Experienced traders recognize the effects of global changes on Foreign Exchange (Forex/FX) markets, stock markets and futures markets. Factors such as for example interest rate decisions, inflation, retail sales, unemployment, industrial productions, consumer confidence surveys, business sentiment surveys, trade balance and manufacturing surveys affect currency movement. While traders could monitor this information manually using traditional news sources, profiting from automated or algorithmic trading utilizing low latency news feeds is a generally more predictable and effective trading method that will increase profitability while reducing risk.
The faster a trader can receive economic news, analyze the info, make decisions, apply risk management models and execute trades, the more profitable they are able to become. Automated traders are generally more successful than manual traders since the automation will use 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 emotion. To be able to take advantage of the lower latency news feeds it is essential to really have the right low latency news feed provider, have an effective trading strategy and the correct network infrastructure to ensure the fastest possible latency to the headlines source in order to beat your competition on order entries and fills or execution.
How Do Low Latency News Feeds Work?
Low latency news feeds provide key economic data to sophisticated market participants for whom speed is a premier priority. Whilst the remaining world receives economic news through aggregated news feeds, bureau services or mass media such as for example news those sites, radio or television low latency news traders count on lightning fast delivery of key economic releases. real raw news These include jobs figures, inflation data, and manufacturing indexes, directly from the Bureau of Labor Statistics, Commerce Department, and the Treasury Press Room in a machine-readable feed that is optimized for algorithmic traders.
One approach to controlling the release of news is definitely an embargo. Following the embargo is lifted for news event, reporters enter the release data into electronic format which can be immediately distributed in a proprietary binary format. The data is sent over private networks to many distribution points near various large cities round the world. To be able to receive the headlines data as quickly as you can, real raw news.com it is essential a trader use a valid low latency news provider that’s invested heavily in technology infrastructure. Embargoed data is requested by way of a source not to be published before a particular 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 precise lock-up period. Lock-up data periods simply regulate the release of most news data so that every news outlet releases it simultaneously. This can be achieved in two ways: “Finger push” and “Switch Release” are used to regulate the release.
News feeds feature economic and corporate news that influence trading activity worldwide. Economic indicators are used to facilitate trading decisions. The news is fed into an algorithm that parses, consolidates, analyzes and makes trading recommendations in relation to the news. The algorithms can filter the headlines, produce indicators and help traders make split-second decisions in order to avoid substantial losses.
Each country releases important economic news during certain times of the day. Advanced traders analyze and execute trades almost instantaneously once the announcement is made. Instantaneous 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 pick optimal entry and exit points.