Forex News – US Election Time Line – The US election is set to begin tomorrow, Tuesday the 8th November. This is the most important market event since Brexit and the potential impact on markets is significant.
A Clinton win means certainty and generally a risk on attitude in markets, equities higher, USD stronger and a rate rise in December, i.e. the status quo continues..
A Trump win will mean uncertainty and a risk off attitude in markets, higher volatility, equities lower, USD weaker and a temporary hold on future rate rises in the US.
Voting and results schedule (platform time GMT +2)
Tuesday 8th November
- 07:00 – Voting begins
- 13:00 – The majority of polls are open across the US
- 23:00 – Results from exit polls are released and early predictions made
Wednesday 9th November
- 00:00 – Results coming in state by state
- 03:00 – Suspense building..!
- 06:00 – This is the likely earliest time for a winner to be announced
How to prepare
Clients are advised to use extreme caution for the duration of the US election. The election has the potential for high volatility as the market prices in the results throughout the day.
Increase capitalisation – Top up your funds in case margins are increased on products that you are trading and to prepare for the higher volatility.
Decrease exposure – Periods of heightened volatility demand lower exposure. Lower exposure will allow positions to move more out of the money without exceeding your defined risk limits. Also consider further limiting exposure to or ceasing trading on products that will be most affected by the election.
Use stop losses and wider stops – Using stops in the markets has never been more crucial. Unexpected moves are likely during the election, so make sure to protect positions with fixed stop losses.
Hedged accounts – Traders who have hedged positions (long and short the same product) should be wary that wide spreads may result in a margin call and or stop out.
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