Yesterday (Oct 8, 2019) was one of these days, where the market was moving a lot due to the high frequency of breaking news relevant to the market. This required us to execute some fast spread bet trades. Let’s explain!
First, there was the not so positive news about the producer price index which made the market worry. Then we had the FED talk that spread some positive feelings and moved the market up to 2920. Shortly after that, there was the news that the US put visa restrictions on some Chinese officials. This immediately swayed the market to 2890.
It is crazy to realize how much news can affect market movements. Situations like this make it very hard to send our trading notifications. We need to execute the trades quickly, open and close sometimes in a matter of seconds. Here is an example of one of our fast spread bet trades we execute yesterday:
As you can see we had to open and close this spread bet trade within less than a minute. We work to improve our notification capabilities in our app. We consider these types of trades too dangerous to publish, as you need to act as quickly as we do.
As a rule of thumb, for situations like these, when the market fells that quickly usually it would recover a little bit before going down again. In some situation, it recovers even stronger. Make sure that you don’t overtrade. If you manage to catch it when it goes down and strike a buy/long bet take quickly the pips you can take and wait for a while to see how everything develops.
For the more risk-taker ready trades, if you manage to catch the bad news and the market is going down, you could open a short position but don’t get too greedy, close it on time. The higher the volume the smaller the pips we would recommend you to take, don’t expose yourself to high risk.
And remember, never use the full margin of your account. You would never be able to predict the movements every time, even with news available. This is always a recipe for disaster!
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