Barclays stopped accepting clients' currency stop-loss orders on Thursday in an effort to limit its exposure to losses that could follow the results of a referendum on the U.K.'s membership in the European Union, according to a Reuters report. A stop-loss order is a crucial part of currency trading that allows a broker to close out a client's position if its value falls below a predetermined level. The move was meant to guard clients and the bank from booking large losses if there are periods where buyers cannot be found for the pound or other currencies as the referendum results flow in, Reuters reported. A Barclays representative didn't respond to a request for comment. The British pound bought $1.4789 in recent trade after touching a six-month high of $1.4816 earlier in the session. Many market strategists have said that the pound could plummet against its rivals if voters elect to leave the EU.
Copyright © 2016 MarketWatch, Inc.
Continue Reading Below