DislikedFirst, I want to apologize if my following question has been asked before.
I am a news trader. TDFX claims that they use fix spread at all times, and they do not restrict news trading strategy. Of course I was very happy because this trading condition supported my trading style very well.
But....
I was disappointed when I finally heard this further trading condition: pending order could be widen 15-30pip up to 5 minutes before news and will be normal 5 minutes after news.
So, all I want to ask is, is this what TDFX claiming...Ignored
Thanks for your question.
As you might already know, most forex brokers do not allow news trading at all – no trading before the news, during the news, or after the news. There are a few brokers that allow news trading, and don’t widen pending orders, but even these brokers widen the spread during news releases, sometimes to 100+ pips.
Unlike most brokers in the world, Tadawul FX not only allows news trading, but it also keeps the spreads fixed. In other words, where as other brokers can widen the spread from 2 pips to 50 during the news, we keep it at 2 pips at all times. The only restriction that Tadawul FX has is widening pending orders on some occasions, for example during the NFP or other crucial releases that tend to move the markets significantly.
As a news trader it is important to understand that in fast moving and volatile markets (that can be the result of news releases), liquidity can be thin, making it difficult to fulfil orders. This is the reason why all brokers have some sort of restrictions or disallow trading completely.
I would recommend that you set your pending orders 5+ minutes prior to the news release when Trading with Tadawul FX, to avoid any possible restrictions.
Let me know if I can help further.
Best Regards,