Experienced traders recognize the consequences of global changes on Foreign Exchange (Forex/FX) markets, stock markets and futures markets. Factors such as interest rate decisions, inflation, retail sales, unemployment, industrial realrawnews.com productions, consumer confidence surveys, business sentiment surveys, trade balance and manufacturing surveys affect currency movement. While traders could monitor these details manually using traditional news sources, profiting from automated or algorithmic trading utilizing low latency news feeds is an often more predictable and effective trading method that can increase profitability while reducing risk.
The faster a trader can receive economic news, analyze the info, make decisions, apply risk management models and execute trades, the more profitable they can become. Automated traders are usually more successful than manual traders since 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 when compared to a human without emotion. In order to take advantage of the lower latency news feeds it is important to have the right low latency news real raw news.com feed provider, have a suitable trading strategy and the proper network infrastructure to guarantee the fastest possible latency to the news headlines 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 rest of the world receives economic news through aggregated news feeds, bureau services or mass media such as news the web sites, radio or television low latency news traders count 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’s optimized for algorithmic traders.
One way 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 is immediately distributed in a private binary format. The info is sent over private networks to several distribution points near various large cities around the world. In order to receive the news headlines data as quickly as you can, it is important a trader work with a valid low latency news provider that has invested heavily in technology infrastructure. Embargoed data is requested by way of a source to not be published before a certain date and time or unless certain conditions have now been met. The media is given advanced notice to be able to prepare for the release.
News agencies likewise have reporters in sealed Government press rooms during a definite lock-up period. Lock-up data periods simply regulate the release of all 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 based on the news. The algorithms can filter the news headlines, produce indicators and help traders make split-second decisions to avoid 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 manufactured possible through automated trading with low latency news feed. Automated trading can enjoy 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.