Exit during news?

Hello,

- News are coming, I havent entered yet. I wait some time till the news are past and enter. Why not enter during the news?
1. The gap between ask and bid (spread) could be big.
2. The difference between entry price and current price is too low. Therefore the price could go against the trade very fast and the lag could be great.

- But, what if I am already trading and some news are coming?

Why is there a difference?
1. The spread doesnt matter anymore, because the spread was already payed.
2. The difference between entry price and current price can be big. It can be used as a safty cushion, where the price moves during the news, without reaching the entry price.

But what is if the current price is near the entry price? Lets say it is 10 pips away from the entry price. There seems that there is not enough difference which can protect from big fast moves. The SL could be triggered very late.

So, what is more dangerous, the spread or the slippage lag, or both? What is your experience and how do you deal with such situations?

Thanks for your input.

I didnt know that spread can affect the trade also after the entry. This is logical if you think about it. If the spread widens and you are currently trading, the ASK price is relevant for the exit.

So there could be two strategies:
1. Exit before the news.
2. Moving the SL, so increase the possible loss.
3. Get totally rid of the SL.

I think 3. is a wrong decision.

I have read about spread of up to 150pips during NFP on OANDA. I am a swing trader and even for me this is too much. What is your experience with the broker TICKMILL and there behaviour during news (or any other broker)?

Its simple.
Scalpers should use flexible spread and avoid trading during news.
Swing Traders and above should use fixed spread to stay during news when the spread widens.

You answered it all by yourself, great

Additionally you might want to read a bit about order types to understand that it's not about entry or exit but market order, limit order or broker specific features to control your maximum slippage. Once you understand all that you'll probably want to get rid of metatrader

That aside, scalping high(est) impact news like NFP is madness. I do believe that crap "brokers" use artificial spread widening but even on proper brokers you can't be sure that the spread will never kill your high-leverage trades because it actually is not in the control of that broker. Spread is simply the difference between two prices, one for selling the other for buying and these prices may be quoted by different (independent) market participants.

The spread always matter

scalper trader must be consistent in use of the opportunities in the market, although it took a little profit basis, but if you can consistently increase his profit will also optimally

There are economic news that have high impact that should the news release be much deviated from forecast there should be big movement in the market. Plan your trade, trade your plan, according to news.

There are three very good reasons I can come up off the top of my head why one should avoid news trading:

1. Big spreads
2. Whipsaws
3. Unexpected results that drive the market in the opposite direction of one's open positions.

HI,
how can i know sell or buy , when news are released . example when are good news about usd , in this case i can sell or buy ( nzd/usd ) ??
thanks

During news release market comes with big volatility , which can make your trade hitting stop loss although market again touch your take profit level but many time it happens that it hit your stop loss first.
so during the news time this is very important to take care of the trade.

Start studying fundamental analysis. It's really not something that can be explained in a few words. Also, Forex Factory's Forex calendar actually provides explanations regarding the effect news would have. You need to click on the little folder icon below the "Detail" option to see it.

Thia was a news event today of gbp.
Who made money out of this.
Pls share your experience. I made 60 pips