A helpful tool for binary options trading is the Economic Calendar. It provides you with daily financial news and can be considered a timeline of political and economic activities. In addition, it shows the results of the trading indicators used to evaluate specific sectors of the economy.
For all financial market participants, these data can be used to predict predict market events. They also serve you as a basis for short-, medium- and long-term investment decisions, as the measured indicators show how healthy a country’s economy is.
The economic calendar can be found on several websites and accessed for free. In the following example, we will use the economic calendar of Investing.com for illustration. You can also choose any other suitable economic calendar for binary options trading.
What you will read in this Post
Most important facts about the economic calendar for Binary Options trading:
- The economic calendar can be a crucial tool for understanding market events and economic health.
- We’ll take you through the typical structure of an economic calendar, including time zone, country information and volatility indicators, to help you navigate it effectively.
- We’ll show you how to interpret the economic calendar, focusing on key factors such as date, time and country of origin, in order to plan your trading strategy around news releases.
- While the economic calendar is a valuable resource, it is important to use it in conjunction with other binary options tools and strategies.
This is how an economic calendar is usually structured
No matter what economic calendar you use, they usually have a similar structure. Here, the standard time of the financial markets, the US Eastern Time, is generally given.
On top, there is helpful information about the country from which the press release originates. Often, either the country’s flag or its abbreviated name is displayed. You can make use of this information to determine which currency will most likely be affected by volatility when the news is released.
It is common to find fundamental indicators or press release events that can be traded. Here, a clickable link might display a drop-down menu explaining what the particular indicator measures and how important it is for the current trade.
The economic calendar also includes an overview of volatility. Different formats display the volatility indicator, especially asterisks, color codes (red, yellow, and green), or exclamation points are standard formats. They indicate how the message is likely to impact the currency in question. The impact levels range from low to medium to high.
How to interpret the economic calendar as a binary options trader
In order to interpret the economic calendar in binary options trading, it is vital to look at several factors. Especially the date and time are the first trading considerations you pay attention to plan your trading strategy for the news.
Click on the button to load the content from sslecal2.investing.com.
Knowing when the news will be released also reminds you to close open positions as soon as possible to protect them from occurring market volatility after the release. Besides, it is helpful to note which country the news originates from. Make sure to read about it before you invest your money. Here, particular attention should be paid to the actual, expected, old and new numbers.
Besides using the economic calendar only, make sure to implement various binary options trading strategies and make use of other binary options tools to get more data for your investment decisions. Especially economic calendars should not be the only information source for binary options trading.
(Risk warning: Your capital can be at risk)
Some Frequently Asked Questions (FAQs) about the economic calendar:
What is an economic calendar and how is it useful for binary options trading?
If you’re involved in binary options trading, an economic calendar can be an invaluable tool. It provides daily financial news and serves as a timeline of political and economic activity. These data points can help you predict market events and make informed short, medium and long term investment decisions.
What is the structure of the economic calendar?
It generally follows the standard time of the financial markets, usually US Eastern Time. The calendar often includes information about the country where the news is coming from, which can help you
How do I use the economic calendar to make trading decisions?
You need to consider several factors such as the date, time and country of origin of the news. Then you need to know how to interpret these factors in order to effectively plan your trading strategy.