As November 5, the date of the much-debated US presidential elections, draws closer, traders may find themselves at an impasse: how to navigate market volatility.
Generally, ahead of a political event of this magnitude, monetary policies tend to change dramatically, bringing about both opportunities and risks. Here is what to expect this election season and how global multi-asset broker Exness can assist traders on their journey.
What would a Harris win mean for the Forex & stock markets?
As a strong believer in Biden’s principles and policies, Kamala Harris will build on his legacy. Green energy & renewables, Medicare support, lower taxes for individuals and higher corporate taxation rank highest on her political agenda.
At the same time, she demonstrates greater openness toward other key areas of business than Biden, such as:
● Big Tech & AI - Tech giants like Microsoft, Meta, and LinkedIn count among Harris’ top supporters throughout the years, signaling continuous growth for tech tycoons with Harris at the helm.
Similarly, the AI sector may also continue to evolve relatively smoothly under a Harris administration, with steps being made toward regulation, which indicates a rather cautious stance toward AI.
● Cryptocurrencies - Breaking away from Biden’s framework, Harris adopts a supportive stance toward crypto and the digital asset industry. This may herald further growth for crypto.
● The US Dollar - Surprisingly, the US Dollar appears to be weaker than it should have been during the presidential debate, with numerous analysts attributing this to Harris’ potential win.
What would a Trump victory mean for the Forex & stock markets?
Former US President Trump is well-known for his progressive stance toward Corporate America, favoring lower corporate tax (15% off) and 0 social security tax, unlike his contender. Fossil fuel explorations are set to continue if he were to win.
With the promise to “end inflation and make America affordable again”, Donald Trump won the hearts and minds of many voters among corporations and regular individuals alike. The top gainers under a Trump administration include:
● Crude oil - The promise to reduce oil supply bottlenecks through targeted investment could spur speculative activity in the futures markets, widening the WTI Crude - Brent Crude spread.
● Big Tech & AI - X platform’s owner Elon Musk’s support for Donald Trump made headlines even before the tech CEO had taken over the social media channel.
Advocating deregulation, the former US president has a lighter stance when it comes to AI regulation, underscoring the Republicans’ support of AI technology development which is “rooted in Free Speech and Human Flourishing”.
● Cryptocurrencies - A strong supporter of cryptocurrencies and the digital asset industry, Trump sent crypto bulls a strong signal in September, when he announced the rollout of his own crypto enterprise - World Liberty Financial.
● The US Dollar - Unlike his contender, Donald Trump as president is perceived as positive for the US Dollar and a sign of strength.
With two strong candidates engaged in close competition for the White House, plenty of opportunities arise across the financial markets as volatility surges and traders adjust their positions.
To navigate this period, risk management and keeping abreast of the latest news is key. It is in times like this that trading with a trusted broker proves its worth. Acting as a partner, Exness equips you with the right tools to help you mitigate risk.
Making the most of the US elections with Exness
With a truly unique value proposition to traders, the multi-asset broker presents a set of better-than-market advantages, which set it miles ahead of the competition.
Over the years, the Exness brand name has become synonymous with fairness, transparency, and low-cost trading for everyone - because everyone has an inner Trader to unleash. If trading is in your DNA, here is how Exness can help you achieve your goals:
● Razor-thin spreads: Exness offers not only lower spreads than the industry standard but also ensures they do not widen in times of high volatility such as the US presidential elections. This allows traders to enjoy lower transaction costs and better manage their expenses as they plan their trades. What’s more, Exness recently trimmed spreads on Gold CFDs by 20%.
● Rocket-fast execution: With Exness, you can trade as fast as you can click. Literally! Thanks to its direct connectivity to diverse multi-asset liquidity pools, the broker can execute high volumes of orders in milliseconds. To traders, this means better pricing and minimal slippage (if any).
● Transparency & ethics: As one of the largest multi-asset brokers globally, Exness maintains an impeccable reputation. All fees and commissions are openly displayed on the website for everyone to see and know what to expect from the moment they sign up. What you see is what you get!
● Outstanding customer support: Just like the financial markets never sleep, Exness customer support never sleeps either. Available 24/7, in multiple languages so traders can receive the answers they need when they need them, without facing any language barriers.
● Stop Out Protection: What further differentiates Exness from other industry players is its ability to innovate and stay ahead of the curve. A hallmark feature of the company’s superior trading environment is the Stop Out Protection which reduces the risk of random trade stop-outs by 30%. This means you can keep positions open longer, giving you the opportunity to get more out of every trade.
● Negative Balance Protection: Every trader, regardless of the jurisdiction, benefits from Negative Balance Protection which works as a safety net, allowing them to minimize losses.
● Swift deposits & withdrawals: In addition to offering better-than-market trading conditions, Exness also provides a vast range of payment options, accommodating all needs and wants. From traditional credit/debit card and wire transfer options to mobile money and various local methods for deposits and withdrawals, traders enjoy unmatched flexibility.
Now that you have all these tools at your fingertips, how will you make the most of trading during the US elections?
