UK Referendum

On Thursday, June 23^rd the United Kingdom will hold an unprecedented referendum to vote on their membership status within the European Union. What does this mean? Britain is voting on whether or not they want to be a part of the EU. There are a number of issues causing the vote - not the least of which is immigration.

According to CNBC, “Polls will close at 10 p.m. London-time (5 p.m. Eastern), and then the official returns are expected to start coming in around 1 a.m. Friday local time (8 p.m. Eastern). About 50 percent of the returns will be counted within the next three hours, according to most expectations.”

Whatever the causes, Britain’s exit (i.e. “Brexit”) will undoubtedly have serious ramifications on a social, political and economic level.

Here are a few things to keep in mind:

-Some markets may experience significant volatility no matter the result of the referendum. We encourage you to manage your risk accordingly.

-Clearing firms may increase the margin requirements on futures markets likely to be affected by the vote. This could lead to rejected orders and margin calls. Contact your BROKER if you have questions.

-Managed Futures and automated trading systems are uniquely positioned to take advantage of the opportunity that comes with increased volatility. Note that increased market volatility is also directly related to increased risk.

Here are three articles to read about the “Brexit” further:

MarketWatch: http://www.marketwatch.com/story/the-brexit-vote-everything-you-need-to-know-about-the-referendum-2016-06-07

BBC: http://www.bbc.com/news/uk-politics-32810887

The Economist: http://www.economist.com/news/briefing/21693568-david-cameron-will-struggle-win-referendum-britains-eu-membership-if-he-loses

Post by Colson Hauser, Broker with Foremost Capital Management

The views in this report reflect solely those of the author(s) and not necessarily those of Foremost Trading, its DBAs, or its Principals and brokers. This report and the information herein should not be considered investment advice or the results of actual market experience. Futures trading, like all investments, carry certain risks and may not be appropriate for all investors. All trading should be done with risk capital. Past performance is not necessarily indicative of futures results.