Foreign exchange trading news gives some traders the info that they need to make a lot of money with day trading or scalping techiques but for others it just seems to cause a big wreck. The spikes that may happen in currency values round the time of currency trading stories headlines look like they should offer great potential for profit, so what fails? Here are three things that can have you encircled in a loss-making trade.

check your broker’s conditions if you want to trade around news announcements. Some will mechanically close your currency trades on occasions of high volatility. Others won’t permit you to open a new trade.

Many brokers will increase the spread at these times and you may not be told by how much. Higher spread can imply that you finish up losing on a trade where you thought you made a profit, so it is exceedingly important to take this into account.

Slippage occurs when you do not get the price that you saw on your screen. With some market makers you can experience significant slippage even in comparatively stable times.

The same applies to stop and limit orders : you’re much less certain to get the price you were expecting at these times. This can mean a system that worked well on back tests has very different results in real time.