trading the news and the large spread

This may be a stupid question, but I just have to ask anyway

If you trade the fundamental data like NFP or CPI or Retail sales I know that the spread widens just after the data comes out...and if u buy or sell after the data comes out you will have to deal with the widen spread

What if u buy or sell before the data comes out ...or have a lot opened a couple of hours before data comes out...AND that you close the trade 1 hour after the data comes out...does that mean when the data comes out you also have to deal with large spread? thanks

Hi,

Not all brokers widen spreads during news events.....they give u fixed spreads......ofcourse then turn around and freeze the platform at news events!!!!!!!!

As for dealing with the spreads....well lets say u enter a trade at 8.25 and the spread is 2 and at 8.30 the spread moves to 15...then yes if you close your trade at that particular time u need to deal with that spread irrespective of when u entered the trade

Hope that answers the question

okay...lets say you open the trade at 8:25...news come out at 8:30...you close trade at 9:00...then although the spread is 15 at 8:30...you wont have to deal with it if u close at 9:00...right?

The only broker I have used is OANDA, and they will quite often widen spreads at news times. Could move anywhere from 5 to 30 points (It was 20 points when the Australian CPI data came out today), however this lasts for only a minute or so (probably 30 seconds before the data comes out and 30 seconds after the data comes out) then it moves back to the 'normal' spread.

As far as I can see (since I am still a major noob) is that when spreads widen, you need to watch your stops. You could think that you are all nice and safe with a stop 30 points from where the street is and then all of a sudden the spread increases to 30 points and you are stopped out!

if your profit or risk appititie can't afford the volality of the spreads, then stay away it.
There are more opportunity than news trading.

Correct...the spreads should have gone back to normal by then all things remaining equal of course

[quote=CHECKstar;1506789]The only broker I have used is OANDA, and they will quite often widen spreads at news times. Could move anywhere from 5 to 30 points (It was 20 points when the Australian CPI data came out today), however this lasts for only a minute or so (probably 30 seconds before the data comes out and 30 seconds after the data comes out) then it moves back to the 'normal' spread.

Yea Oanda widens the spread always at news releases for up to 30...and u are correct for Aus CPI its was 20 and 30 on the Aud/JPY and I would presume bit higher on the EUR/AUD.....but in fairness to them it only lasts for a min or so or less....then it comes down to more realistic spreads of 3 and 5ish or something...before the normal....

I think if u want to trade news which is a high risk/reward situation u have to realistically factor in high spread costs......thing is that most brokers don't like u trading the news.....especially if u are right and u trade in large numbers!!!!