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.
economic calendar
The XM official website has a recommended economic indicator calendar. It is only available in Japanese, but I think it will be helpful. By using this calendar, you can find out about important events in advance, so you can stop trading when the time comes. When trading in the foreign exchange market, you need to be careful of overseas events. Take measures such as withdrawing funds in advance if necessary, refraining from new entries, and lowering maximum leverage. XM has a dedicated calendar for FX trading, which is simple and easy to understand. Indicators can be displayed in Japanese time, etc.
time
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.
currency
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.
Importance
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.
index
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.
actual
These are the actual figures at the time of economic announcement. They show the magnitude of the impact and affect the investment situation. The US employment statistics have the greatest impact and there is also a risk of loss cut. The types and data can be conveniently viewed every month on the platform, so let’s obtain the relevant indicators and use them effectively. Major consumer price indexes, policy interest rates, etc. can be viewed at the same time.
Predict
These are figures announced in advance by financial institutions and market participants. The market moves depending on how the actual announced value differs from this value. Studying charts will help you predict the price movements of pips. Create a strategy to trade profitably from your balance. The basis is not automated trading or the functions of a demo account, but the ability to predict rates.
last time
This is the actual real value announced last time. If there is a revision, a yellow circle will be displayed. You can view multiple pieces of information together on one page. Use it for trading with EA, etc. Pay attention when it is time before or after the news is announced. It is easy to see and can be used on both PC and app. When placing an order, check the latest information according to your purpose. Check whether you are buying or selling.
filter
Please note that normally all index information for each country is displayed, but you can use the filter to narrow down your search by type. Try using the tool to determine the timing for when you want to use your bonus or funds to generate a position. Official support is also provided free of charge from the home page, so please contact us and make use of it.
politics
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.
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