The follow of quickly ceasing transaction capabilities on the RunwiseFX platform surrounding vital financial bulletins is a danger administration technique. This includes stopping customers from opening new positions or modifying current orders for an outlined interval earlier than, throughout, and after the discharge of probably market-moving information. For instance, a halt may be instituted previous to the publication of U.S. Federal Reserve rate of interest selections.
The first rationale for this measure is to mitigate the elevated volatility and potential for fast value fluctuations that always accompany information releases. Such occasions can result in slippage, widening spreads, and elevated danger of stop-loss orders being triggered at unfavorable costs, doubtlessly leading to substantial losses for merchants. Traditionally, brokers have carried out related safeguards in periods of heightened market uncertainty to guard each the agency and its purchasers from undue monetary publicity.
