Forex economic calendar is useful for traders to learn about upcoming news events that can form fundamental analysis. Besides, the economic calendar can plan your trading, manage trading risks, and carry out trading strategies. Thus, there are some benefits of forex economic calendar that you must know.
What is the Forex Economic Calendar?
Forex economic calendar is a source of information that allows traders to learn about important economic information. Such events may include GDP, Consumer Price Index (CPI), and Non-Farm Payroll (NFP) reports. In a fiscal environment and daily central bank intervention, it will be helpful to find out the date of the next central bank meeting or major news announcements.
How do you read the Forex Economic Calendar?
To know how to read the forex economic calendar correctly it is important to maximize your trading before and follow the most important releases. Checking the economic calendar every morning will allow you to familiarize yourself with important upcoming events. You can check the economic calendar in some websites, such as Baby Pips.
Benefits of Using the Forex Economic Calendar
Able to manage risk effectively (Risk Management)
Being able to plan your trading based on economic calendar events means you can prepare yourself for possible price fluctuations. When an event listed in the calendar occurs, there may be a period of volatility if the data is released far above, below or in line with expectations.
Risk is the difference between your entry price and stops loss price, multiplied by the position lot size. Traders must target this percentage to be less than 2% of account equity.
Have future planning
Forex economic calendar allows for forwarding planning. For example, if the Nonfarm Payroll report will be released, forex traders will know that this indicator has the potential to move the forex market substantially. So with the awareness of NFP timings, forex traders can plan effective forex trading according to the news.
Read more: How to Use a Forex Economic Calendar
