Knowing what upcoming events are going to affect the values of currencies is essential. Financial and political news can significantly affect global economics and the value of currencies. Changing values of currencies create trading opportunities or exposing trades to additional risk.
While it is true that many market-moving events happen without notice, much of the significant economic events happen at preselected times with governments or central banks. All of these preplanned report releases are collected and included in what is called an economic calendar. The wealth of data found in economic calendars makes them central to a trader’s planning.
For more information on how to manage your risk, our education section is packed with useful information. Particular attention should go to how to read forex charts, interest rates and how they affect the forex market, and different forex order types so that you find the best trading opportunities, trade news events, and reduce the risk in your trades.