WARNING: Potentially hazardous market conditions – Japanese golden week
Dear Trader,
WARNING: Potentially hazardous market conditions – Japanese golden week
Japan has an extended spring vacation, ‘Golden Week’, from 27th April to 6th May. This will be the longest market closure since the end of World War II, creating potentially hazardous market conditions due to the low liquidity expected across all markets during Asian hours.
Low liquidity, especially during Asian hours, can create extreme market movements aka ‘flash crashes’. Recent examples of these include:
- 3rd January 2019 – JPY crosses +10%
- 7th October 2016 – GBP crosses -10%
IC Markets urges all its clients to take precautionary measures before the holidays. This includes assessing and reducing risk exposures, setting stop levels, especially on JPY crosses. Furthermore, additional funding may protect clients from large adverse movements in the market.
Kind regards,
IC Markets