WHAT IS NEWS TRADING ??
NEWS TRADING IN FOREX
Forex market mengalami peningkatan volatilitas selama berita high impact, Menciptakan kesempatan untuk mendulang pips atau kehilangan pips dalam hitungan menit atau bahkan detik. Dan tidak semua broker forex mendukung untuk perdagangan selama berita. Forex markets has increased the volatility during high impact news, creating the opportunity to gain pips in a matter of minutes or even seconds. And not all forex brokers support to trade during news.
There are several important factors in order to news trade:
- Trading platform should be fast
- Fast order execution, minimum requotes
- Pending orders are guaranteed instant
- Instant execution for SL
- Spread a fairly low
- The spread does not widen significantly during the news
- One-Click-Trading
Some problems when trading news:
- Trading platform freeze (stop), new orders command is not executed, the order can not be closed
- Demand for new orders declined, otherwise traders get re-quote a couple of times
- Pending orders are not executed or not executed at all, or executed later at a different price, which resulted in loss
- Just before the news release there is an opportunity for brokers to manipulate the price of its own, for example, by creating a fake spike to trigger the order, so that when the reaction to the news comes, it will cause the market to move in the opposite direction, dragging your order, trapped on a spike. Because based on experience, increased volatility during the news, the manipulation of the price of the broker is expected to be hidden / covered by the overall volatility.
Some of the major Forex brokers will send an email to their customers before the release of important news (eg NFP) informed about the clock news release and a notice that there will be price fluctuations during the news release.
But most brokers wont send the email, and traders should be aware of high impact news in Forex trading, and learn about how they operate during the hours broker news.
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