Benefits of Using Forex Economic Calendar
The economic calendar is the main tool used in fundamental analysis. The forex economic calendar contains information about the publication of important news, reports or speeches by important officials that will affect the currency or stock markets. It includes monthly, quarterly and annual statistics on a country's financial variability and indicators such as the budget, balance of payments, discount rates as well as information on commodity and financial markets, and the central bank's stance on monetary policy.
Risk management
Studying and understanding the economic calendar will help traders plan their trading based on important events that fall into the economic calendar. Here the trader means being able to prepare for potential price turbulence. When an event listed on the calendar is released, there may be a period of expected volatility if the data is released well above, below, or in line with expectations.
Understand the principles of risk management related to this trading. Risk is the difference between the entry price and the stop price, multiplied by the position size. Traders should aim for this percentage to be less than 2% of the total account equity.
Future Planning
The forex economic calendar allows for forward planning. For example, if a non-farm payrolls report is to be released, traders will know that this indicator has the potential to move the market substantially, so awareness of timing means they can plan traders' trades on a regular basis.
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