The massive difference between the expected value and the actual value is likely to cause big price moves. This is just an example, but the same concept applies to all economic data. If the number released is close to expectations, the ensuing price move is usually less than if the actual number is very different from the forecasted number. The current number versus the previous values shows which way the data is trending. Keep in mind, though, that the news is not the only factor that affects prices.

Many traders rely on their own methods, independent of current market news. However, keeping your finger on the pulse of economic events can be a profitable dimension to add to your trading strategy. As price moves, it creates technical patterns, crosses through moving averages , and these factors bring in other traders. Other factors start becoming more relevant hours, and even minutes, after the data is released. Central banks around the world set their interest rates for the country at regular intervals.

The meetings are scheduled in advance, and then the rate which they decide along with a press conference to follow is released at a specific time. These are some of the biggest market-moving events, especially if the interest rate they decide on is different from what was predicted by analysts. The Consumer Price Index and the Producer Price index provide information on rising or falling consumer and producer costs in the US. This is information that central bankers use to make interest rate decisions.

Look for similar events in other countries if you are trading markets outside the US. GDP is the goods and services that a country produces within a given time frame. This will in turn affect money in the country, spending, inflation, and thus can have a large impact on financial market prices.

In the US, the big monthly event is called the Non-Farm Payroll and is released the first Friday of the month. Other countries release similar figures under various employment-related names. Multiple financial websites offer an economic calendar free of charge.

com offers a calendar ideal for forex traders because it covers all the countries around the globe. MarketWatch offers an economic calendar focused on major US economic events. SafeTradeBinaryOptions also provides its own economic calendar here. If you are trading US stocks, monitor high-impact US economic events. If you are trading a forex pair, monitor the high-impact economic events of both currencies in the pair.

They will impact assets related to the country issuing the data. US employment data will affect US markets and currency pairs with the US dollar in them. Some economic calendars allow you to filter which events you see based on country and expected impact, while other calendars do not.

com provides an economic calendar that you can customize and save if you set up a free account. With binary options, your risk is limited to the amount invested. That said, it is still worthwhile knowing when major economic data releases are scheduled. Since these events can cause large and sharp price moves, you can accommodate for this in your strategy, or potentially take advantage of it.

If you know when the events occur, you can adjust your plan accordingly. Every trader should know how to read and use an economic calendar. I day traded at a prop firm for many years and learning how to use the economic calendar was one of the first things we were taught. Knowing when the big news events are scheduled means knowing when volatility is likely to increase. This volatility can be used to your advantage if you have a trading strategy to capitalize. To get a sense of how the news events on an economic calendar affect market prices, open a free demo trading account to get a feel for how the price moves around certain data releases.

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Top Five Richest and Most Influential Traders Today How to make money on binary options without any investment? The Economic Calendar is usually found on several websites including this one and can be accessed by traders at no cost. The trading approach to the use of the economic calendar starts from the date and time of the Economic Calendar, which traders should note so that they can possibly line up to trade the news item if tradable.

Knowing what time the news will be released also serves to warn traders about when they should consider closing any open positions so as not to get these positions exposed to the vagaries of the post-release market volatility. A note is then made of the high-impact news items, as these are the only ones worth trading. The trader should also note the country from which the news is emanating.

It is good practice to read a little about this. It is not in all cases that the currency of the affected country is bought or sold when the news is released. A good example is the US Retail Sales report. There have been occasions when Yen crosses such as the EURJPY were the currency pair of choice to trade this news item, instead of the traditional USDJPY currency pair. Try to find out the best currency pair with which to trade a news item.

The attention will then shift to the name of the news release. Click any links here to read a little about the news to be traded and what a positive or negative number will mean for the asset. Next, attention shifts to the numbers: actual, consensus, previous, and revised numbers. Many people overlook revisions to their own detriment.

A revised number can dictate the response to the latest release, as market participants may become more bullish, bearish, or neutral than they would have been if there were no revisions.

An asset will be bullish if the difference between the actual and expected figures is more positive, and bearish if this parameter is more negative. The degree of volatility is determined by the degree of deviation, as well as the degree of deviation between the actual and previous results. Show all posts. Write a comment abort.

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Trading binary options and Forex to an economic calendar is a very popular technique that many traders use to capitalize on market fluctuations following economic data and news releases. com to provide you with an economic calendar in real-time optimized for trading binary options. All events listed below are expected to create noticeable market fluctuations, visible especially in shorter time frames. To understand and to configure this calendar please scroll down this page to the instructions below the calendar window.

The first thing you need to do before you start using this calendar is to sync it with your time. Obviously depending on the country you live in this will vary. If you live for example in London you would need to set the time on this economic calendar to GMT Dublin, Edinburgh, Lisbon, London. In order to do that click on the present time in the top navigation. Select your current location or nearby city from the drop down menu and the calendar will automatically refresh and load all economic data with your correct time.

When this calendar loads, by default it is set to show all major economic releases in a weekly view. As mentioned earlier all these releases will most likely create volatility in the currency they relate to all its pairs.

This is indicated by the little flag and currency symbol next to each release. However, there is a way to modify the weekly view and display all news, even those with lesser importance, in a daily view. The ones with three grey bull heads next to them indicate highest volatility. This economic calendar is much more than a calendar of influential data and news releases. The Actual column shows the number that loads in real-time when the news in announced. This is the most important number in this table but it has to be looked at in relation to the Previous and Forecast numbers.

If the Actual number is green it simply means that it is higher than the Forecast number. It simply means that the data release is better than expected and in most cases the currency will rise. If the Actual number is less than the Forecast number it will be displayed in red, and in most cases currency will fall. The bigger the difference between the Actual and Forecast numbers, the greater volatility may be expected.

The economic calendar is one of the trading tools that should be looked at by all market traders. It can be used as a binary option signals. However trading to economic news releases is a skill on its own. However, you may choose to belong to a group of traders that focus solely on these economic releases and capitalize on the resulting price movements. You can view 1min, 5min or 15min time frame. You will sometimes notice price movements before the actual numbers appear in the calendar.

This may be caused by investor speculations and a temporary market uncertainty until the data is actually released. You will also notice that often the currency pair will be in a sideways market for about min prior to an important release. Of course in that time the market will respond to all types of investors and automated machines and try to correct itself on numerous occasions even during a strong trend.

To learn more on this subject and to become a much better binary trader please read the articles in our Education section such as: 7 Candlesticks formations every binary options trader must know and How to recognize trends in the market. Compare Signals Trade with a Pro.

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