The US election also has a major impact on the financial markets. Accordingly, it can also be the case that the US election result has an influence on CFD trading in Germany or other countries. The election will take place in the USA on 8 November 2016 and it seems as if it will be particularly exciting this year. The result of the election could have an impact on the stock market in Germany, but also throughout the world. While there has been very little movement in the market over the past two weeks, there may be some changes in the coming two weeks. Already now there are betting offices that accept bets on the US election, where the chances for Clinton are somewhat better than they are for Trump.
Clinton has better forecasts – but we remember Brexit
Hillary Clinton clearly has better forecasts at the moment, but many traders like to remember Brexit, which also came as a surprise and caused many stocks to go down significantly for a short time. Many people already know that voting in the USA will be very tight and that it will take a long time until all constituencies have been counted.
CFD traders should expect surprises in the US elections. It has already become known that some brokers have increased the collateral for CFDs and foreign exchange if these could have something to do with the US election. This means that traders have doubled their margins and deposits. Ultimately, traders will be offered significantly lower leverage than was the case some time ago. Those who could previously trade a leverage of 1:400 can now only trade a leverage of 1:100 or 1:200. What at first glance seems astonishing is at second glance an ideal measure to protect customers. For many customers it might not be so easy to understand what effects the US choice can have on trading forms and what has to be considered here.
Cautious traders should know that it is safer to wait a little before the US choice and not to have invested too much money in the market. It is therefore safer to wait a little before the election and, for example, to buy a paper quickly in the event of a stock setback after the election decision, or to take appropriate action if the prices are in the basement immediately after the election. In the long run it would then be possible with many shares that these recover again like also those after the Brexit, on which investors could speculate then. Basically, it is important to know, especially in CFD trading, that the US election could cause some turbulence in the market.