24 June, AtoZForex – The UK EU referendum result has shocked the global markets, as the British residents have voted in favor for a Brexit. The unforeseen majority support for a Brexit, inflicted to the worst GBP performance since the cable crash of Black Wednesday. Aside, the post Brexit environment is still in chaos from the market movement perspective. Hence, many traders have posed questions about their brokers. Therefore, AtoZForex has reached out to Magna Trust Securities for their opinion.
In an interview with George Pavlopoulos, the Vice President of Magna Trust Securities, more clarity has been provided upon Post Brexit Magna Trust Securities operations.
Q1: What was the biggest achievement for Magna Trust Securities for the last 48 hours?
- Well, we do really consider that our biggest achievement was our outstandingly accurate prediction as depicted through your website yesterday by this time, alongside with our excellent risk management systems. We would not like to be the arrogant ones, neither to draw the attention as the ‘posh money managers’. But we feel really glad that we might be among the rare ones, if any, who gave so successfully trade setups regarding yesterday's referendum.
Most of investment houses, suggested (wisely) their clientele to refrain from trading amid a high volatility event like the ‘Brexit’ referendum. Others’ stated clearly that if the vote was a ‘YES’, the pound would soar amid the board, while if the vote was a ‘NO’, the pound would tumble. We gave a strictly different trade guideline as you can easily check through your website. At 19.35, on Thursday, Vasilis Tsaprounis, Managing Director at Magna-Trust Securities commented “We do strongly believe that irrespective the result, the cross will lose it’s strength moving downwards. The cable has moved drastically upwards last week and a lot of take profits (sell orders) will be triggered if the outcome is positive. Therefore, since liquidity will be pretty much dry amid exit polls, we suggest either being short or waiting on the fence to see cross moving downwards to 1.4000 area and become a ‘buyer’ there.”
Q2: Which risk management precaution did Magna Trust Securities take?
- We changed margin requirements, from 1:100 to 1:50 when June kicked off, while lowered the margin requirements even further in the last of couple days to 1:25.
In that way, we did offer strong protection to our clientele. Since, we are strictly ‘A Book’ (Market Providers) our concept is anyway, anyhow entirely different from Market Makers, therefore we try to catch up with any safest method in order our clients don’t be in any kind of danger. We take much pride in being established in Greece in harsh times, being regulated and supervised by one of the most strict and well established Capital Market Authorities.
Q3: How did Magna Trust Securities platform react as the Brexit news hit the market? Did you face any lack of liquidity?
- No problem at all. We take liquidity from 3 top-tier LP’s and we witnessed no problem at all.
Q4 Are you able to share any insights about your clients operations? Can you share average lot size entered for GBPUSD and average profit loss for this pair?
- On average we gained roughly 600 pips. The average lot size was 0.5 lot and average profit was (+3k).
Q5: What is the most traded instrument for Magna Trust Securities at the moment?
- By far, cable and gold.
Q6: Which Brexit risk aversion action will Magna Trust Securities take for this weekend?
- We close all the positions. We do not leave open no position, regardless if it is a small or a big position.
Q7: What are your expectations for Monday? How will the EU leaders react to Brexit over the weekend?
- Volatility came to stay for a long time period; that’s why we maintain a ‘wait and see’ stance, till we see that things become more stable. After all, the Stoxx 50 tumbled to its weakest point since mid-February, while everything is still pretty much fragile.
Q8: Do you have any recommendations for traders?
- Consider to adopt a wait and see stance in trading. Things have changed substantially; if UK, a country which has had anyhow, anyway its own ‘’monetary policy’’, ‘Citi’, a lot of ‘special rules’ after 2 years negotiations of Cameron with EU prior to the referendum, decided to leave EU what will happen to struggling economies like Spain, Italy and France? Thinking before acting, ‘sitting on the fence’ seems wiser ‘in the time being’.
Thank you for your time and input George Pavlopoulos. We are happy to deliver the news about brokers' performance on this historic trading day where AtoZForex followers have been able to stay on top of the market news.
Through this interview, Magna Trust Securities 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 Magna Trust Securities? Don't hesitate to post the question in the comment section below.