The inflation numbers for November showed a rather significant discrepancy between forecast and actual: monthly CPI actual 0. The Dollar Shows Recovery Signs: Bearish Divergence in Play. Buckle up for a wild ride on the Forex Sea, because the next 5 trading days are packed with everything that a volatility trader wants and needs.

From U. inflation data to retail sales and interest rates, to the ECB Meeting and press conference, this week […]. Bitcoin Price Manages to Stay Above Support. Are the Bitcoin Bulls Waking Up? The downtrend is still in place, make no mistake about it, but the bears may soon enter their caves to hibernate for the winter. is starting to recede, which weakened the greenback and allowed its counterparts to climb.

The Fed signalled that a shift in monetary policy is […]. The Markets Are Getting Ready for NFP. Volatility on the Rise. Macroeconomic conditions continue to improve and the Fed is getting ready to slow the pace of the interest rate hikes, allowing risk assets to take a breath of fresh air. In a recent appearance, Fed Chair Jerome Powell hinted that the Federal Reserve will […]. Weekly Round-Up: Inflation, Non-Farm Payrolls, and More.

After an initial climb above the resistance at 1. Bitcoin Continues the Grind. Where Are the Bulls? This includes the type of news and reviews and the size of the impact the event or announcement will have. A good example of this is in volatile markets, such as cryptocurrency.

Alternatively, when using binary options to speculate on currency pairs, country-wide news may be more relevant. A good example of this is the Brexit vote the UK referendum to leave the EU that took place on the 23rd of June After the results were released, it was confirmed that the UK would leave the EU. One of the first steps is setting up or using an economic calendar that displays data and pictures of scheduled events.

Some brokers, such as IQ Option , provide this service for free with upcoming economic and company news documented. Note that these calendars may not always include all markets and assets that you want to trade binary options on. Importantly, when learning a binary options news trading strategy that works, you can open positions both in anticipation of events and in reaction.

Investing beforehand is more of a gamble as you are basing the trades on an expectation of the news being positive or negative and then how the trading community will react. An example of this would be news of an upcoming new product from a car manufacturer and hearing positive rumours of it being a well-made design. From this, you could then open a call binary options contract. On the other hand, if you wait until after the news is released, it may be easier to gauge how the market will react.

However, you need to be careful using this method because wait too long and you may be too late to capitalize on the opportunity, especially if the price action is short-lived.

A more difficult part of the binary options news trading strategy is accounting for unscheduled events. This includes news that is not planned out that you need to react to rapidly, for example, the Russian invasion of Ukraine starting in early Trading on news events like this is more of a gamble as the size of the impact on the price of oil for example, plus how long it will be impacted for, may be unknown.

Will the price immediately rebound or will the trend be sustained for a long period? To effectively react to unscheduled news, you often need to have extensive knowledge of the specific asset, wider industry and the event itself. Using the Russian invasion example again, this could include information on how long the invasion would last and how it could impact the Russian Ruble.

This could be through purchasing a subscription to a financial publication such as the Economist and Financial Times or local newspapers. Alternatively, you can get finds on the social media accounts of well-known crypto traders or investors in particular sectors, such as US technology stocks.

You should also have a plan so that before the market opens, you are informed of any relevant events or announcements while you have been asleep. You can set up notifications and signals on your computer or mobile device so that you are alerted to news as soon as they are released. With different metrics to consider, interpreting the news and reacting with the correct call or put is not always an easy task.

Several leading brokerages offer free demo accounts, including Pocket Option and Nadex. Paper trading profiles are ultimately a great place to practice binary options news trading strategies, from reading candlesticks, diagrams and market figures to understanding profitable quotes and payouts, plus judging false breakouts.

Make sure you have easy access to your binary options trading account and platform, especially during regular market hours. This hack is mostly for unscheduled news but will still be important for scheduled news announcements. Market reactions can be short-lived so if you want to take advantage of a news release you need to be ready to trade at short notice. Some binary options brokers, such as IQ Option and Deriv , also permit clients to connect an Expert Advisor EA to their account.

