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As much as we knew about the news trading, we should know all about the risks that we may face,

Slippage


Is the difference between the price a trader expects to be filled at, and the price they are actually filled at.
As an example, the Market volatility can increase geometrically during news releases, which means the price can move from 5 pips up to 30 pips (or even 50 pips or more) in a few minutes or even a few seconds. As you are trying to get your order filled during this volatility of the news, you will probably get filled at a different price than what you have expected. This is especially risky with limit entry orders.


ORDER FREEZE


Some brokers do not encourage the limit and market orders so they prevent it right before a major news release. This usually occurs with brokers who guarantee fixed spreads. This is why your trading platform “locks up, So as to save their money when the spread is too wide, as, if they offered them with their fixed spreads, they would lose a lot of money.


VOLATILITY/ WHIPSAWS


During the major news reports and economic releases the market can swing 15 to 50 pips in a second! News volatility can be extremely dangerous, even for experienced and professional traders. You may successfully catch the strong initial move and make a lot of money, but like so many times as usual in these situations, it can turn against you into a losing trade in a second.


SPREADS


Some brokers may guarantee execution but no one can guarantee spreads, when news events take place you will see spreads widen dramatically from 4 up to 13 pips in a very small time as low as 1 second. And in case if you want to on small profits like from 5 up to 10 pips, this will reduce your chances of profitability and possibly keep you in a losing trade.

 
 
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