BinaryBook Insights: Scottish Vote on Independence

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BinaryBook.com analysts speculate on today’s historic vote where 4.29 million Scottish citizens are preparing to turn out for a referendum on independence from the United Kingdom. Recent polls suggest a slight majority in favour of a split from the UK, after 300 years of union.

BinaryBook.com analysts speculate on today’s historic vote where 4.29 million Scottish citizens are preparing to turn out for a referendum on independence from the United Kingdom. Recent polls suggest a slight majority in favour of a split from the UK, after 300 years of union. The markets have been jittery about the possibility that a YES vote would result, with the GBP taking strain against a basket of currencies of late. Further complications are likely to arise in respect of what currency Scotland would adopt. In the lead up to the vote on September 18th 2014, investors have been shorting Scottish stocks and placing put options on the GBP.

The ongoing uncertainty has created considerable volatility in the currency markets, which is now seeing record levels of activity among FX binary options traders. Leading trading experts believe the volatility will continue well beyond the current referendum. Tom Stark from BinaryBook had this to say: We are likely to see traders continue to adopt a bearish position vis-à-vis the British Pound, as calls for greater Scottish autonomy are now being met with a loosening of the reigns from London…We should also not lose sight of the calls for independence in Catalonia, Spain. These geopolitical issues are related to a degree.’

The GBP continued to lose ground against the USD; however investors remain cautiously optimistic that the YES vote will fail to reach a majority. Scotland is strategically placed with vast oil supplies that can certainly unsettle the economic prosperity of the United Kingdom. Many financial enterprises and leading banks have threatened to relocate back to England if Scotland votes in favour of independence. Two such banks include Lloyds and RBS. Presently, there is speculation driving market sentiment but the results of the referendum will be available on Friday 19th September.

Tom Stark is the CEO of BinaryBook, a leading binary options trading platform, based in London, UK with offices in Anguilla.

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Tom Stark
support(at)binarybook(dot)com
WSB Investment,
1A, Arcade House,
Temple Fortune,
London,
NW11 7TL,
UK.
‎+ 44 (20) 35198267
by http://www.binarybook.com

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