Usually, no, not unless you have a specific plan for it. High-impact news releases can cause sudden spikes, wide spreads, slippage and gaps through your stop. A signal sent minutes before a major release can be filled at a very different price from the one quoted, or stopped out by volatility that has nothing to do with the original setup.
Why news makes signals riskier
- Spreads widen. Entry and exit costs can jump for a few seconds or minutes, which hurts tight stops especially.
- Slippage. Your stop is not a guaranteed exit price. In fast markets, you may get filled well beyond it.
- Whipsaws. Price often spikes one way, reverses, then settles. Technical levels in a signal can be ignored briefly.
- Stale signals. If you see a signal late, the move may already be done and the risk-reward is worse than stated.
A practical approach
- Check the economic calendar before acting on any signal. Focus on releases that affect the pair you're trading, such as central bank rate decisions, employment reports and inflation data.
- Stay out around the event. Many traders avoid new entries from roughly 15-30 minutes before until after the first volatile stretch. There is no magic number, so decide your own rule and stick to it.
- Review open trades. Consider whether to close, reduce size or accept the risk. Moving a stop to breakeven doesn't protect you from slippage.
- Cut position size if you do trade it. Size so that a worse-than-planned loss is still tolerable. See how much to risk per trade and how to calculate lot size.
- Ask your provider whether it posts signals around news and how it handles open trades. Confirm this on the official site rather than assuming.
Recommended for youForex Risk Management and Position Sizing for Signal TradersWho might trade news anyway?
Experienced traders with fast execution, tested rules and money they can afford to lose sometimes do. Beginners and small accounts generally have more to lose than gain, since one bad fill can be a large share of the balance. If that's you, trading with a small account covers why survival comes first. Scalping signals are especially sensitive to spread changes, so read our scalping guide before taking them near a release.
No approach removes the risk, and forex trading can lose you money. If you're unsure whether leveraged trading suits your finances, consider speaking with a qualified financial professional.
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Comparing signal services? Check how each handles news events, and confirm current details on its official site before you subscribe.
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