Managing Risk Around News Events
A 1-minute lesson from the MarketPro academy, one of 22 in risk management.
Scheduled high-impact news releases can cause sudden bursts of volatility, wider spreads, and faster price movement than normal trading conditions, which changes the risk profile of any open or new position. Some traders reduce position size ahead of major releases, avoid opening new positions right before an event, or widen stops to account for extra volatility rather than being stopped out by normal noise.
Scheduled high-impact news releases can cause sudden bursts of volatility, wider spreads, and faster price movement than normal trading conditions, which changes the risk profile of any open or new position.
What Changes Around News
- Spreads often widen temporarily as liquidity providers adjust to uncertainty
- Price can gap or move quickly through levels rather than trading smoothly
- Order execution may experience slippage, filling at a different price than expected
Finish this lesson in the MarketPro app
3 more sections of Managing Risk Around News Events, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.
Scan with your phone camera to install MarketPro and open this lesson.
Free account, no card. The academy has no paywall inside the app.
Not investment advice. Past performance is not indicative of future results.
Lesson 15 of 22 in Risk management
Run the numbers while this is fresh
The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Position size calculator, Risk of ruin calculator, Drawdown calculator, Profit & loss calculator.
The whole academy is free in the app
All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.
Not investment advice. Past performance is not indicative of future results.