IG warns of FX market fluctuations due to Turkish presidential election run-off vote
Electronic trading major IG has issued a warning regarding Forex market volatility around the upcoming ballotage in the Republic of Türkiye.
Presidential and parliamentary elections were held on Sunday, May 14, 2023. Since no candidate received more than 50% of the votes required to be elected, a run-off election for Turkish president will be held on Sunday, May 28.
IG explains that the liquidity in the Turkish lira (TRY) market dropped significantly on May 14 (Sunday) before and after the election, and as a result, there was a period when online trading could not be provided. There is a possibility that the Turkish lira market will fluctuate suddenly depending on the trend of the run-off vote as well.
From the second half of this week to the first half of next week, especially in the morning of Japan time and on Monday, May 29th, IG expects a sharp increase in volatility in the Forex market due to election results, etc.
Customers who hold positions in Turkish lira currency pairs and are planning to trade are advised to be careful about trading and position management.
There is a risk that the opening rate at the beginning of next week will deviate significantly from this weekend’s closing rate.
From Monday onwards, IG may not be able to provide trading rates for Turkish lira currency pairs due to a decrease in the liquidity. There is a possibility that the spread between the selling price and the buying price of the Turkish Lira currency pair will widen. In addition, the minimum input price range for additional stop orders may be expanded.
The required margin for new orders and/or the maintenance margin for open positions may change without prior notice.