Hello, dear friends! Today we will touch on such important topics as economic news Forex. For anybody not a secret that news is most often form a strong and impulsive movement in the market. Chart news we already know in advance!
Using economic calendar, you can already advance to see what event and when would be published. In principle, there are many ways to trade the news, but the most popular is to set pending orders.
With this method we will explore in more detail in the video lesson and look at a few examples. I would fair to say that the use in trading economic news Forex is the most risky way of earning. For starters, at the time of publication data price, can catch Your two pending orders, thus, You run the risk of a double loss.
In addition, the problem can deliver and Your broker. Let’s start with the fact that when you publish data, the order may be opened with a noticeable slippage. Simply put, You will enter the position at a bargain price, for example, You set a pending order at the same price, but will it already absolutely other price.
In addition, 10-15 minutes before the publication of the news broker can significantly extend the spread to a large value. If the same EURUSD spread is 2 pips, before publication of the news, he could easily grow up to 20.
The use of news in trading is a kind of day trading. Most often, economic news, Forex trading used by novice traders, because in this approach they see the simplicity and potential. Practice shows that with experience, traders refuse to use the news and take a more conservative trade.
If You trade intraday, then You need to take into account the release of important news. If You are in the market to open a position and after 10-15 minutes the news is published, it is recommended to translate order to breakeven or just close it, regardless of the outcome. If You are a conservative trader and use to trade in large time intervals, then the news can not follow.
In any case, with news need to be careful as this approach is fraught with many difficulties. Moreover, given the policy of many brokers, this method becomes difficult to apply even from a technical point of view.