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The elections in the US are getting closer. Brokers reduce the siphon.

The elections in the US are getting closer. Brokers reduce the siphon.

created Paweł MosionekNovember 4 2016

It is no secret that the results of the US presidential election are always of key importance for the future of the entire global economy. This time the situation is extremely tense - Clinton or the Corpse - two totally extreme camps, and the polls are constantly resolving and the game is about a few percent of the undecided votes of citizens. It is evident that the financial markets are more in favor of Hillary Clinton, but they do not quite believe that this candidate will win. This creates uncertainty, and the uncertainty results in drastically increased volatility in the markets. Brokers are not indifferent to it and have already started informing their clients about the possibility of liquidity dispersion, spreads expansion, increased volatility on instruments strongly related to US policy, and some decided to reduce the financial leverage, even 10 times.

Before you decide to hold your positions open during the electoral period, we recommend figuring out which instruments and in which period your broker plans to limit leverage.

For example, Dukascopy Europe in its announcement informs about reducing the leverage for CFD and USD / MXN indices to the value of 1: 10, until further notice. FxPro, on the other hand, only informed about the risks posed by the next few days and suggested an independent limitation of exposure on the market. Remember that the result on the investment account ultimately depends only on the trader's decision.

November 8 election. Stay alert.

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About the Author
Paweł Mosionek
An active trader on the Forex market since 2006. Editor of the Forex Nawigator portal and editor-in-chief and co-creator of the website. Speaker at the "Focus on Forex" conference at the Warsaw School of Economics, "NetVision" at the Gdańsk University of Technology and "Financial Intelligence" at the University of Gdańsk. Twice winner of "Junior Trader" - investment game for students organized by DM XTB. Addicted to travel, motorbikes and parachuting.

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