One of the most important tools for working on the financial market is the binary options trading economic calendar. Reflects the most important macroeconomic indicators (events in different countries, scheduled time of news releases, analytical forecasts, previous values), which influence the quotations of major and correlated assets. Most new traders do not know how to use trading economic calendar which can lead to serious miscalculations and loss of their deposits.
Market reaction to the release of important information influences the exchange rates. The binary options trading economic calendar contains a schedule of news releases that are relevant to the international market. Even those traders who prefer the technical analysis use it in trading. This is due to the fact that volatility often rises at the moment of important news publication.
Speeches of heads of central banks, release of latest economic statistics – all this plays a huge role on the Forex market. Therefore, this information should never be ignored. The binary options trading economic calendar contains all this information in a structured and easy to read form. In addition, all the events specified in it are marked according to their importance.
The trader will be informed of the following:
- The time of publication according to his (the trader’s) location.
- The origin of the news (what country the event occurred in and what the source of the publication is). For example, if USD/CAD is one of the pairs you trade, you will be more attentive to economic statistics from Canada and the United States.
- The importance of the news, namely its impact on the corresponding asset. If the impact is low, then the price of the corresponding currency is unlikely to have much impact. On the other hand, if important news is released, there will be high volatility of the financial asset.
- The nature and the wording of the news which will make it possible to judge the nature of the event, whether it is a speech of Mario Draghi from ECB or unemployment statistics in the USA.
- The results and statistics of forecasts: historical data allows to estimate the evolution of events and to compare them with the situation on the market at the moment.
Now we will understand how to use economic calendar for forex trading and consider all the advantages of economic trading calendar for further useful use.
It is necessary to look through the binary options trading economic calendar not only for the current day, but also for subsequent days. Traders prepare for some events in advance. For example, the central bank meeting, where the decision to change the discount rate is possible. And the market may react to this news even if the rate remains at the same level. In other words, it is necessary to pay attention to such events in any case.
If you look through the binary options trading economic calendar for the current day you will immediately understand the probability of strong jumps in exchange rates. As a rule, on days when there are no important news releases, the market is calm. Although there are exceptions to the rules. On a calm market, even the release of insignificant economic statistics can cause a storm.
It should be noted that it is difficult to predict the behavior of currency pairs after the release of important news. On good news about the U.S. economy, the dollar may weaken, while bad news can cause it to strengthen. Fluctuations in one direction and then in the opposite direction are also possible.
Economic calendar forecasts
The binary options trading economic calendar menu provides three values of the published parameter:
The previous value corresponds to the value of the indicator announced in the previous reporting period. In the expected value display section the information is entered, which is forecasted by economists on the basis of calculated data and facts known to them. The actual value is defined as the actual value of the indicator announced at the time indicated in the binary options trading economic calendar.
To carry out analytical work on the indicators economic calendar trading, traders take into account the data of the past period, available when clicking on the link of the “event” element. By evaluating the numerical information economic calendar trading identifying several indicators, it is possible to characterize the economic state of the country and predict the behavior of its national currency. In trading such method of analysis is called a fundamental one.
For the convenience of visual analysis and the promptness of economic calendar trading work, the numerical actual values are displayed in several colors. Indicator values, which are lower than the expected value, are displayed in red. The green figures identify the exceeding of the published values of the forecast. The actual parameter economic calendar trading, which corresponds to the economists’ assumptions, is displayed in black.
Earnings on the trading economic calendar
There are many strategies for making money that are based on the analysis of binary options trading economic calendar data. They can be successfully implemented in the sphere of binary options and Forex market. The type of trading system affects the way the binary options trading economic calendar data is used.
When analyzing economic calendar trading, you should consider that the news released in the USA has a direct impact not only on the dollar, but also on all currencies, including metals. News from other countries influence only the national currency. When there is a political figure, it is better to avoid trading because the market may react ambiguously to the event, and the activated trade in this situation will be unprofitable.
All trading strategies economic calendar trading can be divided into several types:
When trading economic calendar for trading on higher timeframes, it is enough to analyze the information at the end of the week to assess the overall position of the national currency. Intraday trading implies constant monitoring of the resource information.
Traders who prefer calm trading styles should study the news schedule economic calendar for trading in advance and avoid opening a position when important news are released. It is necessary to take a break an hour before the indicators are published. It is recommended to consider signals economic calendar for trading for position opening and trade only after an hour, waiting for the market to calm down. Also, you should not trade during this time on the scheme of scalping and scalping.
Fans of aggressive trading prefer to make money on the news. In this case it is not necessary to predict the influence of the publication on the movement of quotations. In order to minimize risks, while waiting for the news, it is recommended to use the option of pending orders and make a deal for buying and selling. Its activation will occur at the moment of market reaction to the publication. Since it can be instantaneous, you should set stop orders in advance, fixing profits and losses.
US economic calendar
The U.S binary options trading economic calendar is of particular importance for Forex traders. The main currency on the market is USD. Therefore, news about this currency is instantly reflected almost on all currency pairs of Forex. We recommend to pay attention to the following news from America:
- Report on the formation of new jobs. On appearance of this information the market often rallies.
- Number of jobless claims. The number of initial applications is important.
- Unemployment Rate. It is expressed in the number of unemployed U.S. citizens.
- The creation of new jobs outside the agricultural sector.
There are other important indicators economic calendar for trading. Among them is the GDP. Release of this indicator is important for the Forex market. It assesses the overall state of the U.S. economy. The ISM Non-Manufacturing Index and the ISM Manufacturing Index are both indicators of inflation. They give an opportunity to assess how “healthy” the American economy is.
Retail Sales and Consumer Spending, which is released monthly on economic calendar for trading, is also important for the trader. They affect consumer confidence and other important aspects of a country’s economy. Building permits and new building sales are also useful for the trader. When these numbers come out, the market has seen powerful impulse waves more than once.
Trading economic calendar of Europe
For currency pairs involving the euro, news related to monetary policy plays an important role. First of all, we are talking about changes in the key rate or speech by the head of the ECB. Also we should pay attention to the consumer price index of the major EU countries.
Employment figures are also important. Changes in the unemployment rate can have a powerful effect on the EUR/USD quotes. In addition, pay attention to the ZEW and IFO indicators. The first one assesses the condition of companies from the banking sector and the second one assesses the condition of all European companies. Another important indicator economic calendar for trading is the manufacturing orders in Germany. The German economy is the engine of European industry. Therefore, German data have a strong influence on the EUR quotes.
From the point of view of the European Central Bank the main news will be the following:
- Reports of monetary policy meetings (e.g., key rate decision) and speeches by European Central Bank officials.
For price measures:
- The Eurozone Consumer Price Index provides a measure of inflation in the relevant area. This indicator can be determined for countries such as France, Italy, etc.
- Employment Indicators. For example, attention will be paid to the unemployment rate (primarily in Germany, the strongest country in the Eurozone).