Forex Trading Event

Trading at the event attempt to participate in the reactions of the Forex market to price-sensitive news. The currency market is affected by a variety of different messages again and again. The most important news coming from the central banks and affecting its interest rate policy. Announces the head of the ECB or the Federal Reserve Bank, for instance, the easing of monetary policy, this leads to falling prices of the most relevant currency. Conversely, if a tightening of monetary policy focused orientation, increases the value of a foreign currency.

Event-traders have several ways to make money on news. A very popular method is to direct temporal context of an important date, such as a press of the Federal Reserve - to be placed just above and below the current share price, a long and a short order that will be triggered only if the market is the limit level been reached. Following publication of the news is there are three possible scenarios: either the market rises, falls or remains unchanged at its level. In the latter case, the two limit orders are easily removed again. This can happen on the one hand, on the other hand, the validity of the orders directly at the input to a reasonably short period are limited.

If the market, the long position is opened automatically. At best, the market will rise significantly in the environment of the news can be the entry-level addition to the trader and enjoy a handsome profit. Since it is possible that the market rises in short, the order is triggered and the price then falls again, should, as with any other order, a stop-loss can be defined. This is reasonably set below the market level before the publication of the news. If the market, the scenario created a mirror image of the above situation. Event-Trading is a very exciting way to act, since all actions are performed directly on the pulse of the forex market.