An EA is essentially a binary options trading robot that can execute trades on your behalf according to your binary options news trading strategy and pre-set algorithm. A binary options news trading strategy can form a key part of wider tactics and investment plans. On almost a daily basis, there are news releases from markets ranging from stocks and commodities to cryptocurrency and forex, meaning there is often price action to trade on.

Try not to fall into the trap of thinking that there are no indicators that can help. News trading can be combined with technical analysis using indicators such as the zig-zag and moving averages.

Don't look for risk in the chance; look for chance in the risk. Bodo Schaeffer. Earlier we have analyzed trading strategies trend-wise and counter-trend Now let's start trading on the news. What does a trader need to make a profit? Volatility The price movement. You can't make much money in an inactive market, unless of course you have a couple of billion dollars under management, and open positions are measured in hundreds of millions.

Then you catch the slightest fluctuations in a couple of ticks, and they bring a profit with many zeros. As for us, private traders with a limited capital, we are interested in powerful price movements.

И news - This is exactly the kind of thing that can provoke them. Page content. Perhaps, strategy on the news is one of the most popular ways trading in binary options. This is said to be the simplest and most accessible form of options trading.

Imagine a situation - a certain company launched a new product today and all you have to do is predict that the share price of this company will go up, right? Well, it's not. In fact, this situation is much more complicated than it seems. Trading on the news is not recommended for beginners and we will explain to you why. Trading binary options on the news is really only recommended for mid to high level traders.

All because the value of an asset tends to be most volatile during an important, related news event. Beginners will definitely face problems predicting the movement of an asset during special events. Nevertheless, binary options news obviously remains one of the best ways to make money online video , but only if you follow a few well-established principles.

If you have taken up binary options and want to make it your main income, you may want to try some other strategies The market is almost impossible to predict market movements immediately prior to the release of important news or events related to it. Predicting market movements is virtually impossible immediately before and immediately after the release of important news, or events related to new asset. Only a small fraction of experienced traders can say confidently enough what will happen next, they use their experience, analytics and details of a particular news event.

What are the peculiarities of trading on the news? The most important reason why beginners should not trade on the news is that the value of an asset can fluctuate wildly before and after the main event takes place.

During these periods, asset movements are almost always unpredictable. Often even experts are unsure of how to make the right choice. Nevertheless, trading on the news becomes much easier some time after the release of information about the event. Below we offer you a few rules to help you trade binary options on the news effectively. What we have already talked about above, and we will say it again - the value of the asset can fluctuate in a wide range after the event has already occurred, but also shortly before it is announced, as well as during the event and in case the event was planned and announced additionally.

Thus, if you are an experienced and perhaps impatient trader, you should not trade during the 15 minutes immediately before the event and the 15 minutes immediately after it is announced. During this time, the movement in the markets is not predictable because of the large number of trades being executed by others mostly by newcomers who have no experience or the slightest idea of what is still going on. At this time, you can see quite dramatic price swings over very short periods of time that don't seem to make any sense at all.

So surely the need to avoid trading in the first 15 minutes immediately before and 15 minutes after a news release will play to your advantage by not stressing you out with possible losses. If you are a mid-level trader and have a little more patience, you probably shouldn't trade for 30 minutes immediately before an asset event and for 30 minutes after it has occurred. This is based on the same considerations mentioned above.

Price fluctuations are less severe than before and after the 15th minute, but they are still significant. Thus, if you are not yet a market expert, you should avoid trading in those minutes. So now you know exactly what periods of time you should avoid trading.

However, you are still not aware of when you will have the best chance of increasing your capital in trading the news. The answer is this: you will have the best odds of winning in binary options if you start trading before the 30 minutes expiry time at the time the asset event occurs, or 30 minutes after it has already occurred.

Let's explain why this is the case:. Before an event happens, there is a general consensus about its nature. Here is a great example-if Apple plans to launch its new product in a few hours, most people will assume that the product will be of good quality and will have a positive impact on the company's stock.

