Anyone who keeps an eye on the world’s financial market movements will have noted that global geopolitical and socio-economic events can impact the markets both positively and negatively. Some events only cause subtle movements, while others might cause extreme levels of volatility in the global financial markets. In practical perspective, we just need to look at two recent events. Namely, Brexit and the 2016 USA elections. In both cases, the markets went into rather radical tailspins. Brexit alone cost the markets $2 trillion US dollars while the USD lost 10% of its value against other major currencies during the announcement of the results of the US presidential elections. These are major shifts, and binary options traders should monitor how they develop in the aftermath. Have circumstances changed irrevocably? Was it only hasty sentiment that shifted market values for things, and therefore, will things reassert themselves to previous situations? The Economic Calendar stands to help the trader find answers to these questions, and moreover, to know when things are going to happen beforehand. Therefore the economic calendar can help you to predict price movements for stocks; commodities; currencies and indices.
What is an economic calendar?
An economic calendar is used by financial market traders to track the occurrence of specific events that have the potential to change the direction of material values in the global financial markets. The calendar contains the pre-arranged date and precise time of day for key events. Such as the date and time of day in a month when a government agency or department of state releases information and data into the public domain. Binary option traders pay close attention to the announcement linked to the event as there is a very high probability that it will affect the direction of the market.
The most influential events listed on the economic calendar include interest rate decisions by central banks, payroll numbers, changes in Gross Domestic Product (GDP), Consumer Price Index (CPI), and Purchasing Managers’ Index (PMI) and so on.
When tracking influential events via the economic calendar, over time the trader gains experiential understanding of, and insight into, why the market is moving in a certain way, ultimately equipping he or she with an instinct for anticipating such moves, and therefore, the ability to plan binary options trades accordingly. Experience has shown that the biggest market-moving events tend to result from the release of key data and information into the public domain. All things being considered, evaluating the information correctly leads one to predicting reactions to these announcements, therefore presenting traders with excellent prospects for their binary options profit making strategy.
What to look for in an economic calendar
In order to trade profitably, you need to pay close attention to future economic events in an attempt to predict the movement of asset values. It is important to stay ahead of crucial events and trade based on your understanding of the impact that a particular announcement will have on the market. Moreover, if you are not sure about what the repercussions might be in the markets resulting from something imminent in the calendar, you can get expert opinion from analysts at Stern Options to help clarify your estimation.
Where can we find an economic calendar?
As a world-class broker, Stern Options provides free access to a fully comprehensive economic calendar on their website. This calendar contains the following information:
• Date and time of day for announcements.
• Title of the data of information being announced.
• Impact assessment on assets.
• Previous, Actual and Forecast numbers & percentages for the data & information in announcements.
The economic calendar offers you the ability to consider events before they happen. You can also filter announcements by their predicted impact on the market, and finally and which is great for traders all around the world, you can choose what time zone you would like to view the events listed in.
A comprehensive economic calendar is a vital trading tool, allowing you to monitor key economic indicators, facts and data; thus, providing clues to the expected movement of any particular asset. It is important to realize that you do not have to make trading decisions on your own. Should you need any help and advice on how to interpret the impact of an event listed in the economic calendar, you have two options: (a) you can consult Stern’s free-to-use comprehensive education center in order to find the answer to the question, or (b) you can contact Stern’s customer support center which is open 24/7, and their team of financial analysts will be able to answer your questions. As well as this, your account manager at Stern Options will be ready to be contacted if you want to get a professional opinion on what the importance of a given event might be.