Factors like rate of interest decisions, inflation, retail sales, unemployment, industrial productions, consumer confidence surveys, business sentiment surveys, balance of trade and manufacturing surveys affect currency movement.
The faster a trader can receive economic news, analyze the info , make decisions, apply risk management models and execute trades, the more profitable they will become. analyze data and execute trades faster than a person's with no emotion. so as to require advantage of the low latency news feeds it's essential to possess the proper low latency news feed provider, have a correct trading strategy and therefore the correct network infrastructure to make sure the fastest possible latency to the news source so as to beat the competition on order entries and fills or execution.
How Do Low Latency News Feeds Work?
news traders calculate lightning fast delivery of key economic releases. These include jobs figures, inflation data, and manufacturing indexes, directly from the Bureau of Labor Statistics, Department of Commerce , and therefore the Treasury Press Room during a machine-readable feed that's optimized for algorithmic traders.
One method of controlling the discharge of stories is an embargo. After the embargo is lifted for happening , reporters enter the discharge data into electronic format which is instantly distributed during a proprietary binary format. the info is shipped over private networks to many distribution points near various large cities round the world. Embargoed data is requested by a source to not be published before a particular date and time or unless certain conditions are met.
News agencies even have reporters in sealed Government press rooms during an outlined lock-up period. Lock-up data periods simply regulate the discharge of all news data in order that every news outlet releases it simultaneously. this will be wiped out two ways: "Finger push" and "Switch Release" are wont to regulate the discharge .
News feeds feature economic and company news that influence trading activity worldwide. Economic indicators are wont to facilitate trading decisions.
Automated software trading programs enable faster trading decisions. Decisions made in microseconds may equate to a big edge up the market.
News may be a good indicator of the volatility of a market and if you trade the news, opportunities will present themselves. Traders tend to overreact when a report is released, and under-react when there's little or no news.
Advanced traders analyze and execute trades almost instantaneously when the announcement is formed . Automated trading can play a neighborhood 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.
Traders must know when the info are going to be released to understand when to watch the market. as an example , important economic data within the us is released between 8:30 AM and 10:00 AM EST. Since currencies span the world , traders may always find a market that's open and prepared for trading.
A SAMPLE of Major Economic Indicators
Consumer price level
Employment Cost Index
Employment Situation
Producer price level
Productivity and Costs
Real Earnings
U.S. Import and Export Prices
Employment & Unemployment
Where does one Put Your Servers?
The majority of investors that trade the news seek to possess their algorithmic trading platforms hosted as close as possible to news source and therefore the execution venue as possible.
The ideal locations to put your servers are in well-connected datacenters that allow you to directly connect your network or servers to the actually news feed source and execution venue. you would like to be close enough to the news so as to influence the releases however, close enough to the broker or exchange to urge your order in before the masses trying to find the simplest fill.
Low Latency News Feed Providers
The news feed is meant specifically for applications and is computer readable . Streaming XML broadcast is employed to supply full text and metadata to make sure that investors never miss an occasion .
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