The fundamental point in trading is the awareness of market. By following significant indicators that are thought to make changes in the market you can easily preview what is likely to happen before a change really occurs.
But how is it likely to happen, and how much is its possibility to come true? So we are glad to inform you that at present there exists such an essential tool in Forex market that enables people to follow data and make speculations.
Thus, in foreign exchange market the tool which presents when major events take place in the world is known as FX economic calendar. The events announced in the calendar have great effect on the market as they indicate various factors in global economies.
Now let’s understand what is the plus of being aware about major economic events. Firstly it’s important for you to realize the direct connection between changes occurring in economic and political domains and the currencies. In other words, currencies are invariably affected by their respective economies. This means that you can predict the movements of currencies in the financial market by observing the changes in global economies.
Another reason for using FX calendar is that it will help you determine what time to choose for trading. To be sure in this you can take into account that most traders and major financial institutions often open trades based on the figures placed in the calendar immediately after the announcements.
And finally you should know that Forex market becomes volatile especially in the short time after each announcement. Hereby, currency rates rise and drop radically, and those radical changes ensure bigger profits. Although in such cases it’s necessary to be more careful as the trade is riskier during these times.
Now it’s evident that the economic calendar presents the global situation in the financial market and you, as a trader, should make it an indissoluble part of your trade.