LiteFinance, a retail forex and CFD broker, says its customers might experience “an unstable situation” in the currency, commodity and stock markets before and after the US midterm elections held today. The US midterm election is a major political event in the United States. The election is conducted mid-way into the US President’s four-year term of office to elect new members of Congress.
As a result of the election, LiteFinance announced on Monday that customers might get “wider spreads, higher volatility, lower liquidity or price gaps.” This is as elections and other major political events are known to disrupt financial markets.
In the announcement, the broker said it reserves the right to augment margin requirements on all trading servers. “Consider this information when making trading decisions and provide enough margin in your trading accounts during the above-mentioned period,” the brokerage said.
Elections and Financial Markets
According to Strategas, an institutional brokerage firm that provides macro research, advisory and capital markets services, equity traders appear to be in favour of Republican control of both the US Senate and the House of Representatives.
Additionally, Jan Hatzius, Goldman Sach’s Chief Economist believes that because participants in the country’s financial market are expecting a Republican win, they might have a “muted” reaction if that happens.
Meanwhile, reports that stock futures increased on Tuesday as investors looked forward to their predictions becoming reality. The outlet said the Dow Jones Industrial Average futures went up by 0.33%, S&P 500 futures by 0.35% and NASDAQ 100 futures by 0.63%.
LiteFinance and Expansion
Also, LiteFinance implemented changes in its institution last year, rebranding to LiteFinance from LiteForex. The company said the rebranding was part of a major restructuring it made to its group of companies.
On top of that, earlier this year, LiteFinance expanded its presence in Asia with the opening of a new regional representative office in Singapore. The broker said the goal is to support its clients and partners in the country. This is even as LiteFinance boasts representative offices in Asia and Africa. The offices are located in Kenya, Ghana, Morocco, Indonesia, Kyrgyzstan, Mongolia, Myanmar, Thailand, Vietnam and a few other countries.
