any dangers of trading nfp using pending orders?

@arthur_wildberry - 4 months ago - Risk Management

So yeah, most of the nfp trading strategies i have seen require the use of pending orders such as sell stop & buy stop. My question is this: is there anything that could go wrong when using pending orders to trade nfp, could the orders be rejected or filled at inferior prices?

@pierre_r_carosso - 4 months ago

When you place a pending order, you must also place a stop loss and the risk you face is that your stop loss may not be executed at the price you wanted due to slippage. Some brokers can be magnanimous enough to refund the slippage if you complain but many of them wont.

@quentin_ubuma - 4 months ago

Some brokers will not even execute the pending order at all, and there's nothing you can do about it, they will just give you an excuse. Another risk of using pending orders to trade nfp is the "whipsaw effect" where price reverses course quickly thus stopping you out immediately.