The forex market is undoubtedly one of the most active financial markets in the world. Unexpected market fluctuations, price volatilities, and time-sensitive trades require constant vigilance to avoid losses. Forex traders need to monitor global events to be able to make informed trading decisions. This is where an economic calendar plays an integral role.
What is an Economic Calendar?
Traders use an economic calendar to observe news that may (or may not) impact the foreign exchange market. It is a vital tool that traders use to decide how to move in and out of positions. The calendar informs the trader of any upcoming events that may put any open trades at risk.
What do different economic calendars include?
Economic calendars typically list things like events, economic reports, announcements, consumer surveys, and hundreds more (as well as release times). The calendar may include the potential impact of each item on the market and market sentiment.
What benefits do economic calendars offer?
- An economic calendar offers insights into the direction that currencies prices and markets may take.
- It is a useful tool for investors or traders to better plan trades and adjust portfolios.
- The calendar also provides a greater understanding of how market movements may influence chart patterns.
- A trader can use the calendar to time trades around the release of specific economic data or events. This is especially important if the data or event is anticipated to have a major impact on the markets.
How to use an economic calendar
An economic calendar can be used in multiple ways to optimise the performance of your trades.
Staying on top of the markets
Regardless of what positions you have open within a particular industry or across industries, use the calendar to monitor financial markets.
Keep track of the news
An economic calendar is a great resource for news releases and economic announcements. Use it to plan your forex trades accordingly.
Technical and fundamental analysis
Calendars provide much of the data required to conduct technical and fundamental analysis and study price charts. This is especially so if trading on the news, so use the calendar to help you where needed.
The economic health of countries worldwide
An economic calendar can help a trader learn more about economic indicators used to study how a country is performing. Key indicators include the Purchasing Managers’ Index (PMI) data by IHS Markit which offers crucial insight into global economic health. Other types of data analysed are GDP reports, interest rates, rates of employment, etc.
Some calendars allow for access to historical market data for comparison to current data. In this way, traders or investors can speculate on trends and predict movements in the market.
Building a trading plan
Traders can use economic calendars as a means to build their trading strategies. For traders trading on the news, an economic calendar will offer fundamental data required to open or close trades.
Some economic calendars also allow for customisation so you can see what you want and when. Others allow for the setting up of trading alerts so that you are always notified of news and events as they happen.
The IronFX Economic Calendar
IronFX traders have access to an innovative economic calendar to help them plan and execute trading strategies. The calendar covers global financial events and economic indicators to keep traders worldwide updated. The calendar includes key economic indicators like GDP, interest rates, unemployment rate, Central Bank reports and PMIs, etc. The IronFX economic calendar is in real-time and provides a better understanding of current and future economic activity. A calendar is a great tool for identifying trading opportunities and planning and implementing trading strategies.
Trading with IronFX
IronFX, a global forex broker, offers an extensive range of trading tools to help boost your forex trading skills.
In addition to an advanced Economic Calendar, Learn how to optimise your trades through a variety of educational resources. This includes videos, blogs and articles, forex guides and FAQs that can be found under the IronFX School or blog sections on IronFX’s website. In addition, current economic and geopolitical news and events are available in one location for everyone to consume. All material is focused on helping all types of traders, regardless of expertise, to understand better the financial market and ways to trade.
Opening a demo account with IronFX
For traders looking to dive into forex trading, opening a demo account to strengthen their skills may be helpful. The demo account simulates a live trading environment, in which a trader can test their trading strategies and access vital trading information.
A demo account is also a great way for a trader to learn how to use technical and fundamental analysis before executing trades. It allows traders to see the potential outcomes of different trades as if trading with actual money. It also offers a way for traders to learn about different market conditions and trading concepts.
This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked, in this communication.
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