Pending orders into news versus market orders after it
Posted: Sat Oct 31, 2026 7:30 pm
Placing buy stop and sell stop orders just before a release feels clever. Price spikes one way, a pending order triggers, and the trade rides the move. That's the theory.
The reality is messier. Spreads widen right before the number, pending orders get triggered at much worse levels than set, and quite often the first spike reverses within seconds. Both sides can trigger in a whipsaw, leaving two losing positions.
Market orders after the release have their own issue. The spread stays wide for a while, and the entry price is worse than it appears on the chart.
Neither approach is magic. What works better for many is waiting for the first impulse to finish, letting spread settle partly, and then trading the second move in whichever direction holds.
That costs some of the move, but it avoids paying peak spread and peak slippage. Some traders skip news entirely and treat that as a legitimate strategy.
Some traders also split the difference by placing orders only after the first spike settles, using a limit order at a level the spike has already touched. That gives up the extreme but keeps the spread under control, and the fill rate is often better than expected.
What has worked best for you around releases: pending, market, or sitting out?
The reality is messier. Spreads widen right before the number, pending orders get triggered at much worse levels than set, and quite often the first spike reverses within seconds. Both sides can trigger in a whipsaw, leaving two losing positions.
Market orders after the release have their own issue. The spread stays wide for a while, and the entry price is worse than it appears on the chart.
Neither approach is magic. What works better for many is waiting for the first impulse to finish, letting spread settle partly, and then trading the second move in whichever direction holds.
That costs some of the move, but it avoids paying peak spread and peak slippage. Some traders skip news entirely and treat that as a legitimate strategy.
Some traders also split the difference by placing orders only after the first spike settles, using a limit order at a level the spike has already touched. That gives up the extreme but keeps the spread under control, and the fill rate is often better than expected.
What has worked best for you around releases: pending, market, or sitting out?