We are all aware of the recent decision by citizens of the United Kingdom to permanently leave the European Union. The decision sent shockwaves around the globe and surprised politicians, analysts, and even Britons themselves. No one was expecting the UK to truly leave the EU after so many years of serving as a key member.
While the complete repercussions have yet to be seen, one immediate effect was the drop in value of the UK’s currency. If you are an XTrade Europe trader, then you should consider the events surrounding the Brexit as an opportunity to make a profit off the change in the pound’s value.
What Is Brexit?
The Brexit decision was a referendum held in June of this year. According to the referendum results, 51.9% of the United Kingdom’s citizens decided to leave the EU permanently, completely separating the island nation from the continent’s economic bloc. While the decision to leave the EU barely won the vote, the impact of the decision was seen immediately on financial markets.
Since the referendum was held, the value of the British pound has been down around 17%. This is a huge downturn in the pound’s value and for XTrade Europe traders, there lies a ripe opportunity to make some profit.
“The world believes that the U.K. is going to be poorer in the future, and find it more expensive to trade,” Paul Johnson, director of the Institute for Fiscal Studies, told the New York Times in a recent article. “Essentially, the world is betting against the pound.”
Opportunities For XTrade Europe Traders
If you actively trade on the forex markets, then the Brexit vote has provided some great opportunities for trading in the past months. If you trade with XTrade Europe, or any other broker for that matter, then you should take advantage of the currency’s dips and rises to make some intelligent trades that could bring in profit.
Let’s face it, each trader has his or her own strategy. Yet, you don’t have to be a rocket scientist to understand that trading against British sterling can lead to immense profits. The key is to pay attention to the currency’s current value and to stay aware of how it is likely to change over the short and long term.
Just be aware that in the forex market, things could change quickly. Don’t count on the Brexit trend to be relevant for too long. Similarly, a quality trade today could be a misfortunate trade tomorrow. That’s why it is important to constantly monitor current events and determine how they will affect the British pound and other currencies that are traded on XTrade Europe.
All in all, the Brexit vote could be a once in a lifetime opportunity for traders that know how to capitalise on these sort of currency changes. Just remember to trade intelligently and only make trades after becoming informed and educated on the market and current state of affairs. And don’t forget to keep your eyes open: you never know when the next Brexit opportunity will come knocking on your door.