Leverate had 277% spike in trading activity following Brexit, advises brokers to keep risk management in mind
Whilst many brokers using Leverate’s solution experienced an increase in volume, risk management is still a very important factor.
The political landmark that took place last week has now passed, and the result of the British population’s referendum on the nation’s membership of the European Union has now become public knowledge, with the United Kingdom set to leave the European Union.
In the advent of the referendum, many brokerages prepared for potentially high market volatility by taking prudent measures including raising margins on GBP pairs and lowering leverage.
Preparation in order to create a smooth trading environment and ensure that traders are not exposed to negative balances is, however, not restricted solely to brokerages themselves, and extends in some cases to technology providers which deliver and manage end to end solutions for FX brokerages.
One particular example is Leverate, which provides liquidity and risk management alongside its technology solutions, and as an integral component of its provision to brokerages.
The company has confirmed that it managed the period immediately following the Brexit vote with no effect on itself or its customers, however the firm continues to advise its customers to maintain risk management policies as there is potentially more volatility likely to materialize over the next few days.
Leverate believes that the volatility that ensued following the revealing of the result of the referendum created a period of high trading activity, with the firm recording some 277% incease in volume during the few hours following the announcement of a Brexit.