Experienced traders recognize the results of global changes on Foreign Exchange (Forex/FX) markets, stock markets and futures markets. real raw news.com Factors such as 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 these records 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 may increase profitability while reducing risk. real raw news.com
The faster a trader can receive economic news, analyze the data, make decisions, apply risk management models and execute trades, the more profitable they are able to become. Automated traders are usually more successful than manual traders because the automation will make use of 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 the usual human without any emotion. To be able to take advantage of the reduced latency news feeds it is essential to really have the right low latency news feed provider, have a suitable trading strategy and the proper network infrastructure to ensure the fastest possible latency to the headlines source in order 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 high priority. While the rest of the world receives economic news through aggregated news feeds, bureau services or mass media such as news the websites, radio or television low latency news traders depend on lightning fast delivery of key economic releases. These generally 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’s optimized for algorithmic traders.
One approach to controlling the release of news is an embargo. After the embargo is lifted for news event, reporters enter the release data into electronic format which can be immediately distributed in an exclusive binary format. The data is sent over private networks to several distribution points near various large cities across the world. To be able to receive the headlines data as quickly as you are able to, it is essential a trader make use of a valid low latency news provider that’s invested heavily in technology infrastructure. Embargoed data is requested by way of a source never to be published before a specific date and time or unless certain conditions have already been met. The media is given advanced notice in order to prepare for the release.
News agencies also provide reporters in sealed Government press rooms during a definite lock-up period. Lock-up data periods simply regulate the release of news data so that every news outlet releases it simultaneously. This can be carried out in two ways: “Finger push” and “Switch Release” are accustomed to regulate the release.
News feeds feature economic and corporate news that influence trading activity worldwide. Economic indicators are accustomed to facilitate trading decisions. The news headlines is fed into an algorithm that parses, consolidates, analyzes and makes trading recommendations based upon the news. The algorithms can filter the headlines, produce indicators and help traders make split-second decisions in order to avoid substantial losses.
Each country releases important economic news during certain times of the day. Advanced traders analyze and execute trades almost instantaneously once the announcement is made. Instantaneous analysis is manufactured possible through automated trading with low latency news feed. Automated trading can play part of a trader’s risk management and loss avoidance strategy. With automated trading, historical back tests and algorithms are utilized to select optimal entry and exit points.