Trading around big news

Some scheduled events move markets several times their normal range in seconds: inflation figures (CPI), jobs reports, interest rate decisions and central bank speeches. These are marked high impact on the calendar.

What actually happens

In the seconds around a big release:

• Spreads widen, sometimes many times their usual size.
• Price can gap, jumping from one level to another with no trading in between.
• Stops fill late, at the next available price, which can be far beyond your stop.

So a trade risking 1% can lose much more if news hits while it's open.

Hold time matters

A news release doesn't have to be happening when you enter. If you're likely to still be in the trade when it lands, it affects you. The checker estimates a typical hold time for your timeframe and warns you when big news for your currencies falls inside it.

Prop accounts

Many prop firms ban opening or closing trades for a few minutes either side of high impact news, and some count news in every currency, not just the ones you trade. A stop or target filling inside that window can count as a breach. Prop mode on this site checks your firm's rule for you.

Key points

• Check the calendar before every trade.
• If big news lands inside your likely hold time, reduce size, adjust, or wait.
• On prop accounts, know your firm's exact news rule.