I'm a swing trader but my question concerns intraday news. If I'm in position already and there are strong news after several hours, can big spread widening hit my stop and what can I do about it?
For example: I go long Eur/Usd 8:00 GMT in the morning at 1.2700 and I set my stop at 1.2650. Now there are news at 14:00 GMT. At 13:55 Eur/Usd's price is 1.2750 BUT spread widens to 50 pips (possible ECN situation). Does it hit my stop? What can I do about it? Removing stops before news? I won't delete my stops ever cause I won't allow infinite risk even for a second. "FX Options" are a good option but I'm trading spot only nowadays. Is there any solution or its just another barrier for a trader who has just to accept it as granted?
For example: I go long Eur/Usd 8:00 GMT in the morning at 1.2700 and I set my stop at 1.2650. Now there are news at 14:00 GMT. At 13:55 Eur/Usd's price is 1.2750 BUT spread widens to 50 pips (possible ECN situation). Does it hit my stop? What can I do about it? Removing stops before news? I won't delete my stops ever cause I won't allow infinite risk even for a second. "FX Options" are a good option but I'm trading spot only nowadays. Is there any solution or its just another barrier for a trader who has just to accept it as granted?