Question: Should I Close My Trade Before a Major News Event Release?

A common question by many traders is what to do at a major news event when holding a open position in the market. That is a great question, in this video below I go over a recent email question at the website asking this very question and answer that question in detail.

As an example,  say you held a Buy Aussie USD as an example before a major news release was coming out for interest rates as an example and expected forecast for that pair to be negative, then what to do? In particular what to do if the news event results is against the trend of that market and may effect your position.

news economic calender

Above – Image showing recent Economic Calender of  The Aussie Interest Rates, no forecast of negative results was expected for this event.

Video Above – In the video above I summarize the options when holding a position before a major news event and the options traders have as well.

To summarize that answer, it all comes down to the time frame you are trading, if daytrading ( time frames below the 1 hour time frame ) then yeah closing is a good option as another trade is always around the corner. If longer term trading or you are already in profit decently in a established trend position then holding longer and locking in instead is generally more preferred.

Also like I say in the video as well it depends on forecast, if say forecast is positive to the trend of the pair one is trading ( meaning positively aligned to your trade ) then closing is up to the trader. Many answers I know as there are many variables.

About Timon Weller

Timon Weller is the professional Writer and Trader behind the blog Forex Reviews. Timon Weller is also a professional Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Greetings Timon,
    You are a very good trader & you already proven that.
    I will acquire your educational material because i want to learn from you &
    i want to support your honest act of helping traders, but first i need to gain what i’ve lost, back…
    My question is : How do brokers repay their clients, if they are profitable?
    For example FXCM takes a percentage of a comission the rest of it is going directly to those who provide us cash liquidity to access the market, the leverage.
    So earning low commission can not justify repaying their clients big accounts back.
    Am i correct, i want your knowledge on this.
    Thanks Kostis, Greece

    • Greetings Kostis,
      Thanks for the the feedback mate, appreciate it.
      Most Brokers and liquidity providers make money in a few ways, the spread, the commissions, widening spreads at news events when liquidity is being used more ( big earner ) and markups on the rollover commissions. Considering Forex is the biggest market in the world turning over trillions daily ( usually over 5 trillion in turnover daily ), all those aspects of commissions add up.
      When a client is profitable that money comes from the liquidity providers and from the clients ( other traders if using a STP broker ) that they were trading against that have either a losing position or are holding a draw down. As an example, for every buy trade there is a sell trade in the market.

      Let me know if that helps answer that one for you.
      Regards and Happy Trading..

  2. Kind of yes,so it is comission ( Roll over, Spread, & Dealing desk execution trades )
    But can this still justify repaying big accounts only from those elements?
    So there are client accounts with all their funds in there but when is the time to withdraw all that funds, the money comes from the Broker or the Liquidy providers or both?
    And something else, you mentioned something else accurately when someone buys, someone else sells.
    On the spot Forex is this absolute, meaning that is 100% 1/1 buyer/seller or it is more elastic due to not much regulation so there might be 2 seller and 1 buyer?
    I am wondering this because the speed execution is blazingly fast!
    Thank you again,
    Highly appreciated,

    • Hey Kostis,

      With the one buyer, one seller aspect I mentioned, no it is not exactly like that, it is more so liquidity balancing depending on how much is traded by the trader, but yes it is balanced. ( and if say, for some reason at some point in the market it is not fully balanced then liquidity providers balance the imbalances ) This is where I think you are wondering about with where money comes from with a winning trade. Say you open a trade and you make profit then you make money from someone or partial money from a institution that did not make money on that move. This is completely balanced. So if say, you sell then liquidity is provided by opposing liquidity of a buyer or buyers. In essence, a profitable disciplined trader makes money from the traders that do not learn the proper skill of trading or see trading like gambling or similar.

      Overall, there is so much liquidity in the Forex Markets that there is no issue with how much money a trader can make in this business. Meaning, all STP ( no dealing desk type ) brokers are not interested in whether a trader wins or losses a trade. Many traders take losses and feel like it is the brokers fault, but unless you are using a unregulated broker or binary options broker, then there is no conflict of interest.


  3. Ranmal Goonetilleke says:

    Hi Timon,

    I have been trading for almost an year now (the last 5 months -full time) and last month i was introduced to your site by some friends (and fellow traders) and i purchased your 5 day trend training video series and I must say that i have benefited hugely from it!

    Your video series was clear, constructive and helped bring a lot of clarity to my trading thought process – and I would highly recommend to any one who plans on making a living from trading.

    I am definitely going to purchase your Engulfing series as well soon 🙂

    Thanks for enriching my trading life!

    Best regards,


    P.S. -love your weekly videos too!!

    • Hey Ranmal,
      Thanks for sharing the great feedback on the Forex Training at the website.
      Glad to be helping traders such as yourself improve in this business.

  4. happy new year timon learning a lot from you thank you

  5. I ve watched many of your vids and i m now getting the impression that trading 4hrs and above might be the most profitable, trading below 30min seems to be riskier and less profitable in the long run.
    Am i wrong?
    1Hr and below = many trade opportunity with 60% average success rate
    4Hr and above= Fewer trade opportunity with 75% average success rate

    Is it what i should choose from?

    • Hey Ced,
      This also depends on variables of methodology and trend evidence aspects, however you are right overall in your analysis, the 4 hour or higher being higher performing of the time frames for Price Action based methodologies.
      I will note however probability is just a part of what a trader wants to see on a potential good setup, they also want to see much more potential reward than the risk on the setup.

Speak Your Mind