We’re six weeks away from Britain’s referendum on European Union (EU) membership, and the race appears closer than ever. Should the United Kingdom stay in the European Union or go its separate way? British voters will have the opportunity to express their views on June 23 in what has been described as the most crucial referendum in modern European history.

For traders, Brexit carries very real consequences. While the extent of those consequences aren’t fully known yet, the global financial markets will be on high alert in the weeks and days leading up to the vote. With both the ‘Remain’ and ‘Leave’ camps in full campaign mode, it’s becoming more difficult to separate fact from fiction. In this article we cut through the misinformation to provide traders with an easy-to-follow Q&A guide for all things Brexit.

How was the referendum established?

The Conservative party’s election victory in 2015 activated a promise to hold a referendum on EU membership by the end of 2017. Under pressure from Eurosceptic members of his own party and faced with an increasingly popular Ukip, British Prime Minister David Cameron in January 2013 said he would present British voters with an In/Out option on EU membership under one condition: they re-elect him in 2015. That promise eventually formed an important part of the Conservatives’ election platform.

The Conservatives swept to power in 2015 with their first outright majority since 1992. The extent of the tory victory surprised political analysts, who were expecting a more contested outcome.[1]

What will the referendum ask?

On June 23, voters will be asked the following question:

Should the UK remain a member of the EU or leave the EU?

Who can vote in the referendum?

In order to be considered eligible to vote in the upcoming referendum on EU membership, voters must be British citizens living in the UK, British citizens living overseas for less than 15 years, citizens of Ireland, Malta and Cyprus living in the UK, commonwealth citizens living in the UK and commonwealth citizens living in Gibraltar. In this sense, the criteria for voting in the referendum is the same as the one for voting in the general election.[2]

What are the key arguments in favour of Brexit?

Those in favour of Brexit cite numerous advantages to quitting the EU. Most of these advantages are related to the issues of sovereignty, regulations, nationalism, budgetary implications, economics and trade. They argue that, by leaving the EU, Britain will gain independence on a number of important policy issues relating to immigration and security, save billions of pounds in membership costs and reduce regulatory hurdles on UK businesses imposed by Brussels.

What are the key arguments against Brexit?

Those in favour of remaining in the EU also cite numerous advantages of continued membership. Among the top reasons for staying include increased labour and capital and labour mobility, easier goods and services trade and numerous indirect benefits of remaining part of a unified Europe,[3] not to mention avoiding the unknown consequences of quitting the EU.