Event Risk

Also known as news events. Term used to describe a possible change in the fundamental analysis of a pair. For example, a rate change decision by the Fed or ECB is a very high event-risk as it has the ability to make markets significantly move. Even traders who do not trade the news must be aware of significant event risks. Markets typically tend to have poor liquidity just before a major event-risk and are susceptible to "whip-saw"

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