SADDLE RIVER, New Jersey, June 20, 2012 /PRNewswire/ --
Our Forex Trading Guide aims to help you understand the importance of staying up-to-date with the latest financial news when trading with FX Solutions.
Forex Trading Guide: Following Economic News
Forex trading provider FX Solutions offers access to an Economic Calendar which enables traders to keep on top of the latest developments in the financial markets through clearly shown times, dates and locations of key events that have the potential to affect the future price movements of the global financial markets.
Below, we answer common questions regarding the use of Economic News in trading foreign exchange.
"Why should I follow Economic News when trading?"
You should follow Economic News when trading forex because it may offer you a clearer insight into the developments affecting the likely demand for certain currencies and therefore, future price movements of your chosen currency pairs.
For example, if you are trading the EUR/USD currency pair within the foreign exchange market, you may want to know about the fundamentals of the Eurozone economy such as GDP or jobless rates, as this could affect the likely strength or weakness of the Euro.
"How can this affect me when trading forex?"
How this can potentially influence you when trading forex is by offering you insight into how your market may move.
Using the example above, i.e. EUR/USD, if you believe negative data is likely to come out of Europe - you may choose to go short and sell the Euro because you believe that it may depreciate against the US dollar as a result.
However, if you anticipate that positive news is coming out of Europe, you may decide to go long and buy because you expect it to appreciate against the US dollar. However, please note that positive or negative news does not necessarily mean that currencies will move as expected-moves may be contrary to expectations due to a variety of factors.
Forex Trading Guide: Summary
To summarize, it is imperative that prior to trading forex, you fully research and analyse all factors that could potentially affect your profit and loss.
The aim of following financial news is to manage your forex trading by understanding what is going on in the market.
Find out more through the FX Solutions website: http://www.fxsolutions.com
Forex trading involves a substantial risk of loss and is not suitable for all investors.
About FX Solutions:
FX Solutions, LLC is a leading foreign exchange broker with a focus on advanced trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients institutional trading partners and introducing brokers in over 100 countries.
For more information, please visit http://www.fxsolutions.com/
SOURCE FX Solutions