Brexit Overview for a Forex Trader

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June 23: Here we go!

Forex markets are really walking a fine line here.

The aggregated GBP/USD RAW ECN spreads (no, not standard) at Vantage FX have widened out between 4 and 5 pips, and it’s only midnight in the UK!

Everything Brexit-related was probably already said before. Do a Brexit search through the Vantage FX News Centre, but as we hit voting day there is only one thing that should be on your mind as traders:

RISK MANAGEMENT!

Remember that Vantage FX made the following temporary change in margin requirements and made a selection of currency pairs and indices close only.

Don’t get tempted by making rash trading calls on a day you know is going to feature whipsawing price action and low liquidity. As a trader, you are primarily a risk manager, NOT a punter. Don’t throw your account away.

Now I’ve got that little spiel out of the way, the following table that we Tweeted this morning outlines the key referendum times that traders should make a note of if they are staying involved:

Brexit schedule

Furthermore, here are the Betfair odds for both Bremain and Brexit:

Brexit betting

With there being so many different polls, all giving widely variable results, my eyes are on only the betting exchanges for clues as to which way the vote might swing.

You can see that the ‘remain’ vote has come right into a tight $1.30 favourite, while the price of leave has blown out to $4.10. While the price of a favourite who doesn’t win is meaningless, it does give you a few hints around the human psych of voters as voters start heading to the polls.

Next up we have the key Forex charts that are set to get wild:

GBP/USD daily

GBP/USD daily

EUR/USD daily

EUR/USD daily

EUR/GBP daily

EUR/GBP daily

Cable and Fiber are gaining some momentum as the remain vote heads into the polls as a clear favourite. But as we’ve outlines above, this could change in a heartbeat and whipsawing is expected no matter the outcome.

This Thursday

There’s only one point of note on the economic calendar today… and it’s certainly not the US unemployment claims!

Vantage FX Brexit

USD Unemployment Claims

Stay safe and for the sake of your long term trading account, don’t do anything stupid today!

Make the switch to true ECN Forex Broker Vantage FX today!

This is a guest post originally appeared on Vantage FX blog. Reposted with permission.

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