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 this information manually using traditional news sources, profiting from automated or algorithmic trading utilizing low latency news feeds is a generally more predictable and effective trading method that could increase profitability while reducing risk.
The faster a trader can receive economic news, analyze the data, make decisions, apply risk management models and execute trades, the real raw news youtube more profitable they can become. Automated traders are often more successful than manual traders as the automation will work with a tested rules-based trading strategy that employs money management and risk management techniques. The strategy will process trends, analyze data and execute trades faster than a human without emotion. To be able to take advantage of the lower latency news feeds it is essential to truly have the right low latency news feed provider, have a proper trading strategy and the proper network infrastructure to ensure the fastest possible latency to the news source to be able 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. Whilst the remaining realrawnews 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 rely on lightning fast delivery of key economic releases. These 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 method of controlling the release of news can be an embargo. After 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 info is sent over private networks to many distribution points near various large cities around the world. To be able to receive the news data as quickly as you can, it is essential a trader work with a valid low latency news provider that’s invested heavily in technology infrastructure. Embargoed data is requested with a source never to be published before a particular date and time or unless certain conditions have been met. The media is given advanced notice to be able to prepare for the release.
News agencies also provide reporters in sealed Government press rooms during a precise lock-up period. Lock-up data periods simply regulate the release of most news data so that each news outlet releases it simultaneously. This can be done in two ways: “Finger push” and “Switch Release” are used to regulate the release.
News feeds feature economic and corporate news that influence trading activity worldwide. Economic indicators are used to facilitate trading decisions. The 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 when the announcement is made. Instantaneous analysis is made possible through automated trading with low latency news feed. Automated trading can play an integral part of a trader’s risk management and loss avoidance strategy. With automated trading, historical back tests and algorithms are utilized to choose optimal entry and exit points.