27 June, AtoZForex – A new trading week has commenced, yet the aftershock of the UK EU referendum results is still felt in the markets. Having the Britons to support the Brexit, the GBP recorded its worst performance since the cable crash of the Black Wednesday. As the market opened today after a tumultuous weekend, the post Brexit environment remains chaotic from the market movement perspective. Resultantly, this has urged traders around the world to question their brokers. Therefore, we have reached out to AtoZ approved Forex broker Orbex for their opinion.
In an interview with Mohammad Said, Chief Dealer and Kenny Simon, Senior Market Analyst of Orbex Ltd, more clarity has been provided upon Post Brexit Orbex operations.
Q1: Mohammad, what was the biggest achievement for Orbex in the 48 hours after the EU referendum results?
– The biggest achievement of all is protecting our clients from the hectic market movement and protecting our company as brokers are also subject to different kinds of risks including Market Risk.
Q2: Which risk management precaution did Orbex take?
– We increased the required margin on EUR & GBP Crosses to 1:25 as of 16th June 2016 and fixed the leverage on all other instruments to 1:100 in order to prevent uninformed speculations.
Q3: How did Orbex platform react as the Brexit news hit the market? Did you face any lack of liquidity?
– Our platform operated in perfect order during Brexit news, and we had enough liquidity to execute all trades as they come.
Q4: Are you able to share any insights about your clients’ operations? Can you share the average lot size entered for GBPUSD and average profit loss for this pair?
– Average lot size was 0.49 lots.
Q5: What are the most traded instruments for Orbex at the moment?
– The most traded instruments during Brexit were GBP and its crosses.
Q6: Which Brexit risk aversion action will Orbex take for this week?
– Same measures will be applied until the market absorbs the shock and settles.
Q7: Kenny, what are your expectations for the new trading week? What will happen to GBP?
– Right after the result itself, EU will keep conveying stringent terms and conditions on UK, particularly in areas pertaining to Immigration changes, migration of UK residents to and from the EU, Trade tariffs…etc. as a means to indirectly communicate to the other countries thinking of leaving the EU of the consequences of it and how tough will it be. The current sentiment for the UK’s economy & politics is termed as being in ‘prolonged uncertainty. This will continuously pressure the EU leaders, including European Investors to a large extend because most pending projects in various industries are put to halt with the UK. Post Brexit starting from now, more pressure to the Pound expected as Moody the credit rating agency has also cut UK’s rating to negative which will drive more uncertainty and negative sentiments for the pound in the new trading week.
Q8: Do you have any recommendations for traders?
– We recommend traders to remain cautious of uncalculated risks, every crisis carries a lot of underlying opportunities, but in pursuit of market opportunities, a trader must be always armed with Capital, Knowledge, Vision & clear targets, and Discipline.
Thank you for your time and input Mohammad Said and Kenny Simon. 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, Orbex 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 Orbex? Don’t hesitate to post the question in the comment section below.