28 June, AtoZForex – Markets have not yet recovered from the vote for Brexit. As such, last week saw the worse GBP performance since the cable crash of the Black Wednesday. Therefore, traders are concerned about their brokers. To alleviate the worries, AtoZForex has reached out to Darwinex for their opinion.
In the interview with Ignacio more information has been provided upon Post Brexit Darwinex operations.
Q1: What was the biggest achievement for Darwinex in the 48 hours after the EU referendum results?
– Our biggest achievement was that our customer base did not lose money due to the Brexit (in fact, our customers made money thanks to trading the referendum!).
Q2: Which risk management precaution did Darwinex take?
– We increased our margin requirements, especially in GBP pairs & European indices. Also, we applied a correction factor to our investor base, so they replicated volatile trades in smaller trade sizes.
Q3: How did Darwinex platform react as the Brexit news hit the market? Did you face any lack of liquidity?
– Liquidity was low, of course, especially during the rollover on Thursday when the first results were published. As a pure STP broker, we depend entirely on the liquidity provided by our LPs.
Q4: Are you able to share any insights about your clients’ operations? Can you share the average lot size entered for GBPUSD and the average profit loss for this pair?
– There were all sizes, to be honest. The good news is that most of our customers were short the GBPUSD and benefited from the Brexit results.
Q5: What are the most traded instruments for Darwinex at the moment?
– Pretty much everything. People are still cautious with the GBP, but things are slowly getting back to normal.
Q6: Which Brexit risk aversion action will Darwinex take for this week?
– We are monitoring market volatility indicators and will gradually reduce our trading conditions to pre-Brexit conditions in terms of margin levels & leverage in the coming days / weeks as the dust settles.
Q7: What are your expectations for the new trading week?
– We expect things to go back to normal, LPs are already reducing their margins, which is good news.
Q8: Do you have any recommendations for traders?
– I would recommend them to pick their broker carefully and avoid market makers.
Thank you for your time and input Ignacio. We are happy to deliver the news about brokers’ performance after the recent historic trading day, where AtoZForex followers have been able to stay on top of the market news.
Through this interview, Darwinex has been able to provide the public more clarity about their operations, performance and risk management activities in the last 48 hours. If you are curious about the current situation of the other brokers and their opinion of the current market, please check AtoZForex’s list of Forex Brokers Post Brexit operations and risk management activities.
Do you have more questions for Darwinex? Don’t hesitate to post the question in the comment section below.