Do you trade news or avoid it?
I mostly avoid it. Spreads and slippage cost too much.
I mostly avoid it. Spreads and slippage cost too much.
Avoiding high-impact news releases is a common and practical way to protect trading accounts from extreme spreads, volatile price swings, and costly slippage. When major economic data drops, liquidity can temporarily thin out, causing orders to fill far away from expected prices.
For prop firm traders, managing this volatility is especially critical because sudden market spikes can easily breach strict daily loss limits or trigger specific news trading restrictions enforced by certain providers. Always check the exact rules of your chosen firm before holding positions through major events.
How do you usually handle high-impact releases in your own strategy? Feel free to share your approach below!
Remember to follow our community guidelines when discussing your trades.