Experienced traders recognize the consequences of global changes on Foreign Exchange (Forex/FX) markets, stock markets and futures markets. Factors such as for instance 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 these records manually using traditional news sources, profiting from automated or algorithmic trading utilizing low latency news feeds is an often more predictable and effective trading method that may 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 could become. Automated traders are often more successful than manual traders as the automation will make use of a tested rules-based trading strategy that employs money management and risk management techniques. real raw news.com The strategy will process trends, analyze data and execute trades faster when compared to a human with no emotion. In order to take advantage of the low latency news feeds it is vital to have the right low latency news feed provider, have a suitable trading strategy and the right network infrastructure to guarantee the fastest possible latency to the news source in order to beat your competitors 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. While the remaining portion of the world receives economic news through aggregated news feeds, bureau services or mass media such as for instance news web sites, radio or television low latency news traders depend on lightning fast delivery of key economic releases. real raw news These generally 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 way of 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 that will be immediately distributed in an exclusive binary format. The information is sent over private networks to many distribution points near various large cities across the world. In order to receive the news data as quickly as you possibly can, it is vital that the trader make use of a valid low latency news provider that’s invested heavily in technology infrastructure. Embargoed data is requested by a source to not 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 defined lock-up period. Lock-up data periods simply regulate the release of all news data so that each news outlet releases it simultaneously. This can be done in two ways: “Finger push” and “Switch Release” are accustomed to regulate the release.
News feeds feature economic and corporate news that influence trading activity worldwide. Economic indicators are accustomed to facilitate trading decisions. The news headlines is fed into an algorithm that parses, consolidates, analyzes and makes trading recommendations in relation to the news. The algorithms can filter the news, produce indicators and help traders make split-second decisions to prevent 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 created possible through automated trading with low latency news feed. Automated trading can enjoy an integral 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.