US presidential election 2020
There arent two choices thin is election - there are 17,000. Learn how you can trade the US presidential election with our huge range of markets.
Call 010 500 8624 or email newaccounts.za@ig.com to talk about opening a trading account. We're here 24 hours a day from 9am Saturday to 11pm Friday.
Contact us: 010 500 8624
Call 010 500 8624 or email newaccounts.za@ig.com to talk about opening a trading account. We're here 24 hours a day from 9am Saturday to 11pm Friday.
Contact us: 010 500 8624
Tips for trading the US election
1. Keep up-to-date with the latest news
It’s important to keep up to date with the latest news to reduce your your chances of being caught out by quick developing stories. Our award-winning trading platform has a range of in-built tools to help you,1 including news feeds from our in-house experts and Reuters.
2. React in real time
With us, you can trade US indices round the clock,2 and you'll get extended hours on key US shares – exclusive to our clients. Plus, with our free trading app, you’ll be able to react even when you’re out and about.
3. Ensure you don't miss key moves
You can set alerts and signals from within our platform to notify you of key price points to buy or sell, so you never need to be caught out by fast-moving markets. You can change your preferences to receive these alerts by email, SMS or push notification – and you can take a new position or alter an existing one in seconds.
4. Trade on positive or negative price movements
When you take a position with us, you’ll be able to go long or short whenever opportunity presents itself by trading with CFDs. You’d go long if you expect markets to rise, and you’d go short if you expect them to fall.
5. Protect yourself against risk
Even if you’re confident in your own research and analysis, there can still be surprises. Cap your maximum risk by placing guaranteed stops on your positions.3
Why trade the US election with us?
Trade USD/ZAR
Go long or short on a range of currency pairs including all major USD, GBP and EUR crosses
Free risk management
Protect your capital with guaranteed stops that only incur a fee when triggered,3and an account that’s backed by negative balance protection5
Choose from a range of price alerts
Stay informed of market movements with percentage and point-based price alerts – exclusive to our clients
Trade around the clock
Speculate with 24-hour trading on leadingUS indices2 and extended hours on key US shares
How could Joe Biden's win affect market sentiment?
Market analysis by IG Senior Market Analyst Joshua Mahony.
Despite a raft of lawsuits from Donald Trump to fight back against the election result, it is evident that Joe Biden has taken the White House by a significant margin after a drawn-out week of ballot counting. The consistent gains we have seen since election day highlight a feeling of optimism, in that the result will stand and trade relations between the US and other countries will normalise.
Between improved global trade, expectations on a major stimulus package, and hopes of a coronavirus vaccine, we have seen a Biden bounce for global equities. Unfortunately for the dollar, the risk-on sentiment we are seeing represents a negative for USD and other havens such as the yen.
However, that does not necessarily stand for gold, with the precious metal performing best when stocks are moving gradually higher – rather than during major declines or spikes in markets. As such, while gold could underperform during a period of major market appreciation, it looks likely to gain ground over time once we start to see this market surge turn into a more gradual trend once more.
One of the biggest winners from this comes in the form of the Chinese yuan, with the prospect of a more normalised relationship with the US helping reverse the weakness seen throughout the Trump presidency.
Could Trump's refusal to concede affect the markets?
Trump’s failure to concede quickly could cause increased volatility in the markets in the coming days or even weeks. Markets hate uncertainty, and the outgoing president’s failure to recognise that he has lost is certainly unprecedented.
In response to the result, Trump has filed several lawsuits in numerous states, hoping to overturn the result on claims of a fraudulent election. But, with speculation mounting over the salience of Trump’s legal battles – and with the so-called Biden bounce already in effect – it remains to be seen just how sincere a chance he has of clinging onto power.
Steps to trading the US election?
1. Choose a trading method
CFDs enable you to speculate on the price of an asset without taking direct ownership of it. This gives you the flexibility to go long if you think an asset’s price will rise, or short if you think it will fall.
