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How You Can Make Money On Election Day

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Image by E. Dichtl from Pixabay

With the next important election in the U.K. coming up it will be even more important to understand how to take advantage of the political environment to make money and avoid the stress on election day. On June 8th pay special attention to different trading insights regarding the financial markets to get the edge over other investors. We took a look at IG Markets which is considered a global leader in online trading having analyzed 300,000+ trades to date. Anyone of the 36,00 traders will be paying close attention just as they did during the Brexit vote or the past presidential election. But here is a highlight of what we might expect on June 8th.

Image by David Mark from Pixabay

Data analysis shows how major political events can affect traders’ habits.

  • Indicators of an election winner usually have nothing to do with online traders
  • There are three markets that traders swarm to in big political events
  • One of the most traded shares online will be one of the leading UK supermarkets
  • Most traders are in there low 40’s during a political event
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IG is able to predict potential market activity before the election next week

  • Long or short positions, or positive and negative positions on the outcome, will typically go back and forth more than 50% in as few as a few hours.
  • The biggest change occurs early on in the results following an election once the first results are being announced.

Other interesting findings about how to make money on election day

IG had some very interesting findings. The top three markets that traders always rush to are the DOW, FTSE 100, DAX trading mostly between 2-5 am.  A great opportunity that is usually overlooked is the Asain market. Most traders stay away from this market and instead trade companies like Tesco, Barclays, and Lloyds. When it comes to currency GBP/USD, USD/JPY and EUR/USD are the most frequently used.

Featured Image by E. Dichtl from Pixabay