Scheduled announcements, such as interest rate decisions or inflation figures, can move prices sharply within seconds.
What can happen
- Spreads widen, so it costs more to trade.
- Slippage: an order fills at a worse price than you expected.
- Prices can jump past a stop level, so a stop is not a guarantee of the price you exit at.
Events to know about
Central bank rate decisions, inflation, employment reports and GDP releases are among the most closely watched. The economic calendar page explains how to read a calendar.
How traders handle it
- Check the calendar every morning.
- Stay out of the market, or cut size, before a big release.
- Avoid leaving pending orders sitting near a release.
- Plan for the worst fill, not the best one.
Some challenges restrict trading around news. If yours does, its rules say so.
This is general information, not advice. It does not consider your situation, and trading carries a high risk of loss.