How to Use the Economic Calendar for Forex Trading


How to Use the Economic Calendar for Forex Trading

Economic news can be one of the key sources of market volatility. No matter whether you trade commodities, stocks or cryptocurrency – economic events have the power to influence markets in either direction and therefore should be monitored closely as one of your trading practices. It is therefore best practice for traders to keep an eye on economic calendar.

In order to increase the success of your trading, it’s vital that you regularly review the economic calendar. Depending on your trading style and strategy, this could mean checking daily or even multiple times daily – the key is finding an approachable schedule that matches up with your trading style and philosophy.

The Economic Calendar is an invaluable resource, listing all upcoming economic data releases such as interest rate decisions or earnings reports. You can see their times, dates and country of release as well as their expected impact levels based on how significant and consequential each event may be for markets. Events are categorised accordingly: high, medium or low depending on their significance in relation to other announcements on the market.

Traders can utilize the economic calendar to track events that might affect their trading instruments, and disregard those which are irrelevant. Each event usually comes equipped with its own prior figure and forecast forecast figures as well as an actual value upon release; traders can compare these with one another to see if there are any significant deviations that could wreak havoc on the market.

Most economic calendars enable traders to filter events based on their preferred trading instrument, region or currency – this feature can be especially helpful if you’re targeting specific currencies or markets that could respond strongly to an event’s release of data.

Traders can utilize the economic calendar to set alerts for events of particular significance. By creating alerts for these important happenings, traders will be aware of them earlier and act faster to address them than others would do so.

Common economic events that can influence the market include GDP reports, employment figures, inflation data and central bank speeches. Other notable releases of data are new home sales, factory orders and retail sales.

An economic calendar allows traders to easily access details regarding events that can help them analyze market impact and assess whether it fits into their trading strategy. Clicking an event gives access to additional details about it such as its previous and forecast values as well as actual and volatility levels. These details allow traders to gain a fuller picture of its significance for trading strategies.

Many economic calendars enable traders to customize event times according to their local time zones, providing great flexibility when traveling or working across international boundaries. This feature can especially come in handy for traders working internationally.

Beginner traders can use an economic calendar to gain a deeper insight into how the global economy impacts different markets, as well as how to anticipate future market movements. By studying major economic announcements, traders can make smarter decisions and increase their odds of success. If you’re ready to take the next step in their trading career, open a demo account with Forexbook today and take advantage of up to 1:777 leverage, negative balance protection, and outstanding support services!

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