Experienced traders recognize the effects of global changes on Foreign exchange (Forex/FX) markets, stock markets and futures markets. Factors such as rate of interest decisions, inflation, retail sales, being out of work, industrial stage productions, consumer confidence surveys, business emotion surveys, trade balance and manufacturing surveys affect currency movement. While traders could monitor this information hand using traditional news sources, benefiting from automated or algorithmic trading utilizing low latency news nourishes is an often more predictable and effective trading method that can increase earning while reducing risk.
The faster a investor can receive economic news, analyze the data, make decisions, apply risk management models and execute trades, the more profitable they can become. Automated traders are generally easier than manual traders because the Black Cube automation uses a tested rules-based trading strategy that employs money management and risk management techniques. The strategy will process trends, analyze data and execute trades faster than the usual human with no feeling. In order to take advantage of the low latency news nourishes it is essential to achieve the right low latency news feed provider, have a proper trading strategy and the correct network structure to ensure the fastest possible latency to the news source in order to beat the competition on order entries and fills or performance.
How do Low Latency News Nourishes Work?
Low latency news nourishes provide key economic data to sophisticated market participants for whom speed is a the goal. While all of those other world receives economic news through aggregated news nourishes, agency services or media such as news web sites, radio or television low latency news traders count on super fast delivery of key economic releases. These include jobs figures, inflation data, and manufacturing indexes, directly from the Agency of Labor Statistics, Commerce Department, and the Treasury Press Room in a machine-readable feed that is optimized for algorithmic traders.
One method of controlling the release of news is an embargo. After the embargo is removed for news event, reporters enter the release data into electronic format which is immediately distributed in a exclusive binary format. The data is sent over private networks to many distribution points near various large cities around the world. In order to obtain the news data as quickly as possible, it is essential that a investor use a valid low latency news provider that has invested heavily in technology structure. Embargoed data is requested by a source not to be published before a certain date and time or unless certain conditions have been met. The media is given advanced notice in order to prepare for the release.
News agencies also have reporters in sealed Government press rooms during a defined lock-up period. Lock-up data periods simply regulate the release of all news data so that every news outlet releases it simultaneously. This can be done in two ways: “Finger push” and “Switch Release” are used to manage the release.
News nourishes feature economic and corporate news that influence trading activity worldwide. Economic indicators are used to facilitate trading decisions. What is this great is given into an criteria that parses, consolidates, analyzes and makes trading recommendations based on what is this great. The algorithms can filter what is this great, produce indicators and help traders make split-second decisions to avoid substantial losses.
News is a good indicator of the volatility of a market and if you trade what is this great, opportunities will show themselves. Traders tend to overreact when a news report is released, and under-react when there is very little news. Machine legible news provides historical data through archives that enable traders to back test price movements against specific economic indicators.
Each country releases important economic news during times of the day. Advanced traders analyze and execute trades almost instantaneously when the headline is made. Quick analysis is made possible through automated trading with low latency news feed. Automated trading can play a part of a trader’s risk management and loss avoidance strategy. With automated trading, historical back tests and algorithms are utilized to select optimal entry and exit points.