Traders should be aware of the large risks involved with holding positions over the US elections [Video]
|Listen for the latest market mood for the SPX.
There are reports that there has been some progress towards a stimulus deal, but not enough to make a deal imminent before the US elections. Equity markets recent falls have been due to the disappointment of no US stimulus deal looking likely before the US election.
However, with either a President Trump second term or a Joe Biden victory the US stimulus package is still expected to pass after the US elections. This means that any meaningful dips in the S&P500 before the US election should find buyers.
However, traders should be aware of the large risks involved with holding positions over the US elections next week and square positions before the elections.
Trade Risks
The main risk to this trade is some very negative COVID-19 news, like more shutdowns across the world, which causes equity markets to sell off sharply.
Another risk is if the chances of a US stimulus deal fade and/or the package offered is smaller than the market expects.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.