Probably one of the most attractive strategies for making money on the foreign exchange market is trading on news. In fact, news releases are the main catalysts for short-term movements in forex, and since the market covers the currencies of the whole world, the strategy opens up a huge amount of trading opportunitiesfor traders.
Binary options trading on the news
The news trading strategy is quite simple. You do not need to analyze anything. The economic calendar publishes events that may affect the quotes of the underlying asset, and a trading decision is made based on the results of the statistics.
As you can see, there really is nothing difficult. But there are a number of nuances that are worth paying attention to. Not everything is as simple as it may seem. The result of such trade will not always be positive, despite the fact that you have the opportunity to wait for the result of publication and act logically.
You can get more detailed information on what the binary options trading on the news is in the article published at https://fraudbroker.com/binary-options-trading-on-news/
How to effectively trade on the news and events
The rules are very simple. In the list, you need to find the event, in the description of which the forecast is indicated (approximately 10–20% of the news). If the usual digital value is established, it means that a growth rate is expected. If there is a negative value with a minus sign (for example, -0.5), this means that a negative market reaction is predicted in the form of an asset’s depreciation. In the first case, you must enter the market with the UPoption, and in the second case, with the DOWN option.
When trading on the news on binary options, the high reaction rate is extremely important. It is necessary to enter the market immediately at the moment of the news release –in thefirst few seconds. Considering the presence of a small slippage, it is advisable to press the acquisition of theoptionbutton one second before the occurrence of the event. The expiration time is minimal – 1–5 minutes (turbo options).
Trading on stock news
For stocks, there is a separate reporting calendar of companies. Each issuer on the stock exchange is obliged to disclose its financial results, this means that all companies that sell their shares on the stock exchange openly publish financial reports that contain data on profits, debts, free funds, production volume, and so on.
If the new report speaks about the growth of profits, production growth, then it is not difficult to guess that the field of excellent performance of the stock will increase in price. Often the strongest jump in value comes at the very beginning of the opening of trading – ifthe company published a report before the opening.
Finding a reliable broker
For a successful work, it is important to choose a reliable broker. Also, before trading it is important t read the reviews. For this, you can use fraudbroker.com – https://fraudbroker.com/review/olymptrade/