How to trade election-driven moves
The US presidential election is here, and markets are bracing for intense volatility. Big events like these are exactly what traders wait for!
Opportunities in play:
💹 Currency markets are set to react quickly to election results, with trading taking place overnight. A Trump victory could strengthen the dollar on hopes of tax cuts, while a Harris win might lead to a weaker dollar on expectations of higher government spending.
💰 Crypto markets, open 24/7, offer unique trading opportunities driven by election news. Trump’s pro-crypto stance could drive Bitcoin higher, while Harris’s focus on regulation may apply downward pressure.
📈 S&P 500 futures will start moving overnight, but the main action is expected on Wednesday, with a swing of about 2.2% anticipated, according to options data. A Trump win may spark an upswing due to his pro-business stance, while a Harris victory could lead to a potential downturn.
High volumes and elevated volatility are likely to continue through the week as more information rolls in. This is the moment traders live for – are you ready to take action?
P.S. Before you dive in, keep in mind that trading conditions in such volatile moments can be especially challenging. Price swings are sharper, and execution might be slower or at less favorable prices. Staying prepared and managing risk is key in these intense market periods.
