice.