Trading the news

Trading the news

Trading the news is probably one of most important topics related to forex and brokers, thus I have decided to use a separate page for this topic.

I'll start right away with the fact that for many years I have not only not hiding, but have always publicly declared that it is not possible to trade the news comfortably in a market company, because there are no providers who always perform perfectly during the news. If someone says something about such providers, then undoubtedly, you decide whether believe or not, but as for me, I don’t need to believe in this case, I know that they don’t exist, because I have been working with providers for over 10 years and we at AMTS Solutions know them inside out.

What to expect?

There may be good execution during the news or may not in a market company. You are lucky if your order was executed without much slippage. Otherwise, consider that you were not lucky. There is no stably good execution during the news in a market company. This is a 50/50 chance.

A non-market company may execute well on the news when orders are not sent to providers and are executed automatically at current prices. I think that there is no need to explain about possible consequences in this case. In the best case, a profitable news trader will be put on the hedge and this will be an end of free ride. Worse is if the company will close the trader’s account or even worse if it starts working against such a trader. The worst thing is that all the profit can be taken away.

Tales of "experienced ones"

If someone is trading the news with a “miraculous” broker and stably earns for a long time without having any problems, then there are four possible options: he was lucky, he was not caught, a miracle is happening, he is lying. Nothing else I can think of.

RannForex on the news

As for RannForex project, I totally cannot guarantee good execution on trading the news. It happens and some traders have noticed it but also there were some complains about the execution. I openly say that all trades are sent to the provider and execution on the news totally depends on the provider despite of the technologies used. And during the news provider widen spreads and reduce execution quality, possibly due to objective reasons (order lines grow, the instruments go long way and activate many pending orders), maybe factitiously, we cannot find out.

Do not expect for a miracle

If we talk about trading conditions – the main advantage of this project – little spreads, that allow you to reduce significantly trading expenses, especially for pips traders, scalpers and other high volume traders. Well, this advantage goes away during the news because spreads grow many times and you cannot do anything to it, this is the market. Therefore, RannForex is not suitable for trading the news and there is nothing to complain about. I have explained everything clearly. It is actually as suitable as other market companies are. Sometimes better and sometimes worse. Execution during the news is very unstable. If you want ideal (or at least good) execution while trading the news, you need to find a broker who do not fully send trades to providers (though they will never admit it), understanding that it may not last long. Do not expect miracles from RannForex, miracles don’t happen.

Note

Note that above mentioned is only related to news but other quick price changes in the market and to an illiquid market for example during bank rollovers.

Partially you can avoid serious problems if use trading settings, that allow you to protect yourself in some way against providers’ outrage.

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