Investors would be better off watching Euro 2016 or doing some DIY than trading financial markets ahead of Britain's EU referendum vote, says the founder of trading platform Financial Spreads.
Adam Jepson says his firm has written to clients warning them of 'potentially extreme volatility' around the event which could wipe out trading accounts or even leave them in debt.
Risk-reward ratios for investors looking to trade the event are 'skewed towards results of plain nasty, hideous or disastrous', Jepson adds.
Risks exceed rewards
'Forget trading the referendum, the risk-reward ratio is probably not in your favour,' says Jepson.
'Just watch Euro 2016, take up a hobby, learn how to play Minecraft, take care of that errand you've been putting off for two months or finish the DIY you've been putting off for two years.
'There will be plenty of trading opportunities after the result has been announced and the markets have had a little time to calm down.'
Even investors who are able to forecast the referendum result accurately could lose money because volatility will prevent them from holding on to their positions.
'There seem to be a lot of people and adverts saying this is a great trading opportunity but the wild swings could be too much for all but the deepest of pockets,' adds Jepson.
'Even if you correctly predict the result of the referendum, and the broader market reaction, there will probably be a lot of volatility.
'The markets could easily spike against your trade and close your position before you can make a profit. That would be plain ugly.
'Of course, extreme volatility is a distinct possibility. If a markets moves against you it could gap to a completely different price level.
Options market moves
'That could leave you in the hideous scenario of wiping out all the funds in your trading account.
'Worse-still is a disastrous but plausible price move that leaves you in debt.
'At the moment, the markets feel like a lot of tightly coiled springs.
'Also, in the options markets it's realistic to assume that there are some very big positions that could be triggered and send markets spiking.'
There should be plenty of opportunities after the results are announced and markets have settled down, Jepson says. Investors at this stage may be better off sitting on their hands.