During major economic news releases such as interest rate decisions, inflation data (CPI), or employment reports (NFP), many traders experience issues like platform lag, delayed order execution, or temporary inability to place trades. These issues can occur during news broadcasts or other turbulent times, or due to a high volume of users experiencing delays. They also depend on the technology used.
How Do Economic News Events Affect the Market?
Economic news often triggers high market volatility, causing prices to move rapidly within a short period of time. As a result, a large number of traders attempt to open or close positions simultaneously. This sudden surge in trading activity places heavy demand on trading systems and market infrastructure.
Main Reasons Trading Platforms May Stop Working During News
Extremely High Trading Volume
When major news is released, thousands of orders can be submitted at the same time. This creates a heavy load on trading servers, which may lead to delays, freezing, or temporary unresponsiveness.
High Market Volatility
Rapid price fluctuations require constant real-time price updates. During extreme volatility, platforms may struggle to process and display data smoothly, affecting order execution.
Reduced Liquidity From Liquidity Providers
During high-impact news, liquidity providers may temporarily reduce available liquidity or widen spreads to manage risk. This can result in failed orders, slippage, or temporary trade restrictions.
Broker Risk Management Measures
To protect both clients and system stability, brokers may apply temporary trading restrictions during volatile periods. These may include:
- Limiting order execution
- Adjusting leverage
- Temporarily disabling trading on certain instruments
Such measures are designed to reduce systemic risk during extreme market conditions.
User-Side Issues: Internet or Device Performance
In some cases, the issue may originate from the trader’s internet connection or device performance. High data flow during news events can affect slower networks or older devices.
How to Prepare for Trading During News Events
To reduce unnecessary risk, traders are advised to:
- Check the economic calendar in advance
- Avoid trading high-impact news if inexperienced
- Set Stop Loss and Take Profit orders beforehand
- Test strategies using a demo account
- Monitor broker announcements and platform notices
- Using a high-speed internet connection and powerful equipment can help alleviate this problem.
- Hosting your platform on a VPS instead of a local hard drive can help mitigate this issue.