Can I trade during news events?

Yes, we allow you to trade during economic news events, but there are a few important considerations to keep in mind. While the opportunity to trade during such events is available, we prioritize consistency in your trading over short-term volatility created by major economic news releases.

What You Need to Know:

When trading during high-impact news events, such as interest rate decisions or economic reports, be mindful that these events can lead to significant price movements, often causing volatility spikes. If your strategy is based on exploiting these price fluctuations during the news event, we may exclude any profits made from these trades during your Challenge or trader account review.

This helps ensure that your profitability is based on your consistent trading ability, rather than relying on the market’s reaction to news events. For example, any trades executed within 10 minutes before or after major news events may be scrutinized or excluded in the review process.

Key News Events to Watch:

1. FOMC Interest Rate Decisions

The Federal Open Market Committee (FOMC) meets regularly to set interest rates in the U.S. economy. Interest rate changes or policy announcements can have a massive impact on forex pairs and indices, particularly the USD.

2. Non-Farm Payrolls (NFP)

NFP is one of the most significant reports released every month, detailing the total number of paid workers in the U.S. This report has a direct influence on the USD, and the market’s reaction can be quite volatile.

3. Inflation Data (CPI)

Consumer Price Index (CPI) data reveals how much prices have increased for goods and services, providing insight into inflation. Inflation data can affect central bank policies and the value of a currency.

4. Central Bank Announcements

Key announcements from central banks like the European Central Bank (ECB), Bank of England (BoE), or the Bank of Japan (BoJ) can significantly influence market conditions. Market participants often anticipate these announcements, leading to increased volatility.

5. GDP and Retail Sales Data

Gross Domestic Product (GDP) measures a country’s economic performance, and Retail Sales data shows consumer spending, both of which influence broader market trends and trader sentiment.

How to Stay Informed:

To stay on top of important news releases, always check the economic calendar in your trader dashboard at app.pivex.com. It’s a helpful tool for preparing in advance, as it lists all major upcoming news events and their expected impact on the markets.

Tips for Trading During News Events:

Use caution: Major news events can cause sudden and unpredictable market movements, so if you trade during these events, consider using tighter stop-loss orders to manage potential risks.

Avoid relying solely on news trading: We value consistent trading strategies. Over-relying on news events can often lead to inconsistent performance.

Monitor spreads: Keep an eye on spreads, as they may widen during high-volatility periods, impacting your trading costs.

While trading during economic news events can be a strategy, we encourage consistent, disciplined trading to ensure that you manage risk effectively and avoid relying too heavily on short-term volatility. By following these guidelines, you can participate in news-driven trades while maintaining a steady, sustainable trading approach.

For more detailed information on economic events and to monitor live updates, check your economic calendar in the dashboard.

If you have any questions about how trading during news events affects your challenge, feel free to reach out to us!