Economic indicators and politics are the ones to watch out for when trading. There is a scene where the value fluctuates wildly at the time of a specific day in Forex trading. This is because announcements called economic indicators are made at that time. The timing of the announcement of economic indicators is likely to cause price fluctuations, and depending on the content of the announcement, price movements may exceed expectations. Therefore, beginners should be careful about time.
The XM official website has something called a recommended economic indicator calendar. There is only a Japanese version, but I think it will be helpful. By using this calendar, you can know important events in advance, so you can stop trading when the time comes. Forex market trading requires attention to overseas events. If necessary, take measures such as withdrawing money in advance, refraining from new entries, and lowering the maximum leverage.
The time zone is displayed according to the display language.
If you want to change the time zone, you can change the display language at the top right of the screen or set the standard time of any country from the “Current time” pull-down at the top right of the economic indicator calendar.
The flag and abbreviation (common name of the currency) of the corresponding country will be displayed. Currency is important in the market. In particular, the influence of the US dollar is very large. It also depends on whether you can make a profit.
In XM, “1” means an indicator of low importance, and “3” means a material of high importance. The XM logo mark is divided into three levels of importance. The larger the margin, the stronger the influence on the market, but if the margin is negative, a zero cut system will be adopted.
Displays the name of the economic indicator. Click on the index name to display the details screen. The larger the index, the easier it is to make a profit and the easier it is to make a loss. If the index is large, the management may limit the leverage.
These are the actual numbers at the time of the economic announcement. It shows the magnitude of the impact and influences the investment situation. U.S. employment statistics have the greatest impact, and there is also the risk of a loss cut.
These are figures announced in advance by financial institutions, market participants, etc. The market price will move depending on how the actual announced value differs from this value. Studying charts will help you predict pips price movements.
It is the actual announced value of the last time. If there is a revision, a yellow 〇 will be displayed.
Normally, all index information for each country is displayed, but you can refine your search with filters.
Traders should not just pay attention to economic indicators. Politics can also have a pretty big impact on trading. When a country will conduct a nuclear test or launch a missile, or when a president will say something outrageous, something like a virus that spreads all over the world is difficult to predict, and the volatility of the market is also extraordinary.
The more important the announcement or movement, the more likely the value will move, and some economic indicators can move the value of the dollar to the yen by more than 1 yen.
Traders have to keep up with not just economic indicators, but politics as well.
Let’s check together
Events that occur in economic indicators
When there are important economic indicators such as policy interest rates or political events, the following events occur, so if you are an inexperienced trader, we recommend that you wait and see without trading. As mentioned in the article below, we need to be especially careful about economic indicators in the United States.
The spread widens
When it comes to the timing of economic indicators, the more important they are, the wider the spread will be. Therefore, it is easy to make unrealized losses, and it tends to not go well unless you are very familiar with it, so we recommend that you do not enter it at first. It moves a lot, but if you try scalping at this timing, it will violate the prohibitions and your account may be frozen.
Contract rejection, slippage
When economic indicators come around, a lot of orders come in all at once, making it easy for your order to be rejected or slippage to occur. Therefore, the entry timing is often off, so if you are not used to it, you can expect to have a hard time. Monetary policy has a particularly large impact and moves rapidly, so knowledge is essential.
violent price movements
Basically, when it comes to economic indicators, price movements are extremely unstable and violent, so many traders find it quite scary. If you don’t trade with a larger lot than you normally do, you will lose the entire amount in no time when the lot goes backwards, so be careful. Payments and decisions may be affected due to server issues. Also consider swap points.