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Hello!
So i trade news releases on spot, but on big releases like NFP, spreads will go crazy for a while and it can often ends up costing me an arm an a leg to trade.
My question is simple, will moving to futures be beneficial on my trade costs during releases?
info:
1/i have traded futures quite a lot, but not on news, never seen big spreads during semi-stable prices
2/My current broker (ic markets ecn) will not show lower spreads even 1-2 minutes after the release so i don't even have a trade opportunity, so there is also an opportunity I account for.
Thank you for reading this
Can you help answer these questions from other members on NexusFi?
Forex- not centralised- spread widening is nature of market, banks do not accept any trades during news or have a liquidity cap
Futures- centralised- all trades go through a single exchange, liquidity does not dry up easily
Create a simple indicator to plot the forex spread or the futures bid/ask spread every second before and after new releases. You might find that futures are best during new releases, and maybe forex is better other times. Or vice versa. And different markets might behave differently, too.
trade the first few mins of the NY open if you want volatility, trading the news is a guess at best and 90% of the time if you wait until the retrace after the first few minute's in the news you can get a much much better fill.
0.02
-P
"Truth is not what you want it to be; it is what it is, and you must bend to its power or live a lie"-Miyamoto Musashi
Ofcource i am trading after* the news on retracements, generally, didnt have spread problems until i started trading the NFP, and i saw a continuation on spread divergence. Thanks for your reply though
Thanks for the idea, i am currently forward monitoring spreads on the forex platform mt4 through an indicator and researching online data i found on OANDA, but can seem to find an easy way to do this on futures. Do you have any recomendation about where i should search or what platform should i use?
