Strategies
Trading Around News and Economic Events
High-impact news events create volatility spikes — most traders are better served by reducing exposure, not increasing it.
Key rules
- Mark high-impact news events on your calendar before trading
- Spreads widen and slippage is common during announcements
- Wait for the initial volatility to settle before entering post-news
- Reduce position size before scheduled high-impact events
- The post-news trend often continues for hours or days
Economic events (NFP, CPI, FOMC, earnings) create sharp price moves. Spreads widen dramatically during announcements and stop-loss slippage is common. Most traders are better served by reducing position size before scheduled news.
The post-news trend often continues for hours or days — waiting for the initial volatility to settle and trading the established direction is a reliable approach.