Currency trading stories gives some traders the info that they have to make a large amount of cash with day-trading or scalping techiques, but for others it just seems to cause a big wreck. The spikes that may happen in currency values around the time of foreign exchange trading stories announcements look like they should offer great potential for money so what goes pear shaped? Here are three things that may have you besieged in a loss-making trade. Some will mechanically close your currency trades at times of high volatility. Others won’t allow you to open a new trade.

Many brokers will increase the spread at these times and you may not be told by how much. Higher spread can imply that you finish up losing on a trade where you thought you made a profit, so it is very important to take this into account. The higher spread can be anywhere up to five times the ordinary spread for that currency pair.

Slippage occurs when you do not get the price that you saw on your screen. It is commoner with some brokers than others because it is dependent on their enterprize model and whether they need to cover the risk represented by your trade. Around the time of a currency trading news release it is even more likely as the price can change in the split 2nd between you seeing it on screen and clicking a button. The same is applicable to stop and limit orders : you are far less likely to get the price you were expecting at these times.