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1280px-Flag_of_the_United_Kingdom UK Referendum

On Thursday, June 23rd 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:

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.

Post by Colson Hauser

Alternative Investment Specialist with Foremost Capital Management

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The Foremost Team (630) 485-2100 or (888) 818-0880

Disclaimer: Trading futures, options on futures, retail off-exchange foreign currency transactions (“Forex”), investing in managed futures and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. This website contains information obtained from sources believed to be reliable, but such information has not been independently verified and its accuracy is not guaranteed by Foremost Trading. Past performance is not necessarily indicative of future results. Any mention of performance in any context whether actual or hypothetical is no guarantee of future results. Foremost Trading became a registered ‘dba’ of RCM Alternatives in July of 2020. Please see full disclaimer here: https://www.rcmalternatives.com/disclaimer/