SL - 1.1190
TP - 1.1395
Last week was a roller coaster right with major tier 1 risk events from the US. Prior to NFP, we also have a total 7 active trades running. Thus the importance of risk + trade management kicks in. Having said this, we will not be focusing on this topic in this post, but rather we would like to share more about the how when such risk events take place, liquidity is crucial. As retail traders, we simply do not have control over this issue. So there are generally two ways we can control,
1) Managing our risk and trade accordingly. Be psychologically prepared for such possibilities happening during such news, or
2) Ensure that the brokers are supported by reliable liquidity providers (LPs).
Some screen shot below to show you the extent of which the spread can widen during key risk events. GBPNZD experienced close to 60 pips spread; while CHFJPY experienced closed to 30 pips spread.
Read the full blog post here: http://www.fxpresearch.com/market-analysis/2016/5/10/10th-may-market-analysis