eToro has issued a warning to traders, alerting them to the potential for heightened market volatility as the U.S. election approaches, with the race expected to be closely contested. The broker advised its clients to remain vigilant during this period of uncertainty and to carefully monitor their trades. The warning highlighted the importance of setting stop-loss and take-profit levels to mitigate risk in case of significant price movements.
According to eToro, extreme market conditions due to the election outcome could activate circuit breakers, which are emergency measures which are to slow down trading during times of heightened volatility. The company emphasized that such conditions may result in changes to market spreads, which could lead to unexpected price shifts.
eToro Warns Traders of Increased Volatility Ahead of U.S. Election
eToro operates its own internal circuit breakers across all asset classes to help safeguard traders from these extreme fluctuations. These breakers automatically activate when there is a significant deviation in asset prices, temporarily preventing traders from opening or closing positions until the market stabilizes.
The broker also explained that its circuit breakers are going to respond to a range of conditions, including over-widened spreads. This occurs when the difference between the bid and ask prices for an asset becomes too large, signaling a risk of excessive volatility. Additionally, technical issues on the platform may trigger these safety measures, ensuring that traders are under protection from unexpected disruptions.
With the U.S. election just around the corner, eToro’s warning serves as a timely reminder for traders to stay alert and be ready for potentially turbulent market conditions. The broker’s proactive measures are going to help users navigate this period of uncertainty with greater confidence and security.
As the election draws near, eToro’s message serves as a reminder of the unpredictable nature of financial markets, encouraging traders to stay informed and ready for any disruptions.
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