On Thursday, Scotland will vote whether to break off from the United Kingdom. This vote can have a big impact on the market.
Over the past two weeks, the pound has taken a big fall against the U.S dollar. Scotland produce a lot of oil and one of the major concerns is how the U.K will divide its energy resources if they do break up.
Two of the biggest banks in Scotland, the Royal Bank of Scotland and Lloyds, said that if Scotland will gain independence they will move to England. Their shares have been under a lot of pressure recently.
In addition, it's still unclear whether Scotland's currency will stay the same or change.
How does this affect the market?
There's a chance that the press is making a big deal and not much will change.
However, some say that it's recommended to short the pound through Tuesday evening or Wednesday morning and then closing the shorts and placing buy orders a bit above where the pound is trading.
This will allow to capitalize on the pound's upward momentum if the "no" vote wins, and avoid being exposed to any drop in the unlikely scenario of a "yes" vote.
