scalper traders prefer trading when news is released
Market movements during news events carry a high level of risk for trading. Spreads widen, leading to slippage. If I'm only pursuing a target of tens of pips, this is a very dangerous way for me to enter the market.
Some brokers always provide warnings via email when news is about to be broadcast, about the risks of trading during news events.
This is a broker's concern for clients, but many traders still experience wide spreads or slippage, resulting in trading losses during news events. They complain to their brokers about this incident. This is a trader's fault.
Many novice traders don't understand the risks of trading during news events. They often assume it's the broker's fault. This is a common misunderstanding among novice traders.
Perhaps you mean creating a pending order (buy stop or sell stop). This strategy is a technique often used by traders following news broadcasts. If proper risk management is used, it's not a problem.
It is not that easy to trade on the news to make a profit, because the spread increases when the news is happening.
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