Even during the jobs data release, 100% fill rate and the tightest spreads<br>The advantages of Saxo Bank Securities revealed by verification
■Trading opportunities arise when the market moves significantly!
During market fluctuations, various trading opportunities arise.
Among them, one of the trading methods popular among discretionary traders and part-time traders is“Indicator Trading”.
This is a method that trades around major economic indicators such as the Employment Statistics (Jobs Report) and the FOMC (US Federal Reserve policy rate), but
the reason it is popular is
“at a pre-set time”
“there is a possibility that prices will move substantially”
.
The reason indicator trading is popular is that you can see the normal volatility and understand how it works.
■In normal times, movements of 20 pips or more in 30 minutes occur in only 8% of cases
■In the 30 minutes after the Employment Statistics release, volatility of 20 pips or more can be expected
The above is a chart showing the percentage of price fluctuations (volatility) for USD/JPY on 30-minute candles from January to April 2018.
For the 30-minute candles, 53% had volatility of 10 pips or less, and 39% had volatility of 20 pips or less.
Only about 8% of the time did prices move 20 pips or more in a short time.
Usually, even with trading, it takes 30 minutes to over an hour to secure a profit of 10 pips or more.
For full-time traders, you can devote a lot of time to trading in a day, but for part-time traders, you cannot spend that many hours trading.
Therefore, indicator trading, where you know in advance when it will move and has the potential to gain tens of pips in a short time, has become a popular “event” among traders.
Among many economic indicators, the biggest big event is the U.S. “Employment Statistics”“Employment Statistics”.
Among many economic indicators, the biggest big event is the U.S. “Employment Statistics”“Employment Statistics”.
The above shows 30-minute price fluctuations in pips for the Employment Statistics releases from January to April 2018.
When moves are big, 50 pips can move quickly, enabling large profits with big-lot trading.
■The biggest enemy of indicator trading is execution quality and spreads!
These economic indicators can be opportunities for big gains, but
experienced traders know that around the release, spreads widen significantly
and market orders may not go through or execution can be slow.
However, this is accepted as normal.
Because employment statistics can move more than 20 pips, traders participate in indicator trading believing there will still be profit even with widened spreads, but,
Wouldn’t you like to know of a broker where spreads don’t widen much during indicators and orders get filled reliably?
■Yano Economic Research Institute findings comparing execution quality and spreads during Employment Statistics
In Saxo Bank Securities' press release dated May 15, 2018,
the study compared the order execution and spreads on a per-second basis before and after the Employment Statistics release (30 seconds before to 6 minutes after) among three major FX firms with tight spreads and Saxo Bank Securities, as revealed by Yano Economic Research Institute's investigation.
（Quoted from Saxo Bank Securities）
Even FX companies that advertise fixed spreads were found to widen spreads significantly during Employment Statistics releasescompared to normal times.
Of the three, two widened USD/JPY spreads to 5 pips or more.
No matter how much the Employment Statistics could move, entering at -5 pips would make it take longer to realize profits.
On the other hand, Saxo Bank uses a variable spread system, but even around the release, it offered the narrowest levels among the four compared, with an average spread for USD/JPY of only 1.1 pips!
■Saxo Bank has a 100% fill rate, and an average spread of 1.1 pips even during Employment Statistics!
Also noteworthy is its high execution power.Saxo Bank reports zero order rejections for both USD/JPY and EUR/USD.
Being able to enter and exit at the exact timing you target is very important for scalping and indicator trading that compete in seconds. For scalping that aims for small pips, a single order rejection or a one-second delay in execution can make a difference in profits. Moreover, not being able to trade during market moves doesn’t just cause missed opportunities; it can also lead to losses during emergencies, preventing you from cutting losses. You often hear stories of profits earned with effort being wiped out by a single order rejection during market moves.
Until now, spreads widening and order rejections were treated as normal, but this study’s results could be a real shock to long-held beliefs. You wouldn’t want to use an FX firm with a 5-pip spread during indicator trading!
■API integration, use of MT4
Saxo Bank offers trading platforms: desktop “Saxo Trader” and multi-device browser app “SaxoTraderGo.”
For system trading, obtaining open API or trading via the MT4 platform is also possible.
Conditions are negotiable, so if you’re serious about tackling this, please consider it!
Strong execution power and tight spreads can dramatically improve performance during market volatility when normally spreads widen and execution may be poor.
For more detailed results and live spreads in normal times, you can view them here!
↓↓↓↓↓↓
× ![]()
