President-elect Trump holds a general press conference – Tomorrow, 11 January 2017.
- No specific topic has been announced.
- We expect investors to monitor his comments for any hints regarding the details on the policies that he will try to enact.
- If he does provide any specifics, we could see sharp movements across USD crosses, as well as all the other asset classes that have priced in the “Trump effect”.
*All trading involves risk. It is possible to lose all your capital.
How to prepare for the upcoming volatility?
Foreign Exchange market is generally affected by Macroeconomics, and prices change due to some political events, economic news, natural disaster and many more conditions.
Especially, some important figures in US have very huge power to move the market and mix them. They may not be able to control the market, but they can surely create a huge volatility in the market.
Do you take the “High Volatility” as an “opportunity” or “risk? Well it is both.
Let us take this opportunity to introduce you 3 points to trade through “high market volatility” smartly.
Smaller Trading Volume
If the volatility is extremely high in the market price and the market liquidity is thin, “Slippage” happens often. If the “slippage” happens on your each trade, you may be losing much more than you expected by just placing trades normally.
To avoid that, you can trade with smaller trading volume as possible.
Smaller the trading volume, the smaller the probability of slippage on your trades.
Watch Live Conference or Events
If you know that some institutions or conference is going announce something, you may know when that is going to be also.
In that case, you are recommended to follow a live video on the web, or try to stay updated by your local news companies online.
If you can follow the news, you may be able to follow the trend too.
You should be careful when you are hedging positions. Because unlike normal trading hours, the spread can goes wider and the required margin amount can be much higher then usual.
Even if you have hedged all positions in order to get through high volatility in the market prices, your account can get stop out and all positions can be liquidated.
Visit the Official Website of FXGiants, and Start trading for tomorrow!