Trading Conditions over the US Presidential Election

As we discussed last week, the US Presidential Election is set to take place on Tuesday, 8th November 2016.

Traders should be aware that financial markets will be impacted by the US election. Whilst big events like elections provide opportunities for traders, they also amplify risk. Traders should be aware of potential changes in trading conditions

Changes in trading conditions may include:

  • Increased volatility. Some currencies and commodities will experience very volatile pricing, especially those closely related to the US dollar.
  • Restricted liquidity. Liquidity providers may reduce available liquidity. Demand in the markets may increase rapidly, leading to wider spreads and increased slippage.
  • Margin requirement increases. Due to increased volatility and restricted liquidity margin requirements may increase at any time.

Titan FX Risk Department will be monitoring the markets and polls throughout the election, and will be in constant contact with our Liquidity Providers. Whilst no action has been determined as yet, we reserve the right to make changes without prior notification. Changes may include margin requirement changes and restricted trading on some commodities.

Please ensure that your account is adequately funded, and monitor your trades closely throughout this period.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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