Could you recommend the best type of order to be successfully filled when trade the release of news?
Someone recommended the stop order with limit, because if it is rejected by any counterparty, it is handled over other subject(s).
But seems to me, there is a big delay when the order is handled and execution is very rarely.
I think, maybe market order with slippage control would be useful, but I dont know all the possibilities and advantages.
When I used MKT + slippage control then I received "Order xxxx was REJECTED: Rejected by counterparty"

Would be nice if somebody with real experience gave the hint.

Thank you.

Your question is related to both the characteristics of the market upon news release event, and the
ex-ante appropriateness of using a specific kind of order in a given market situation.

Unfortunately, the higher probability of being rejected when news are incoming cannot be decreased with
some efficiency by the use of a particular type of order. When news events are associated with an
increase in the price volatility and a shrinkage of the available liquidity, it could be worth to relax the
constraints of slippage on orders. On the other hand, when news events have no strong impact on the
price action, it may be better not to relax the limit price constraint in an attempt to increase the
probability of execution. The problem is that it is very difficult, if not impossible, to assess ex-ante the
behavior of market volatility and available liquidity on news release.

It is true that the stop limit entry order may be the best average choice, because it shall try to capture
a trend at the beginning while placing a constraint on the price with the limit. On the other hand, it could be worth
to try to catch the available liquidity by making several attempts with market orders and a slippage condition should
the volatility being high, but the price remaining in some range.

There is no single rule about the best order to use in such a situation. At least, a forecast can be drawn about
the expected behavior of the market on the future news release, then selecting the most appropriate order according
to such a forecast.

You are encouraged to study the characteristics of all kind of orders that may be issued with the platform. It can
provide you with some clues about how to manage the news release environment.

Last, but not least, traders must be extremely cautious when placing conditional orders before a news release.
Indeed, the widening of the spread can trigger several conditional orders at the same time, possibly leading to the
realization of an immediate loss. Before the news event, the trader must review the possible executions under different
scenarios according to the conditions of their orders.

Should you need any further clarification, please feel free to ask us.