There have been enormous moves on global markets as the results from the British referendum on its future in the EU continue to stream in, and the Leave vote builds a lead.
Markets had been positioned for a win for Remain.
Michael McCarthy, chief markets strategist at CMC Markets in Sydney and a veteran trader, said: “In 33 years in the market this is a rare day, comparable to the 87 crash, the Soros stoush with the BoE and the tech wreck. Not as comparable to the GFC, with its extended timeframe. While investors are largely sidelined, traders’ moods range from gleeful to jubilant. Any day when sterling swings through 10 big figures is notable, with some traders referring to the session as ‘unicorn’.”
As for the fact that some people will be getting run over in this, McCarthy said the vote was a “well-flagged, calendar based event”.
“Brokers lifted margin requirements, warnings were issued. Seeing plenty of stop outs, and aggressive risk management, but one good trade covers a lot of cuts in these market conditions. Inexperienced traders most vulnerable, but generally a good day for traders.”
Of course, it’s not good for people with their money tied up in shares. “Investors watching the share market index gyrate through a 186 point trading range may be less comfortable,” McCarthy said.
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