wiseinvest posted: Do you guys think it will be wise to leave a short eur/nzd trade with 400+ pips locked in through this or rather close it?
The general information I am getting is that the euro will remain bearish no matter the outcome, what do you think? I don't really want to close this position, but I will rather be safe than sorry..
I understand that there is a great chance that there will be no liquidity and stops won't be honored, but I am willing to leave 400 pips on the table if it can be made to 800 or more and will be in front of my terminal to intervene if at all possible when the referendum takes place in a few hours or so..
If I had guaranteed stops through my broker I would lock in the 400 pips and trail (if my aim is to squeeze out more profit) If I had no guaranteed stops I would close it (if the size of the order is significant - As Magixs says, else I would put in a manual stop and see how far the rabbit hole goes).
So despite receiving a response from XM.com in a query of margin / leverage changes:
'We thank you for choosing XM as your trusted broker. Regarding your concern I would like to kindly inform you that kinldy we will notify all our client via email regarding this issue.'
No email was ever received, and margin requirements were changed on 'unknown' pairs (my margin requirement has doubled overall) 10 hours ago. Fortunately I had the foresight to alter my EA last week for any eventuality.
XM has lost a point in my good books for not informing it's clients on it's intent to alter margins, even confirming via support channels that they would... and didn't... Keeping my eye on you XM!, strike 1.
The referendum? voting till 10pm UK time. Then counting, probably be done by 5am UK time Friday morning. Impact on Forex? months (2+), immediate shock on outcome, aftershocks as UK and EU adjust, re/negotiate terms, import/export considerations, etc.
some 1800 pips from top to bottom, I think that's what most analysts were expecting, the results were coming in steady, so it wasn't an all at once moment.. Many think it will continue down to 1.25 in the coming weeks.
Stay safe, it's still clearing 50-100 pips in a few minutes.