By now we have several articles about Binary Options Events and Financial Calendars so you probably know that even the perfect setup can turn into a losing trade if you are not aware of the news. Even if you are on the right side of the trend and all your indicators agree with the direction of your trade, you can still lose it if negative news related to your asset is released. However, there is a small detail you have to know.

I bet now I confused some of you, but think about the Unemployment Claims: a higher number of unemployed people is definitely detrimental for the economy, right? For almost all data except Unemployment related, a higher value is considered bullish and a lower value is considered bearish. There is something else you should know: almost all Economic Calendars have three important sections for each release: Previous, Forecast and Actual.

What is important is for you to compare the newly released Actual number with the Forecast, not with the Previous. This is a generally accepted rule, but it has exceptions, just as any rule. Anyway, the difference between Actual and Forecast is what moves the market, not the difference between Actual and Previous. You will find that tool free to download here — News Indicator for Binary Options — accompanied by explanations.

By using that News Indicator similar tools are also available over the internet , all the important events will be displayed directly on your charts so you limit the risk of missing an important release. If you take the time to read and understand what I wrote above, you will find event trading much easier and especially, more rewarding financially.

Popular Reviews 24Option IQ Option Nadex HighLow Ayrex eToro BDSwiss Binary. They then place trades before the news to potentially profit from the news and ensuing price moves if they are correct. British GDP data that affects the UK stock market may not affect the US stock market, but it will affect all GDP-related currency pairs.

Therefore, if you trade US markets, pay attention to US economic data releases. If you trade European markets, pay attention to European economic data released. If you want to be thorough, you could also monitor medium impact news as it may result in significant price moves. Binary options brokers may also offer their own economic calendar for you to use. If not, the one on Investing. com works well. These figures can help you assess how far the price may move and in what direction.

Rather, it is the value relative to the forecasted amount that you should focus on. Assume you buy stocks because inflation is low and you expect stocks to rise. Now, you personally may not care because you trade a strategy based on technical analysis , but a lot of investors and businesses do.

In that situation, investors may not be so sure if stock prices will rise because inflation is higher. Corporate costs are rising and could cut into corporate profits if companies are unable to sell as much as they raise their own prices to consumers to compensate.

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.

A strangle binary option strategy can be employed profitably around high-impact news. Learn that strategy to take advantage. 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.

By now we have several articles about Binary Options Events and Financial Calendars so you probably know that even the perfect setup can turn into a losing trade if you are not aware of the news. Even if you are on the right side of the trend and all your indicators agree with the direction of your trade, you can still lose it if negative news related to your asset is released.

However, there is a small detail you have to know. I bet now I confused some of you, but think about the Unemployment Claims: a higher number of unemployed people is definitely detrimental for the economy, right?

For almost all data except Unemployment related, a higher value is considered bullish and a lower value is considered bearish. There is something else you should know: almost all Economic Calendars have three important sections for each release: Previous, Forecast and Actual. What is important is for you to compare the newly released Actual number with the Forecast, not with the Previous. This is a generally accepted rule, but it has exceptions, just as any rule. Anyway, the difference between Actual and Forecast is what moves the market, not the difference between Actual and Previous.

You will find that tool free to download here — News Indicator for Binary Options — accompanied by explanations. By using that News Indicator similar tools are also available over the internet , all the important events will be displayed directly on your charts so you limit the risk of missing an important release. If you take the time to read and understand what I wrote above, you will find event trading much easier and especially, more rewarding financially.

Popular Reviews 24Option IQ Option Nadex HighLow Ayrex eToro BDSwiss Binary. com IG OptionRobot Bitcoin Code Tesler App Binary Robot Crypto Robot GreenFields Capital The Bitcoin Trader BinBot Pro The Crypto Genius. How to Trade Using a Binary Options Economic Calendar By now we have several articles about Binary Options Events and Financial Calendars so you probably know that even the perfect setup can turn into a losing trade if you are not aware of the news.

How Hard Can It Be? Know your Fundamentals If you take the time to read and understand what I wrote above, you will find event trading much easier and especially, more rewarding financially. Further Reading: The Fundamental Part of Trading Binary Options Soon Learn more about Economic Calender on our Forum.

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No matter what economic calendar you use, they usually have a similar structure. Binary options are not promoted or sold to retail EEA traders. Learn that strategy to take advantage. Here, the standard time of the financial markets, the US Eastern Time, is generally given. 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. Final Thoughts Every trader should know how to read and use an economic calendar.

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