OANDA, Dukascopy and Other Two Brokers Warn of Possible Market Swings Due to Turkish Elections

Industry leading online brokers including OANDA Securities, Dukascopy, FOREX.com Japan and IG have issued their warnings regarding possible market swings due to the upcoming Turkish elections.

All these trading firms noted that the Republic of Türkiye will hold presidential and parliamentary elections on May 14. The morning of May 15, 2023 may see sudden price fluctuations depending on the outcome of the election. These changes are likely to impact currency pairs, including the Turkish lira. It is possible that the spread may widen beyond the normal range or that there may be a divergence (slippage) between the order price and the execution price.

These brokers advised traders to be careful when trading and managing positions. Furthermore, In response to the possible heightened market volatility and reduced liquidity, brokers may be forced to take measures such as widening spreads, limiting positions, and raising maintenance margin rates.

OANDA Securities added that, depending on the market environment, all or part of an order may take time to execute or the transaction may not be completed on its trading platform.

Dukascopy also announced: "The maximum exposure for currency instruments involving the Turkish Lira (TRY) are being decreased during the upcoming presidential election in Turkey."

The following maximum exposure will be applied with immediate effect on opening new positions and increasing existing positions:

• EUR/TRY: 100'000

• USD/TRY: 100'000

• TRY/JPY: 1'000'000 (unchanged)

Dukascopy explained that clients currently holding positions that exceed the above maximum instrument exposure may continue to hold such positions.