Business Trading

The Benefits of Automated Trading with Low Latency News Feeds

There are several factors that affect the currency movement due to global changes. Some of those include inflation, interest rates decisions, industrial production, unemployment, retails sales, consumer confidence surveys, trade balance, business sentiment surveys, and manufacturing surveys. Hence, it is important that traders do something in order to monitor these factors so they can prepare and know what are the actions needed to do. One of the most effective tools that traders use in order to monito such information is the automated  trading that uses low latency news feed. Compared to traditional news sources, this tool has more credibility in predicting the global movement of the factors mentioned earlier helping traders to reduce risk and at the same time, increase profitability.

How is it reliable? Well, ideally, when a trader receives economic news, analyze the data, make the right decisions and apply models for risk management and finally do trade execution in the best and fast way possible, the more profit will come into the picture. According to studies, automated traders are way more successful than those traders who are still using traditional news sources like News Break Phoenix. Another great thing about automated trading is that there are no emotions involved. It can easily and quickly analyze data, process trends and execute trades compared to traditional methodologies. However, before a trader can fully take advantage of this low latency news feed, he or she needs to have the right latency news feed provider, proper strategies in trading and the right infrastructure of network in order to make sure that there will be fast possible latency to the news source. As a result, traders will be able to beat the competition on fills, execution or order entries. 

Now that you know how beneficial automated trading with low latency news feeds is, let us now go through the details on how exactly this kind of trading works. Basic ally, low latency news feeds offer economic data to cosmopolitan market participants who consider speed as one key elements to become successful in trading. Some market participants rely on traditional news sources that are not as fast as low latency news sources. The data is sent to several distributor points and private networks. Low latency news providers are using heavy and high quality technology infrastructure in order to ensure the fast as lightning transfer of information or data from one point to another.

With this, people who are interested in the global movement of the market will be informed immediately about the current updates about the factors that affect the currency movement. With the help of automated software trading programs, it is now easier and faster for traders to make decisions and do the right action. 

Overall, news is very important in the global economy market. This is an indicator of the volatility of a market. And with the use of automated trading tools, currency movement is now more effective and predictable for traders.

Eric Desiree is a graduate of Bachelor of Arts in Communication. He started his career as a Public Relations Officer in a law firm in Los Angeles California. Currently, he is the managing editor of ANCPR.