Forex trading reports gives some traders the info that they have to make lots of money with day-trading or scalping techiques but for others it just seems to lead to a giant wreck. The spikes that can happen in currency values around the time of forex trading stories press releases look like they should offer great potential to earn profits so what goes pear shaped? Here are three things that will have you trapped in a losing trade. test your broker’s terms and conditions if you need to trade around stories press releases. Some will instantly close your currency trades on occasions of high volatility. Others will not permit you to open a new trade. Many brokers will increase the spread at these times and you may not be told by how much. The higher spread can be anywhere up to five times the standard spread for that currency pair. With some market makers you can experience major slippage even in comparatively stable times. Around the time of a currency trading press release it is far more likely as the price can change in the split second between you seeing it on screen and clicking a button.
The same is applicable to stop and limit orders : you’re much less likely to get the price you expected at these times. This will mean a system that worked well on back tests has very different results in real time.
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