High-impact news events like FOMC decisions, NFP releases, and CPI data bring significant volatility and brokers typically implement several restrictions during these periods First spread widening is the most immediate effect Spreads on major pairs like EUR/USD can jump from 0.5 pips to 5+ pips within seconds. This directly impacts entry and exit costs Second slippage becomes unavoidable. Market orders execute at whatever price is available meaning your intended entry point may differ dramatically from your actual fill price Third, many brokers disable or restrict certain order types. Pending orders might be rejected, and hedging could be temporarily blocked. Some platforms even restrict new position opening minutes before major releases Fourth, margin requirements often increase ahead of scheduled events. Brokers raise margin ratios to protect against gap risk, which can trigger unexpected margin calls.
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