News Trader

Definition - What does News Trader mean?

A news trader is a currency trader who primarily trades around important events. News traders can pick and choose their preferred news, but some common examples include economic releases, political elections and so on. News traders may enter a position prior to the announcement or at anytime during the market reaction.

ForexDictionary explains News Trader

News traders face some basic challenges because the volatility around a news event tends to lead to slippage and wider spreads. The price action leading up to and following a news event can change direction quickly, triggering carefully placed orders sooner than expected. Consequently, news traders must have a set plan either to make profits off the volatility or a strong idea of the eventual direction following the news event in order to trade effectively.
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