Wednesday, August 15, 2007

- Forex trading During Economic or Geo Political News Events


It any principal economic events and situations, like non-farm payroll, the currency price will change with a great gap immediately after this situation. Fundamentally the price changes just after the economic news and events occur which results a decrease in the Offers at the forex market on the current price.


Banks are able to create their offers principally from where it was before the events release. If someone has a resting order such as a buy stop or sell stop, those stop orders are accessed and turn into market orders and then are executed at the currently existed foreign currency exchange market price. A buy stop or sell stop could easily turn to the market order after the activation and it's filled at the current currency price which doesn't assure a certain order at a specified price. The volatile nature of the forex trading market makes the buy stop or sell stop order differs extensively from the real order price during principal market moves or gaps, during an economic release like non-farm payroll.

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1 comment:

Anonymous said...

People should read this.