Looking for a broker to perform scalping Trade?

Trading on the news (News Time Trade) is one of the unique areas of Forex.

This type of trading provides an opportunity for decent earnings not only for experienced but also for novice traders.

Moreover, the monthly profit can even be 50-100% of the deposit.

A successful trading result largely depends on the correct understanding of the Forex news trading strategy.

It is quite accessible to everyone, even a beginner. By gaining trading experience, a trader enters the market more confidently, finds a way out of non-standard situations and minimizes possible losses in unsuccessful transactions.

To be able to perform Scalping trade correctly and earn a decent profit, it is important that you choose a proper that supports traders to earn on News Time.

Exness, an online Forex and CFD broker with one of the largest trading volumes in the world has almost a perfect solution (account type, platform, condition, etc,.) for you.

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How to set orders before news release

To trade on important news, you should register with a broker and find a suitable news platform with the necessary information.

In this article, we recommend using EXNESS’s mobile platform which has everything you need to prepare for the news time trading.

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The nuances of trading itself lie in the correct placement of pending Buy Stop and Sell Stop orders.

We should not forget about safety Stop Loss and Take Profit, fixing the profit. And to get a good profit, you should choose only significant news events.

Through Exness’s mobile app, you can also directly refer to the upcoming news events while checking the current support and resistance lines on the chart.

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Strategies for trading on the news normally require the placement of pending orders 5 minutes before the release, at a specific distance from the current price value of the price.

It is no coincidence that this News time Trade method in a literal interpretation sounds like “overlapping with orders”.

It is desirable to make the initial lining far away, since shortly before the news events, price jumps can occur that can activate any of the pending orders.

Pending order installation experience comes with time. The current market situation is also taken into account.

Where to set Stop Loss and Take Profit

Safety stop orders are placed as close to orders as possible.

Usually, the broker allows you to set stops at 3-5 points from them.

Take Profit is placed at the level of 10-40 points from orders.

You can calculate the distance of orders from the current price value.

It is mandatory to set Trailing Stop, which automatically pulls up Stop Loss.

It is not necessary to hope for its 100% working trailing stop, but in certain cases it really helps the trader.

One of the indicators most beloved by traders – Non Farm Payrolls – sets the dynamics of movement at 70 points, and sometimes much more (up to 110 points).

Somewhere 5 minutes before the release, placed orders should be carefully pulled up to the current price, and one minute before the start, this distance should be about 10-13 points.

With regards to the timeframe that the trader chooses for trading, it can be anything from 5 to 30 minutes.

The main condition is the convenience of visual observation of the asset chart and the availability of control over placed orders.

A price surge is possible a few tens of seconds before the news release.

The shadow of the candle may well catch one of the orders and close it at a loss.

However, you should not worry, because the losses for the trader will be minimal (Stop Loss at a distance of about 3 points).

The most important price action happens second by second at the scheduled time.

The figure shows the moment of news release on the ECB interest rate.

The price managed to pass 150 points in a short period of time.

Using the Forex strategy described above on the news, with the correct placement of orders, it was possible to earn a decent profit, both on buying and selling an asset.

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Release time and options

As a rule, the release of news events itself is accompanied by a powerful price movement.

With their favorable development, the price should hook one of the orders, go further and cross Take Profit.

In this case, the transaction will close with a profit.

It often happens that after that the price reverses follows in the opposite direction, activates the second pending order, closing it with a profit.

However, there are situations in which a trader must act quickly and correctly:

• The price impulse, having activated the order, went further, but did not reach Take Profit. In this case, Stop Loss should be moved to zero or to the breakeven level. The market, by inertia, must travel a certain distance, reaching for the take profit. Some traders, having already initially received a profit, try to fix it and close the order immediately. It is possible to move the pending order closer to the price so that the distance between them is equal to 5 points. At the same time, you can remove Take Profit and monitor the growth of profit;
• It is possible to jump over the price of all orders. A gap is clearly observed in this case, and orders are highlighted in yellow or green. There is a clear dishonesty of the intermediary between traders and the market here. Orders must be closed immediately you may need to consider changing the broker;
• A unique case (rare luck for a trader) — the price does not move, the terminal freezes. When trading on the news, it is advisable to use not one terminal, but several, with trading systems of different brokers. Having assessed the situation with the price movement on another screen, you need to open a position in the required direction (buy or sell). After awakening the “asleep” terminal, the newly opened position will be closed with a decent profit;
• Weak news release does not cause significant market changes. After 10 seconds, it is more prudent to close orders.

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Significant news affecting the market movement

All events taking place on Forex are easy to track in the economic calendar.

Only certain news during various trading sessions can have the most significant impact on the market:

• Non Farm Payrolls – Data on the level of employment in the United States, except for the agricultural sector. Assets related to the US currency — USD;
• Announcement of rates by the Central Bank of England;
• Results of the meeting of the National Bank of Great Britain on credit and financial policy;
• ECB decisions on the main interest rate;
• Interest rate level from the European Central Bank;
• Result of the Reserve Bank of New Zealand at the main interest rate
• The volume of employment in Canada

There are 3 types of data in the release:

1. Information for the last month;
2. Results predicted by analysts;
3. Actual data published for the reporting period.

The greater the difference between the predicted and actual results, the more dynamic the price momentum on the chart.

The size of the deposit for traders can be different.

For trading on Forex, any amount is acceptable, even cents. However, to get a good profit, you should have at least $2,000.

Through Exness’s mobile app, you can access the economic calendar directly.

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Importance of choosing a trading broker

When trading on important news, this option is of great importance for a trader.

The reliability and honesty of an intermediary providing services for conducting trading operations are always relevant.

Unfortunately, most brokers seek to prevent a trader from making money on a release.

The choice of a broker should be based on a number of basic criteria:

• The absence of requotes at the time of closing the order, when there is high volatility in the market;
• No slippage (execution of an order at a price different from that specified by the trader);
• Absence of premature closing of the position (Stop Loss breakdown);
• Inadmissibility of restrictions when placing orders before the release, neither in time nor in distance from the current price value;
• A conscientious broker does not excessively increase the spread at the time of release.

Considering the all of the above conditions, Exness has been a popular venue among ttraders all over the world.

Trading on Forex news is a very profitable way of earning.

However, you should always remember about the rather high risk that is present in this type of trading.

Only taking into account all the recommendations mentioned above, the trader will have a chance of success.