Disliked{quote} I think you cleared it very well! So, solutions to trade news should be: 1. Avoid ECN or not? 2. Certainly avoid MM.. who are they? 3. Find a broker with 10y+ business To trade it professionaly is it really necessary to have an account at a major broker, like LMAX, SaxoBank, where you need 10k to open account? Im trying to get things real clear on how serious traders can do this without getting wiped. Thanks for helping me here guysIgnored
There's a reason the spread increases: all large players remove all limit orders, so the orderbook is empty. That's the reason spread increases and bad fills...there's no one out there during the news release who's willing to take your trade. Big players don't gamble. So as yourself why would they provide liquidity during the news release.
Now I know the majority of traders probably don't believe me, and that's fine. If you do your research, and for example look at an orderbook for fx futures during the news release you'll know what I mean. Alternatively, watch the ES orderbook around NFP.
Cheers & I hope this clarifies a few things,
Snow