Will elections in the US affect financial markets?

Trump or Biden. Biden or Trump. Youth to power. There is very little left for the elections to be held in the United States in 2020. It is a quote that catches everyone's attention, as the whole of humanity will be affected by its outcome. It's also an event that goes far beyond politics: it's economics, it's society, it's climate change… And it's the markets. So take advantage because everything can take a turn in seconds. Take positions! Some of the leading online brokers,such as AVATRADE or Pepperstone, are alerting to the effects of us voting in the US. The U.S. will have on trading. Consequences that, on this occasion, can be much more accentuated, as the expectation is maximum to know if Democrat Joe Biden manages to leave the Trump era in the White House in a single legislature.

Likely market volatility

The two brokers mentioned above agree on the analysis: elections in the United States will cause high volatility in financial markets. Some instruments, explained in AVATRADE, will rise in value and others will directly collapse. The first poll at the ballot box will take place on 4 November at 4 a.m GMT, and that may be the time when hostilities begin. So, trader, you know, you have to start working because there's not much time left.

At AVATRADE they have launched a number of initiatives, such as the possibility of using long and non-leverage options,which allow long and short positions to be established. They will also, they stress, serve to give the portfolio greater protection than that afforded by the traditional stop-loss. In addition, between 2 and 4 November there is a 33% discount on SPREADs of EUR/USD,NASDAQ, S&P500, Dow Jones and Crude.

Dollar volatility and commodity movements

Stock volatility will surely be a direct effect of the US election. Pepperstone boasts that, within the Forex market, the volatility of the US dollar will increase considerably. And he will as soon as the first polls start public. The recommendation of this online broker is to trade Forex with major, minor currencies and crossovers of them with low spreads.

With regard to trading US indices and stocks, volatility will also be the protagonist. The advice is to trade NAS100, US500 and US30. Finally, raw materials such as oil, silver or bronze will experience, according to Pepperstone, large movements both before and after the election.

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