ruseneca
Master Sergeant
- Messages
- 348
What you are saying is slippage. Slippage is common especially during big news release. There are some brokers that give bigger slippage than others. You can avoid those brokers. And for news trading you need good risk management policy. Without that it's not a good idea to gp for news trading. If I don't have proper weapon and shield, why would I go to the battle field.
I've given an example with a price gap but yes, slippage is very common, especially when it comes to ECN brokers and you are trading with 1 standard lot or more. In this case, the order is routed to the market for exectuion and the slippage might be very high, let's say 5-10 pips, it depends on the liquidity, if you are lucky, order might now be slipped!
As for the gaps, I usually wait for the news to pass. In the first minutes robots are those who are trading, so everything is possible. There are also brokers, market makers, that close the order at the set SL and TP, disregarding of the gap. So, this is another way to cope with gaps but I don't recommend it to newbies.