2. Select a market You can trade the election by speculating on markets such as indices, shares and forex pairs. The US 500, GBP/USD and US stocks all tend to move in the run-up to polling day, and often continue to move in the fall out of the result – meaning there is opportunity to profit from the election
3. Open an IG trading account
You can open an account with us in just a few minutes, and there’s no pressure to add funds until you want to place a trade.
4. Be ready to react to US election news
With our in-platform news feeds from our expert team and Reuters, plus our range of trading alerts and signals, you never need to be caught out by breaking news stories.
5. Log in and place your trade
Once you’ve followed the previous steps, you’re ready to log in to your account and take a position on the US election.
Open an account today
Open an account today
Fast execution on a huge range of markets
Enjoy flexible access to 17,000 global markets, with reliable execution
React faster with powerful technology
Our platform and apps are intuitive and highly responsive, so trading opportunities are always within reach
Grow your confidence with an established provider
We’re a FTSE 250 company that’s been leading our industry for nearly 50 years, so our expertise is second to none
Open an account today
Open an account today
Fast execution on a huge range of markets
Enjoy flexible access to 17,000 global markets, with reliable execution
React faster with powerful technology
Our platform and apps are intuitive and highly responsive, so trading opportunities are always within reach
Grow your confidence with an established provider
We’re a FTSE 250 company that’s been leading our industry for nearly 50 years, so our expertise is second to none
When was the US election?
The US election was held on Tuesday 3 November 2020, when all 50 states and Washington DC cast their votes. The result was delayed, with neither candidate able to clinch the all-important 270 Electoral College votes until Saturday 7 November - when the Associated Press declared Pennsylvania for Biden, pushing him over 270 and handing him the presidency.
Volitility related to the election could continue unitl Congress certifies the result on Wednesday 6 January 2021, or even until the winner is inaugurated on Wednesday 20 January 2021
To find out about significant movement as it happens, you can set alerts in an IG demo or live account.
How can you hedge risk following the presidential election?
You can hedge risk following the presidential election by opening positions that will turn a profit if assets you own – such as currencies or stocks – start to lose money. With IG, you can hedge against:
Dollar volatility
We offer over 80 forex pairs including USD/ZAR and GBP/USD, enabling you to insulate yourself from currency risk
Share portfolio risk
We enable you to go short on major indices and over 12,000 shares, so you can protect your entire portfolio from downside risk
Weekend movements
We’re the only provider to offer GBP/USD and the UK 100 on the weekend, so you can offset your risk whenever volatility arises
Markets to watch
The markets to watch going forward are USD, US stocks and indices and commodities including gold and oil. But, it's important to remember that the coronavirus pandemic is likely to create significant volatility following the election period as Biden's plan comes into action.
Learn more about the impact of coronavirus on the markets
Here are some of the financial markets that are likely to be impacted by the result of the US presidential election.
Forex
US dollar crosses, including EUR/USD, USD/ZAR, USD/JPY and GBP/USD are likely to be volatile – as investors move to price in the effects of Biden's presumptive foreign policies.
Stocks and indices
US stocks and indices including the US 500 and Wall Street are expected to experience major price moves as the office of the presidency changes hands.
Commodities
The prices of commodities including oil and gold are likely to fluctuate in line with expectations for the country’s economic direction over the next four years.
Popular markets
Prices above are subject to our website terms and conditions. Prices are indicative only.
Choose IG as your out-of-hours trading provider
It’s free to open an account, and you don’t have to fund or trade until you’re ready.
Choose IG as your out-of-hours trading provider
It’s free to open an account, and you don’t have to fund or trade until you’re ready.
Choose IG as your out-of-hours trading provider
It’s free to open an account, and you don’t have to fund or trade until you’re ready.
Choose IG as your out-of-hours trading provider
It’s free to open an account, and you don’t have to fund or trade until you’re ready.
1 Awarded best trading platform at the ADVFN International Financial Awards and Professional Trader Awards 2019.
2 Trading is available around the clock, apart from 10pm Friday to 8am Saturday and 20 minutes just before markets open on Sunday.
3 A premium is incurred if a guaranteed stop is triggered.
4 Negative balance protection applies to trading-related debt only, and is not available to professional traders.
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