I started to trade news this month ... I put two different order before nes come out ... I decide the level of orders ... according to pivot point ... I use to choise news ... Calendar of forexfactory .. the color of news released is very usefull ... I put take profit and stop lose ... generally ten pips up or down orders ... The results are quite good .... If you have a similar trading system please send me your advices .. Thanks a lot
- #7
- Last Post: Sep 11, 2008 3:02am Sep 11, 2008 3:02am
Here is my question regarding trading news releases and appropriate brokers. Please provide feedback and comments.
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I have a question re ECN brokers vs retail dealers that someone may be able to help me with...
I like to trade forex on news/economic announcements. I currently trade through IG Markets - a retail dealer/market maker.
Last week I had a punt on the US GDP figures - that they would come in better than expected (which they did). So at 08:29:59 ET (1 second before the figures were to be released, I shorted AUD/USD. I sold 'x' contracts 'at market', to ensure my order was filled.
However, an error message came up saying the following "Rejected: Price no longer Valid". I was quite confused, as my sell order was a market sell order, which I presumed sold my AUD/USD contracts at the current market price.
I then rang IG Markets to ask what happened and they said that by the time the order reached them (I assume there was some sort of internet traffic delay of around 1 second or so) the market had moved around 5 pips from when I pushed the 'sell' button on my IG Markets trading platform. THey said that when this happens (movement of a certain number of points, in either direction - i.e. for or against your position), then they do not fill your order.
Again, I was surprised at this, as I thought by using a market order, I would be filled regardless. Basically, I believe the dealer does not want to cover the difference (the 5 pips) that came about as a result of the delay between when I pushed 'sell' to when they received the order in their system.
So anyway, from this I have a few questions:
- Is this case a common story with all brokers, including both retail and ECN?
- Could I avoid this problem in future by using an ECN broker?
- Is it common for traders using other dealers/brokers to experience said delay? And does the 'straight through' nature of ECN brokers minimise such a delay?
Thanks in advance
________________________________________________________________
I have a question re ECN brokers vs retail dealers that someone may be able to help me with...
I like to trade forex on news/economic announcements. I currently trade through IG Markets - a retail dealer/market maker.
Last week I had a punt on the US GDP figures - that they would come in better than expected (which they did). So at 08:29:59 ET (1 second before the figures were to be released, I shorted AUD/USD. I sold 'x' contracts 'at market', to ensure my order was filled.
However, an error message came up saying the following "Rejected: Price no longer Valid". I was quite confused, as my sell order was a market sell order, which I presumed sold my AUD/USD contracts at the current market price.
I then rang IG Markets to ask what happened and they said that by the time the order reached them (I assume there was some sort of internet traffic delay of around 1 second or so) the market had moved around 5 pips from when I pushed the 'sell' button on my IG Markets trading platform. THey said that when this happens (movement of a certain number of points, in either direction - i.e. for or against your position), then they do not fill your order.
Again, I was surprised at this, as I thought by using a market order, I would be filled regardless. Basically, I believe the dealer does not want to cover the difference (the 5 pips) that came about as a result of the delay between when I pushed 'sell' to when they received the order in their system.
So anyway, from this I have a few questions:
- Is this case a common story with all brokers, including both retail and ECN?
- Could I avoid this problem in future by using an ECN broker?
- Is it common for traders using other dealers/brokers to experience said delay? And does the 'straight through' nature of ECN brokers minimise such a delay?
Thanks in advance