What is the importance of the economic calendar in the currency and foreign exchange markets
Forex economic news schedule, or as it is called economic calendar, is a guide that tells us the dates of release of economic data results, and it displays news daily or weekly, as the schedule contains a description of all current economic events and presents the importance and impact of each event. On the market, it also provides an opportunity to observe the numbers of expected results, but what is the importance of the economic calendar and what is its importance in the currency markets?
In this Bloom Markets Academy article, we learn more about the importance of the economic calendar in the currency and forex markets and the important points it represents in the trading process.
Definition of economic calendar
The Forex economic calendar can be defined as a series of scheduled economic events and dates related to currencies around the world, keeping in mind that each government has its own way of influencing the value of the currency as the focus of the economic calendar is on Each of them lies The factors that could be It affects the market, since the economic calendar also contains a number of predictions in relation to the type of reaction that an event can generate and the way in which it will Value of Currency It is important to remember that there are events and some reactions that may occur outside of the schedule. It’s always a good idea to base your forecasts on combinations of analysis types.
Economic factors affecting forex trading
The value of a currency’s price is a direct and natural reflection of the economic and political stability of the country exporting that currency. Therefore, any change in the value of this currency is a natural reaction to changes in this currency that have occurred … or are expected in the situation within this country … and this in a certain period of time … Based on this principle, the basic forex Analysts continue to look for ways to predict what will happen to a particular currency. Depends on the political, economic and social factors, and as we mentioned before. Sometimes an event has a reaction. Big action in terms of currency and there is an expected event in the economic calendar but it’s not getting any attention at all.
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What is the difference between pip and lot in trading
Pips and lots are two terms that the largest percentage of Forex investors may not fully understand, they just know that they affect the way they trade and the profits they can make. Simply put, these two terms are used as units of measurement for trading. They determine how the forex company executes your trades and what kind of profit you can expect from your investment, but the question remains what is the difference between a pip and a lot is in trading.
In today’s Markets Bloom article, we’ll walk you through the difference between a point and a lot in trading, as well as key information about these concepts.
What is forex trading about
Points are the most common in forex trading because forex is all about accumulating points after making a trade. So if the Euro or Dollar moves from 1.2250 to 1.2251 then the point is your measure of profit or loss. It is known that every currency has its value and accordingly the value of that particular currency must be calculated.
What’s a lot in trade
When you want to buy or sell in Forex, it is done by lot and there are many types of it. The trader chooses each size in relation to the size of his account and the scope of his strategy he is using. There is one size (default) and it’s worth $100,000, and there’s another size (mini), it’s worth $10,000, and they know that currency is measured in points, and so trading smaller amounts can take large amounts off you see in your trade, how much you have won or lost.
What is the difference between a pip and a lot in trading
Now let’s get acquainted with the points that explain the difference between a point and a lot in trading. The point is the smallest measure that represents the currency’s value movement and it also determines your profits in a given trade as the value of that pointit can vary from one broker to another it is always good to understand how the broker you are dealing with is used by defining this value as the majority of the big brokers are working to build the broker’s movement Currency pair to the full point but at the same time they can offer partial points to some of their clients as the point represents a small increase or decrease in the value of the currency which can vary depending on the currency pair you are trading with.
As for the lot, it is the smallest group of currency pairs traded with the broker. Since this value differs with the currency pair being traded as well, in addition to the broker you are dealing with when conducting trades.
Types of Forex Market Analysis
Analysis may seem like a vague concept to a new forex trader. But they actually fall into 3 main types.
Fundamental analysis is often used to analyze changes in the forex market by observing figures such as interest rates, unemployment rates, GDP and other types of economic data from countries.