Professional traders understand the effect of global developments in Foreign Exchange (Forex/FX) markets as well as stock markets and futures markets.
Things like interest rate decision-making and retail sales, inflation industrial productions, unemployment, consumer confidence surveys as well as business sentiment surveys manufacturing and trade balance surveys influence the direction of currency movements. Although traders can monitor the data manually by using the traditional sources of news, reaping from algorithmic or automated trading with low latency news sources is a more reliable and efficient method of trading which can boost profits while minimizing risk like
The quicker a trader is able to take in economic news, analyse the information, make decisions, use risk management strategies and then execute trades and trades, the more profitable they will become.
Automated traders tend to be more profitable than manual traders due to the fact that automated trading system employs a tried and tested rule-based trading strategy that incorporates the management of money and risk methods.
The method will be able to process patterns, analyse data and make trades more quickly than a human , without emotion. To make the most of lower latency feeds,, it is vital to select the best low latency feed provider. employ a well-planned trading strategy , and the right network infrastructure that will ensure the fastest possible latency to your news source to outdo the competition in orders and fills as well as execution.
News feeds that are low latency deliver important economic information to highly sophisticated market participants for who speed is the important factor. While the majority of the world is provided with economic news via combined news feeds, bureau services, or mass media, such as news websites as well as radio and television, low latency news traders are guaranteed rapid delivery of important economic news releases. This includes employment figures, inflation data manufacturing indexes, and more, straight taken from Bureau of Labor Statistics, Commerce Department, and the Treasury Press Room in a machine-readable feed optimized to work with algorithmic traders.
One method to limit the publication of information is through embargo. When the embargo is lifted for news events reporters input the release information into electronic format, which is then distributed in an exclusive binary format. The data is then transmitted over private networks to various distribution points in major cities across the globe. To ensure that you receive the news as swiftly as is possible,
it is vital that traders use an acceptable low latency news source who has invested in the technology infrastructure. Data that is blocked is requested by the source to not be released before a specified time and date, or until certain conditions are fulfilled. Media is provided with advance notice to be prepared for the publication.
Also, news agencies have reporters working in Government press rooms for a specified lock-up time. Lock-up periods regulate the publication of all news information to ensure that each news agency releases it at the same time. This can be accomplished by two methods: “Finger push” and “Switch Release” can be used to regulate the release.
News feeds include business and economic news that affect the trading activities across the globe. Economic indicators are utilized to help traders make better decision-making. The news feeds an algorithm which parses data, analyzes, and consolidates and gives trading advice based on the news. The algorithms are able to filter news, create indicators and assist traders in making rapid decisions to avoid massive losses.
Automated trading software programs allow quicker decisions in trading. Microseconds-fast decisions could provide a substantial edge in the marketplace.
News is an excellent indicator of the market’s volatility and if you are trading the news, chances will arise. The traders tend to react too strongly when news reports are issued, and less when there is a lack of news. Machine-readable news offers historical data via archives which allow traders to check price movements against certain economic indicators.
Every country announces important economic information at specific periods of the day. Advanced traders analyse and trade almost instantly once the announcement is announced. The ability to analyze trades instantly is provided by automated trading using a low latency news feeds. Automated trading could be as a component of the risk management of a trader’s loss prevention strategy. Automated trading is a method of analyzing the backtests of the past and algorithms are employed to choose the most optimal exit and entry points.
The traders must be aware of when the data is released so that they know when to watch the market. For instance, the most important economic data from the United States is released between 8:30 am and 10:00 am EST. Canada releases data between 7:00 until 8:30 AM. Because currencies are spread across all over the world, investors can always locate a market that is open and ready to trade.
Thomson Reuters uses proprietary, modern technology to create an extremely very low-latency feed. The news feed has been specially designed for use in applications and is machine-readable. Streaming XML broadcasts are used to generate the full text and metadata needed so that the investors don’t be unable to catch an event.
A different Thomson Reuters news feed features macroeconomic news, natural disasters and violence across the country. A detailed review of news will be released. When the category crosses an upper limit that the investor’s trading and Risk management systems are alerted to initiate the entry and exit moment from the market.
Thomson Reuters has a unique advantage on global news in comparison to other companies, and is among the top well-known business news companies worldwide, even if it is not the most well-known out of United States.
They also have the benefit of adding worldwide Reuters News in their feed, in addition to third-party newswires as well as Economic data from as well in the United States and Europe. the University of Michigan’s Study of Consumers report is an important news event that provides data every two months. Thomson Reuters has exclusive media rights to The University of Michigan data.
Other news sources with low latency comprise: Need to Know News, Dow Jones News and Rapidata that we will explore more in the future when they make information on their services more readily available.
A news feed could suggest a shift in the rate of unemployment. To make a situation, the unemployment rate could be positive. Analyses of the past could show that the increase isn’t caused by seasonal changes. News feeds reveal that buyer confidence is growing due to the drop of unemployment. Recent reports give a clear indication that unemployment will stay at a low level.
The the analysis could indicate that traders should sell short the USD. The algorithm might decide that the USD/JPY pairing will yield the highest gains. Automated trades are completed when the target is attained and the trade will continue to run on autopilot until it is complete.
The dollar is likely to be expected to continue falling despite reports of a rise in unemployment reported by sources like the feeds. Investors need to be aware that many factors impact the price that affect the United States Dollar. The unemployment rate might decrease however the overall economy might not be improving. If the larger investors don’t change their opinions about the dollar, the dollar will remain in decline.
The biggest players usually make their decisions before all of the traders, whether small or retail. Big-name decisions can impact the market in a surprising manner. In the event that the investment decision was based using only information from unemployment rate, the assumption could be wrong. Non-directional bias is based on the assumption that any news of significance concerning a nation will result in an opportunity for trading. Trading accounts with directional bias cover every economic indicator possible, as well as responses from the big market participants.