Possible Impacts of the US Election on your Forex Trading

October 31, 2016

Sydney – October 31, 2016

With the November 8 US election expected to increase Forex market volatility and risk, keeping our clients safe and informed has become the number one priority for Vantage FX.

Now in the final month, polls have become more significant and forex markets are taking notice of Republican or Democrat swings and pricing in Donald Trump market risk.

US Flag

Risks that the Elections Could Pose

There are numerous risks that the uncertainty of a major election could pose, including:

Spreads:
During this period there may be times where spreads are considerably wider than usual.

Liquidity:
As uncertainty grips the market, Liquidity Providers and Banks retreat. As a result of this, stops may incur greater slippage and stop out levels may be significantly above or below where you expect to be executed.

Volatility:
As there is no set time for the results of polls or indeed the result itself, the market will be extremely volatile as it responds to news releases and updates.

Actions Vantage FX may take to mitigate these risks

As your broker, we look to protect clients and ensure you have a positive trading experience. Some measures we may take include, but are not limited to the following:

Margin increases:
As you might expect, we may raise margin requirements for key instruments. This reduces the chance of negative equity for clients and aims to reduce exposure under volatile conditions. This could even come in the form of raising margins on hedged positions to protect from Liquidity Risks.

Moving instruments to close only:
Under some circumstances liquidity will be so poor and volatility will be so high we may deem it best to move instruments to close only.

Vantage FX will endeavour to notify you prior to any of these changes being made via both email and the mailbox section of your MT4 platform.

We are here to assist you 24 hours a day, 5 days a week, if you have any questions or require assistance with the above please do not hesitate to contact us using the details listed below.

For more information
Contact: Vantage FX Support
Phone: +61 1300 945 517
Email: support@vantagefx.com

About Vantage FX:
Vantage FX are a multi-award winning Australian Forex Broker providing innovative online Forex trading capabilities to clients globally. Vantage FX continually strives to provide a client-friendly, interactive Forex experience with trading accessibility across a variety of platforms all with the tightest spreads. Vantage FX was the first to offer combined Binary Options and Forex Trading on the one MT4 platform. Vantage FX is an authorised representative of Vantage Global Prime Pty Ltd (AFSL 428901) and regulated by Australian Securities and Investments Commission (ASIC).

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