Aayush Jindal
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 conditionsChanges 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.
