Brexit: What and how
Maybe not many of you know what “Brexit” is. But if you remember the shocks that hit Greece some time ago, maybe remember also the term “Grexit”. Grexit was the term used to describe the potential for Greek exit (Greece in English) from the European Union. Then came the Grexit acronym rooted in “Greece Exit”.
Well, this time it turned out that a similar discourse appeared in the UK and was given the term “Brexit” aka “British Exit”. On June 23, 2016 a referendum will be held in the UK to determine whether or not Britain will quit the EU membership. Under the law in force in the UK, the British Prime Minister, David Cameron, had to announce it 16 weeks before the referendum was held. Those who have the right to vote in the referendum are British, Irish or commonwealth citizens who are 18 years old. Also citizens who live abroad but not more than 15 years.
What Can Happen?
What will happen if the UK really leaves the European Union?
Hypothetically, the definition of Brexit is still very shallow. Some critics in the European Union say Britain has the potential to leave the bloc which has been the single market in the region.
There are some circles that consider the discourse of the departure of the British from the European Union is not a strange idea. Although, the UK can follow in the footsteps of Norway who pay a kind of ” fee ” to the European Union in order to stay connected to the market. According to them it is dangerous for the British economy if it leaves the European Union, at least for three quarters after leaving the European Union.
Currently the UK is still a member of the European Union. According to Prime Minister David Cameron, Britain is in the process of negotiating to leave the European Union for seven years. At the end of the process, it is not certain that British businesses will have full access to the market and will surely sacrifice employment.
Why do you have to leave?
British membership in the European Union is considered a barrier for Britain to change regulations. The Euro itself is accused of being the cause of economic suffering for poor people in Europe. In essence, some EU policy circles have become a source of instability.
The Conservative British MP , John Redwood, said that the referendum was not only about trade and business regulation but rather democracy;about independence and independence.
According to the Redwoods, even the UK will benefit from withdrawing from the European Union. According to him, the budget deficit and the current account deficit will decrease by 20 percent. The UK will also be able to make its own laws to control immigration and border policy, and again exist in international institutions such as the WTO.
Anticipate By Trading Organizers
Traders are apparently not the only ones preparing themselves for the Brexit referendum. Organizers of forex trading at home and abroad also prepare themselves by making several adjustments.
Reflecting on the experience when the Swiss National Bank surprisingly removed the Swiss franc’s exchange rate against the euro, when many victims were caused by sudden wild movements, brokers and traders took anticipatory steps.
Among the anticipation steps taken is adjusting the margin requirements for currency pairs related to GBP and EUR, for example EUR / USD, GBP / USD, EUR / GBP, EUR / JPY and so on. Anyway all pairs that include EUR or GBP.
Margin requirements for opening a position in a pair involving both currencies are enlarged. In Indonesia alone, there is a discourse multiplying the margin requirements for a pair that involves the two currencies tripling. So if for example 1 lot only requires a $ 1,000 margin requirement, it will be $ 3,000. Included also for XAU / USD. The aim is to maintain the resilience of customer funds so that equity does not become minus because an open position is likely to be contrary to the direction of a price surge that can be sudden and sharp.
You just have to wait for confirmation from the trade organizer regarding this matter. Meanwhile if you intend to look for opportunities from the event , make sure your capital is sufficient. If necessary, add to strengthen capital.