Hi Nuttapon,
On the 8th of November, US citizens will head to the polls to vote for the 58th President of the United States. This US Federal Election campaign has been one the most tumultuous in recent history with recent polling indicating it is too close to call.
Analysts suggest a Clinton win will result in a tamer market reaction, primarily due to a consistent democratic policy. A Trump win, which could see a dramatic shift in policy, may result in a period of rampant volatility in all financial assets with the US dollar a critical currency to many economies worldwide.
We kindly advise our clients to carefully consider and evaluate the potential impact of the event on your existing and future positions on these products. Please also consider the potential trading conditions below in the lead up to the event:
Extreme volatility on USD, CHF, EUR, MXN currency pairs and on US indices, precious metals and soft commodities.
The propensity for liquidity providers to significantly limit their liquidity, leading to a considerable widening of spreads as well as potential increased amounts of slippage on executed orders.
Ensuring you have enough available margin / equity in your account for the days leading up to and during the voting / announcement of results. This includes "hedged" positions (long and short on the same symbol believing this eliminates your market risk) which if spreads widen have the potential to stop out positions.
Should any further trading terms change on our products, Pepperstone will endeavour to contact you via email, MT4 or by changes made to our website. However, we reserve the right to make further changes without notification such as increased margin requirements, trading restrictions on certain products or any other such matter.
As always, in times of volatility, please ensure that your account is adequately funded to manage your open positions as there may be an increased risk during this time.
Feel free to contact support if you have any questions or if there is anything else you would like assistance with.