Hi everyone,
A lot of discussion was around the "box play". For those of you just joining us it’s when you "trap" in the current price with limit orders 10-however many pips away you feel like placing them. So if the price reacts to the news by going up, you’re in, and vice a versa.
Here's the problem as many have noted: Slippage is a major issue and there's no way a broker can react fast enough to get you in that price in an extremely volatile situation. For instance, the last time the nonfarm was released the price of EUR/USD went through the roof by about 100 pips in literally a matter of one second. Slippage? No way?!
And if you did take a fill going long at a much higher price you would have been disappointed because the next second the price started dropping as a reaction to the huge spike.................
A lot of discussion was around the "box play". For those of you just joining us it’s when you "trap" in the current price with limit orders 10-however many pips away you feel like placing them. So if the price reacts to the news by going up, you’re in, and vice a versa.
Here's the problem as many have noted: Slippage is a major issue and there's no way a broker can react fast enough to get you in that price in an extremely volatile situation. For instance, the last time the nonfarm was released the price of EUR/USD went through the roof by about 100 pips in literally a matter of one second. Slippage? No way?!
And if you did take a fill going long at a much higher price you would have been disappointed because the next second the price started dropping as a reaction to the huge spike.................