Experienced traders recognize the effects of global changes on Foreign Exchange (Forex/FX) markets, stock markets and futures markets. Factors such as for example 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, realrawnews profiting from automated or algorithmic trading utilizing low latency news feeds is an often more predictable and effective trading method that will 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 more profitable they could become. Automated traders are often more successful than manual traders as the automation will use 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 with no emotion. To be able to make the most of the lower latency news feeds it is vital to have the right low latency news feed provider, have a suitable trading strategy and the correct network infrastructure to guarantee the fastest possible latency to the news source in order to beat your competitors on order entries and fills or execution.
How Do Low Latency News Feeds Work? real raw news.com
Low latency news feeds provide key economic data to sophisticated market participants for whom speed is a premier priority. As the rest of the world receives economic news through aggregated news feeds, bureau services or mass media such as for example news 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 approach to controlling the release of news is an embargo. Following the embargo is lifted for news event, reporters enter the release data into electronic format which is immediately distributed in a proprietary binary format. The info is sent over private networks to many distribution points near various large cities round the world. To be able to receive the news data as quickly as possible, it is vital a trader use a valid low latency news provider that has invested heavily in technology infrastructure. Embargoed data is requested by a source never to be published before a particular date and time or unless certain conditions have now been met. The media is given advanced notice in order to prepare for the release.
News agencies also have reporters in sealed Government press rooms during a definite lock-up period. Lock-up data periods simply regulate the release of most news data so that every news outlet releases it simultaneously. This can be achieved 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 news 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 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 an integral part of a trader’s risk management and loss avoidance strategy. With automated trading, historical back tests and algorithms are utilized to pick optimal entry and exit points.