There are many news trading systems out there. Many people attempt to trade the initial news spike after a data release. Price can move one direction very quickly seconds after a new release, leaving a good opportunity to trade. The move is often bigger if there is a surprise in the numbers. I remember a shock interest rate hike by the bank of england in January 2007. The pair GBP/USD rose around 150 in less than a minute!
If you want to trade news spikes it is important to have a very fast news feed that can get the numbers to you as quickly as possible, before the market moves. An example of a budget news feed is Tradethenews. Bloomberg and Reuters both offer professional news feed, they are not cheap though.
It also important to have a broker that has very fast execution around the news releases. Many retail forex brokers do not like news traders, so it is important to find a broker that best suits your needs. Due to the high volatility around the news releases execution on a live account is often very different to that of a demo account.
ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.
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