Have you ever had one of those trading setups that fail in dramatic fashion? One reason for that dramatic flop could have been due to a scheduled news event.
Economic news releases have the ability to drastically affect the financial markets. Depending if market expectations are in line with the economic news or not, this can originate price action to oscillate rapidly, increasing volatility and widen trading spreads.
It is important to remember that spreads are variable, meaning they will not always remain the same and will adjust as liquidity providers change their pricing.
Traders might also want to note that increased volatility, often caused by news, brings periods of less liquidity in the market, potentially making it difficult to open or close positions at desired prices due to the widening of spreads causing slippage.
Therefore, if we want to avoid unnecessary losses either by market volatility, spreads and slippage, we must be aware at all times of the dates and time of Economic news releases
So get up to date with ActivTrades Economic Calendar.