Forex trading is serious business where big money changes hands within seconds. As with any serious business one needs to be aware of the current market situation at all times and have one's finger always on the pulse.
This is why we are proud to introduce the eToro forex calendar, a tool that you will shortly come to heavily rely on for your trading decisions. Our forex calendar is located in a screen easily accessible from the main platform screen, so you can check the forex calendar at any point during your trading activity.
The forex calendar is a tool that tells you when major events take place in the world of forex. By major events we mean announcements and figures release by various financial institutions and policy making bodies. These announcements have a major effect on the forex market since they give clear indications of various factors in global economies. The principles of fundamental analysis state that because currencies are invariably affected by their respective economies, by observing the changes in global economies one can predict the movements of currencies in the forex market.
Another reason that a forex calendar is a tool that is crucial to forex traders is that it determines the time when forex traders will choose to trade. Due to the fact that these financial announcements present hard figures that reflect the state of global economies, most traders and major financial institutions will open trades based on these figures immediately after the announcements. This means that the forex market is particularly volatile in the short time after each announcement, with currency rates rising and dropping radically. Radical changes in the forex market mean the opportunity to make bigger profits (although it is riskier to trade during these times). It is important that you consult the eToro forex calendar on a daily basis at least, because you may want to save your trading till after a particular announcement.
In the forex calendar you will have a few indicators to look out for. First and foremost you must of course note the date and time of the announcement. The next thing will be the currency that the particular announcement will affect. Most announcements in the forex calendar affect only one single currency. Announcements that have a more international scope are very rare. The most important thing about a forex calendar event is its impact – indicated in the eToro calendar by the color of the flame next to the event's name, ranging from yellow to red. Simply put, yellow means that you can afford to skip this one, while red means that you should put aside anything else you have going at that time and give your undivided attention to this announcement.
The forex calendar is something that you should plan your week around as a forex trader. Use the eToro forex calendar to become more aware of the global situation in the forex market, and of course to become a better and more successful trader.
