Trading during Brexit
The influence of fundamental factors is most pronounced during the formation of historical events.
Currently, such a significant historical event is the planned meeting of the British Parliament on the future of Brexit.
Since this event takes place on a Saturday, a day when most trading is not conducted, its impact on the market will be felt fully on Monday, October 21, 2019.
Moreover, this impact will extend not only to currency pairs that include the British pound but will also affect other assets.
The main problems that await traders on Monday, October 21, may include significantly widening spreads, slippage, price gaps, and high volatility .
1. On Friday, October 18, 2019, close existing positions, since if Monday begins with a gap, stop orders will be triggered at the first available quotes.
2. Do not use high leverage on Monday, October 21st.
3. Constantly monitor the spread size when opening new transactions. For these purposes, you can use a special indicator - http://time-forex.com/indikators/indikator-spred
4. Do not lock positions; losses due to an increase in spread may lead to their closure.
At the same time, you can try to make money; this moment will be the most favorable for using such strategies:
• Hep strategy - http://time-forex.com/strategy/strategiya-gep
• Correction strategy – when after a strong trend the price starts to roll back.
