Press Release (ePRNews.com) - LONDON - Nov 08, 2016 - Financial Spreads, the UK-based spread trading CFD and forex trading company, will be trading key markets throughout the night as America votes for its 45th President.
Markets likely to move due to the US election result will be open for trading. These include:
– Forex: EUR/USD, USD/JPY and GBP/USD
– Commodities: Gold
– Stock market indices: Wall Street 30, SPX 500 and the US Tech 100
Reduced Leverage and the US Election
Financial Spreads offers leveraged trading which is a high risk form of trading.
According to Adam Jepsen, the Founder of www.financialspreads.com, due to higher than normal market volatility, the company has reduced the amount of leverage that clients can use.
“We have already warned clients about the likelihood of high volatility and also reduced the margin (leverage) that clients can use.
“Having said that, clients can still trade with ‘x50’ leverage; trading remains high risk.”
Trading Trend Warning
The company has also issued a warning on FinancialSpreads.com about trading false trends.
The VIX (volatility index) has been hitting its highest levels since the UK referendum and Adam Jepsen thinks that investors should think twice before trading.
“In the aftermath of the UK referendum, the VIX hit 26.7. Prior to the US election, the VIX has already hit the 23 mark.
“Anyone trading the markets should think twice. Not trading until after the election, and when the markets have calmed down, can be a viable option.
“Investors should also be wary of any market trends going into the election. Financial markets can get carried away with themselves.
“For example, on the day of the UK referendum there was constant buying of the FTSE 100 until the voting showed that Brexit was likely. Then there was some very quick selling.”
Financial Spreads Urges Caution
The London-based firm has also been urging caution due to the possibility of rapid market movements.
“If Donald Trump wins, it’s easy to imagine traders hitting the sell button. It’s possible that the US stock market will see a quick 3-5% fall. The US dollar could also weaken by a similar amount.
“Short-term volatility could also remain high as traders try to guess what a Trump Presidency would mean for the financial markets.
“If Hillary Clinton wins then the moves are likely to be less dramatic but very short-term volatility could remain high. Investors should still be careful,” concluded Jepsen.
Spread trading and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.
About Financial Spreads
Investors can trade more than 1,000 markets via https://www.financialspreads.com and the Financial Spreads mobile apps. Markets include the key forex and commodities markets as well as US, UK and European stock markets.
The company produces a range of trading guides including the FinancialSpreads.com forex guide.
Financial Spreads is a trading name of Clear Investor Ltd. which is an appointed representative of FINSA Europe Ltd., company no: 07073413. FINSA Europe Ltd. is authorised and regulated by the Financial Conduct Authority, registered number 525164.
Registered Address: Office 701, Tower Bridge Business Centre, 46-48 East Smithfield, London E1W 1AW, UK. Source :