Electronic trading major IG today issued a warning regarding market fluctuations due to the upcoming Turkish presidential and parliamentary elections.

The Republic of Türkiye will hold presidential and parliamentary elections on Sunday, May 14, 2023.

Depending on the outcome of these elections, the Turkish lira market may fluctuate rapidly. In particular, the start of trading on May 15th (Monday), which is the beginning of next week, may not be able to start as usual because it is expected that volatility in the Forex market will rise sharply due to election results and other factors.

Monday’s open rate may deviate greatly from Friday’s close 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 of covered financial institutions, etc., and it may be unavoidable that IG will not be able to provide online trading or rate distribution, or both.

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.

IG says it will try to maintain the normal spread as much as possible, but depending on the market environment, it may be forced to expand the spread. At that time, if the maintenance margin rate (margin effective balance / maintenance margin) is low, the possibility of a margin call will increase.

If you have any questions regarding this matter, please feel free to contact IG’s help desk.