- Be aware of High Volatility – US Election 2020
- What to expect from the markets?
- What to be careful through US Election 2020?
- Why Trade the U.S. Elections?
- Get SuperForex’s Bonuses for more
- Join CM Trading US Election Webinar
- Join SquaredFinancial’s Webinar “The US Election 2020”
Be aware of High Volatility – US Election 2020
We are heading on to the most important event of the past 4 years.
The US Election 2020 is the most unpredictable event since the SNB event in 2015 and we would like to emphasize on the volatility we may experience on the 3rd of November, the day of the election.
There is a high degree of uncertainty as to the outcome of the vote and all USD currency crosses are likely to experience significant volatility with increased risk of market gaps.
It is important that you have sufficient margin coverage and you are comfortable with the exposure on your account.
What to expect from the markets?
Since the beginning of this week, aggressive sales have been observed in US financial markets.
Major stock indices fell by more than 4.5%. The global economy is still under pressure due to the rapid spread of the COVID-19 pandemic and the uncertainty in the US presidential election.
Further correction of the major US stock indices is possible.
As you know, the US presidential election is only a few days away.
Sharp and unexpected price movements could happen around the time that election results are announced.
There might be changes in the trading conditions which may affect your trading experience.
During this period of market volatility, there may be changes to spreads, leverage, margin requirements or trading limits for Financial accounts.
Please make sure that you have sufficient funds to sustain your positions through potential changes in the market conditions.
All of these adjustments depend on the liquidity providers and other market participants, which means more changes might occur.
While brokers try their best to keep restrictions to the minimum, we encourage you to closely monitor your trades during the affected period.
What to be careful through US Election 2020?
With the U.S Election expected to increase market volatility, keeping traders and companies safe is the number one priority for all Forex brokers.
We like to advise that in the event of extreme market conditions brokers will take appropriate actions as required to establish a greater level of control during periods of high market volatility and as such this could happen with little or no notice.
- During this period there may be times where spreads are considerably wider than usual.
- As uncertainty grips the market, Liquidity Providers and Banks retreat. As a result of this, stops may incur greater slippage and stop out levels may be significantly above or below where you expect to be executed.
- The market will be extremely volatile as it responds to news releases and updates.
- Actions Forex brokers may take to mitigate these risks:
- Forex brokers look to protect clients and ensure you have a positive trading experience. Some measures they may take include but are not limited to the following:
- Margin increases:
- As you might expect, Forex brokers may raise margin requirements for key instruments. This reduces the chance of negative equity for clients and aims to reduce exposure under volatile conditions. This could even come in the form of raising margins on hedged positions to protect from liquidity risks.
- Moving instruments to close only:
- Under some circumstances liquidity could be so poor and volatility could be so high Forex brokers may deem it best to move some instruments to close only.
Hercules.Finance will endeavour to notify you prior to any of these changes.
Why Trade the U.S. Elections?
The U.S. elections are set to be one of the biggest economic events in the last four years.
Not only will people around the world be glued to their screens to discover the outcome, but financial markets will also be closely watching.
Political events usually have a major impact on the financial markets, causing financial instruments such as stocks and currencies to either rise or fall in value.
Historically, the US Presidential election has always had a significant impact on financial markets, however, there are a few times in living memory where we have approached a US election with so many uncertainties.
Add to those uncertainties President Trump’s threats to challenge and dispute results and the expected outcome is chaos and weeks of market volatility that will most likely last long after election day.
This high volatility represents an unforgettable opportunity for traders to profit and take advantage of price fluctuations.
High volatility creates opportunity. Opportunity creates more chances to profit.
Join CM Trading US Election Webinar
Fred Razak, CM Trading’s in-house Senior Trading Strategist will be presenting a LIVE presentation on how to trade the volatile anticipated U.S. elections coming up on November 4th, 2020 between current U.S. President Donald Trump & former Vice President Joe Biden.
CM Trading’s Chief Trading Strategist will provide traders with the best strategies used to tackle the volatile, but highly profitable market climate around the U.S. Elections.
Discover how to trade the opportunities presented by the most controversial election in the history of the United States.
Gain the experience so that you will be able to participate and trade.
Make sure to register today, spaces are limited.
Join SquaredFinancial’s Webinar “The US Election 2020”
The US Election 2020, how Will it Impact Financial Markets?
The US Election is approaching fast and the result will have a significant impact on the financial markets.
There has never been a more exciting opportunity to trade.
High volatility is very likely, creating opportunities for traders.
In order to get you up to speed with the market impact, SquaredFinancial’s Chief Market Analyst, Rony Nehme, will be hosting a live webinar today regarding How the US Election 2020 will impact the Financial Markets.
Registration for this special event is FREE.
What are you waiting for? Save your seat and discover unique insights on the world’s most talked event.