What is a news squawk?
A news squawk service literally talks the news out to you over a microphone. You then receive the spoken news on your computer’s speakers. It gives you access to a team of people looking at the markets for you. When something significant happens in terms of news flow or price movement an audible voice lets you know very quickly what is happening. So, for example, it could be that there is a sudden 25 pip move on the GBPUSD pair. The squawk will flag that move up to you very quickly. The squawk will also let you know if that move is in relation to a news piece. The squawk keeps you informed of market moves and the known causes of those moves. Helpfully the squawk can also tell you if there is no reason for the moves, which can be handy to know. In addition to the ‘squawk’ element of the service, a good squawk service will also provide access to analysts that traders can talk to as well as special reports and session summaries. All of these tools are designed to help you tune into the market mood as soon as you possibly can.
The cost vs the benefits
For small trading accounts, the expense of a news squawk service may be harder to justify unless you are still focusing on the process of trading. However, for medium and larger accounts access to a squawk service is a ‘must have’. Having the squawk on over a trading day can help you begin to get a gut feeling for the market for that day. Just by the simple fact that you are hearing what other professional traders are hearing means that you are more ‘in tune’ with what the market is thinking. A team of analysts has helped prepare the information you read in a session summary or some pre-session news. Their succinct summary saves you considerable time when you are evaluating what the latest market moves are. If you have access to an analyst chat function you can also ask specific questions about how market dynamics are impacting different asset classes on the day. Finally, some of the services offer add-on educational features that are crucial in a macro trader’s development.
Financial Source and Newsquawk are two examples of a squawk service, with Financial Source being available to HYCM clients.