Once in a blue moon, a golden trading opportunity comes along, and those few people “in the know” get to take advantage of it. Gold in 2008, Bitcoin in 2017—those traders who bought and held, well, they made returns most traders only dream of. The difficulty with those two money-making rises was that there was very little to indicate what was about to happen. Keep reading to see why some traders might already be riding a leveraged Sell order as the biggest forecasted crash of the century ignites.
Set up a free trading account before the Brexit date
The once proud and influential United Kingdom joined the European community in 1973, despite nationalistic opposition fueled by the Labour Party. The Brits never fully committed to the union, which became very apparent when they rejected the euro currency in 1999 and stubbornly stuck to GBP.
Now, it seems, the UK is certain to become the first EU pillar to crumble, and the forecasts for this controversial exit are nothing short of catastrophic for the Brits and their allies.
The UK economy would suffer severely from a no-deal Brexit. The stand-alone nation will likely sink into a recession starting with a 10% loss in Gross Domestic Product (GDP), 25% — 35% fall in property prices, a predicted 10% rise in unemployment and a massive devaluation for GBP against USD and other currencies.
Almost 300 banks are already preparing for relocations outside of the UK, which will cause as high as 700,000 job losses. As the banks pull out, over GBP 800 billion in assets will leave the UK. In addition, a no-deal exit will prompt tariffs by the World Trade Organization (WTO) which will shatter the already tight import/export deals that the UK relies on heavily.
Brits wishing to work abroad will face limited options and stand in a long line behind the EU citizens who will continue to enjoy the fast track work visas and residency privileges. That’s the bad news. What’s the good news?
Current GBP prices haven’t been this weak since the 80s when a recession caused massive unemployment and a sharp rise in interest rates, among other things. A no-deal exit will likely cause negative sentiment, the likes of which the UK has never seen before.
Unlike for the XAU and BTC price moves that probably created countless millionaires, analysts and media are forecasting Brexit’s effects on GBP for all to see. For traders, he who dares wins—if the timing is right—but the optimum time to trade GBP could already be running out.
To maximize GBP opportunities, be an early bird and sign up now
Foreknowledge of a crash is every trader’s dream come true, but it’s not a guarantee of profits. A fall will be highly volatile and if you don’t have your account set up right, you might even see losses.
Setting leverage high will multiply Sell order gains if GBP does crash, but if you don’t have sufficient equity, an unexpected spike can stop out your orders before they move into a profitable range. Those traders with a higher trading budget will have a better chance of weathering the Brexit storm.
The bad news is coming thick and fast. The UK—for now—is a headless nation, GBP is already weak, and the strongest candidates for Prime Minister are very pro-Brexit. To make matters worse, the EU declined all efforts to reopen exit renegotiations, and the British parliament is still staunchly rejecting the original offer. In other words, unless the EU finds a way to compromise or the Brits cancel Brexit, the UK will be leaving the block without any agreement or benefits. Since there is nothing on the horizon that could revitalize GBP, a fall seems to be the most likely forecast, which means today could be the perfect time to start trading GBP Brexit.
Lots of people didn’t invest in gold or Bitcoin before the rises, and probably watched with regret the epic gains that early investors were enjoying. Many latecomers likely resigned themselves to the idea that it was just too late to buy in. If you want to be an early bird Brexit investor, right now is definitely the time to set up an account.
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