In this case, it is very likely that Apple's share price will increase during this time. You will be able to buy appropriate option contracts in this situation. However, when there is about 30 minutes left until the product launch, everyone will literally start to go crazy. Millions of people start speculating, buying and selling, and the company's stock price will jump up and down. During the first 30 minutes a lot of speculators are still actively trading, which leads to price jumps, seemingly without any logic at all.

However, after the first 30 minutes, the asset stabilizes and starts to either continuously increase or decrease. This happens because after 30 minutes in the case of a product launch, for example people will already be able to assess the nature of the event. As in our example of Apple, by the 30th minute of launching a product, you will already be able to gauge the importance of the product released. If you see that the company has released something significant, rest assured that Apple's stock price will increase.

However, if the product is not of much interest or is a minor upgrade of a previous product, then you know that the company's stock price will decrease.

This way you can make correct predictions and make a lot of money. One of the most popular ways to trade binary options is to trade on news involving currencies. The best option here is to trade on the non-farm payroll report, which is published by the U.

Department of Labor every third Friday of the month. This report is last month's U. labor force statistics. The report reflects the total number of how many new jobs were created or, conversely, how many were lost in the U. during the previous month.

This report always affects the conversion rate of the U. dollar against other currencies. There are two basic scenarios that you need to take into account:. In this case, the dollar will increase in value. In this case, the value of the dollar as a currency will fall due to the fact that job losses indicate stagnation and a decline in economic production.

We have already dealt with this situation in our examples above. As has already become clear, the most common news related to companies involves a product launch. If the general consensus is formed that a company's product launch will be successful, then that company's stock is expected to rise.

If after about 30 minutes of launching a product, it becomes obvious that it is really significant, then the value of the company will naturally increase. It will be easy enough for you to make good predictions in these cases. But again, you should avoid bidding for 30 or 15 minutes before the product launch and 15 or 30 minutes after the official release of the product.

This advice is extremely important. Going to any site with economic calendar online for the first time, a person will be surprised and confused. Dozens and hundreds of news stories follow each other every day in a continuous stream, flashing graphics , numbers, percentages, quotes from politicians, etc. Brief news descriptions are usually unapologetically confident:.

Tip : stay tuned The price of the securities market in the USA, which is connected with the speeches of the US Federal Reserve System representatives, usually shows powerful price movements:. Everything seems to be simple: you wait for the news release, see a certain figure - trade by it. If the news strengthens the Euro - buy, if it negatively affects the dollar - sell. Everything would be fine, but it does not work this way, prices do not behave accurately according to these predictions.

However, in the analytical reviews from the "gurus" financial markets we will read: "At such a time is expected the release of important news - it is better to be out of the market. So, are we being warned against the possibility of making good money? Or from the possibility of going bankrupt? It turns out - from both, depending on the situation. Over the years of practical work I have seen the market reaction to news thousands of times.

Conventionally it can be divided as follows, with a probability of about one in three:. For example, if good news about the U. unemployment rate initial or resubstantial jobless claims appears and the U.

dollar really strengthens, the EURUSD goes down strongly by more than ticks. Exactly the same - good news on the U.

unemployment, but the dollar is also rapidly weakening, the EURUSD pair is tearing up. The news can be the most wonderful or conversely, the most unsatisfactory - and the price seems to be frozen in place. After what has happened always in hindsight , the same analysts will popularly explain anything to us. We will hear: "The bulls took the initiative, because the hourly chart has a "head and shoulders", "Market makers got the crowd again, as you can see on the VSA volumes", or "The overbought has exceeded the oversold, which is obvious from the divergence moving averages and shadows Ishimoku clouds ".

As if all this gibberish brings any clarity to the situation. It is important to understand that there is only one law in the marketplace:. There are no laws, no one owes anyone anything here.

The dollar may, but should not, appreciate after the good or bad news.

Imagine a situation - a certain company launched a new product today and all you have to do is predict that the share price of this company will go up, right? Conventionally it can be divided as follows, with a probability of about one in three:. Travel and insurance. Please check with your regulator. Otherwise, the investor loses the entire stake.

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