An economic release refers to news reports that provide key information about the performance and health of the economy. These releases include indicators like unemployment numbers, FOMC, and PMI updates. Traders should exercise caution when trading during the news or economic releases as they can significantly impact market movements and influence trading decisions. Click here to learn more about slippage in the futures market.
Slippage is a common occurrence during high-impact news events, where market movements can be too rapid for order execution at the expected price. Traders should prepare for these scenarios by closely monitoring economic calendars and adjusting their trading strategies accordingly.
Economic releases cause extreme volatility and large price swings and are very difficult to trade consistently and profitably. While we no longer require traders to flatten their trades for economic releases (in either SIM or Funded Accounts), we highly recommend using caution or avoiding trading when a release is coming up that may impact a product you are trading. Click here to learn more about slippage in the futures market.
Trades impacted by economic releases are not eligible for review, exceptions, or credits. By choosing to trade during these events, you accept full responsibility for the outcome of your trades.
Slippage, which occurs when an order is executed at a different price than expected due to volatile market conditions, should be a primary consideration. Traders can mitigate its effects by reducing position sizes, using limit orders, or avoiding trading high-volatility events altogether.
Why are economic releases important:
This allows the market to digest new information, ensuring responsible risk management
It’s important to know what releases affect the product(s) you are trading
Unemployment Rate 7:30 AM CT | ES, NKD, NQ, 6A, 6B, 6C, 6E, 6J, 6S, E7, GE, YM, UB, ZT, ZF, ZN, ZB, GC, RTY, SI, HG, TN, 6M, M6A, M6E, 6N, MBT, MET |
FOMC Statement 1:00 PM CT | |
Crude Oil Inventories (EIA) 9:30 AM CT/10:00 AM CT* | CL, QM, MCL, RB |
Natural Gas Inventories (EIA) 9:30 AM CT | NG, QG |
Crop Production 11:00 AM CT | ZC, ZS, ZW, ZM, ZL |
*Pending Abbreviated Trading Hours. Times are subject to change without notice, traders are responsible for being aware of what economic releases are and when they occur.
**Micro contracts also apply
Can I trade during the news?
Yes, you can trade during the news. Topstep does not require traders to flatten their open trades/orders during the news, but we highly recommend using caution or avoiding trading when a release is coming up that may impact a product you are trading. Economic releases create unique risks in the market. Trades placed during these times will not be reviewed or adjusted, and the results are the trader’s responsibility. To manage slippage risk effectively during such events, traders are encouraged to reduce position sizes, utilize stop-loss orders strategically, and/or steer clear of trading when major economic news is imminent.
FAQs About Slippage
What causes slippage during trading?
Slippage often occurs during periods of high market volatility or low liquidity, particularly during major economic events. Rapid price movements make it challenging to execute orders at desired levels.
How can I avoid slippage?
You can minimize slippage by monitoring market conditions, avoiding trading during volatile events, and using limit orders instead of market orders.
Does Topstep adjust accounts for losses due to slippage?
No. Slippage is considered a normal market condition, and Topstep does not make account adjustments for losses attributable to it.