The practice of temporarily ceasing transaction capabilities on the RunwiseFX platform surrounding significant economic announcements is a risk management strategy. This involves preventing users from opening new positions or modifying existing orders for a defined period before, during, and after the release of potentially market-moving data. For example, a halt might be instituted prior to the publication of U.S. Federal Reserve interest rate decisions.
The primary rationale for this measure is to mitigate the increased volatility and potential for rapid price fluctuations that often accompany news releases. Such events can lead to slippage, widening spreads, and increased risk of stop-loss orders being triggered at unfavorable prices, potentially resulting in substantial losses for traders. Historically, brokers have implemented similar safeguards during periods of heightened market uncertainty to protect both the firm and its clients from undue financial exposure.
