The IQ Option platform hides a number of functionalities that make a trader's everyday life easier. Today we will tell you how to read economic calendars on IQ Option. The creators of the platform have made sure that the terminal gives easy access to valuable content from the financial world.
|→IQ Option provides a comprehensive economic calendar for informed trading decisions.|
|→Understanding economic calendars helps traders stay updated with market events and potential volatility.|
|→Trading during high-impact economic events can be risky, and traders should exercise caution.|
How to read economic calendars on IQ Option
At IQ Option trading platform calendars are located in the market analysis section on the left-hand side panel. You can use a News (1), Economic calendar (2) and Earnings calendar (3).
News in IQ Option Market Analysis section
The News section is a typical press release. IQ Option scans the web for valuable news using its algorithms. Here you will find the latest aggregated data on all asset classes available at IQ Option.
A large amount of news is related to the movements of major financial institutions and their current analyses of individual markets. Many articles are dedicated to the currency market. You will find full analyses of major currency pairs, indications of technical price levels and interesting macroeconomic analyses.
Previously, there was a cryptocurrency calendar section on the platform. News from the crypto world has been included in the main news section. Also, an addition here is information related to cryptocurrencies and blockchain technology.
Let's study the structure of the Economic calendar. When you open it you will see a list of economic reports. The country releasing the report is indicated by a flag. Choose a report by clicking its name.
In the new tab that opens you will see the release date and the period it covers. Just below it, you can see three values: currently, forecast and previous.
Currently means the actual reading. It appears at the time of the release. If a report has not been released yet this field is empty. The forecast reflects the average of analyst predictions before the news release.
Previous is the value published in the previous release. Each event is accompanied by the volatility index which may be low medium or high. This index shows how much the report can influence the volatility of the asset or assets listed below.
By clicking the settings icon above you can filter releases by volatility impact, country or category. The general rule for reading the forex calendar is the following: if the actual reading is better than the forecast the currency appreciates.
If it's worse than the forecast the currency depreciates. However such indicators as unemployment claims and unemployment rate influenced the currency in question in a better way. If they are lower than the forecast.
Pros and Cons of Using Economic Calendars in Trading
- Pros 👍
- Stay informed about major economic events that can influence asset prices.
- Make better trading decisions by understanding market expectations and potential reactions.
- Filter events by impact, country, or category to focus on relevant data.
- Cons 👎
- Increased market volatility during high-impact events can lead to losses if not managed properly.
- Reliance on forecasts can be misleading, as actual data might differ significantly.
- Economic calendars do not capture all factors that influence asset prices, such as geopolitical events or natural disasters.
|Economic Indicator||Impact on Asset Prices|
|Gross Domestic Product (GDP)||Higher GDP growth can lead to currency appreciation and a rise in stock prices.|
|Unemployment Rate||Higher unemployment rates can lead to currency depreciation and a decline in stock prices.|
|Inflation Rate||Higher inflation can result in central banks raising interest rates, affecting currency and bond markets.|
|Interest Rates||Higher interest rates can lead to currency appreciation, while lower interest rates can lead to depreciation.|
|Earnings Reports||Positive earnings reports can lead to stock price increases, while negative reports can lead to stock price declines.|
Now let's take a look at the earnings calendar. The earnings calendar shows the EPS of companies whose stocks are traded on IQ Option platform. EPS stands for earnings per share. It's one of the main indicators published by companies when they file financial reports.
The calendar shows three values of a company's EPS: current, forecast and previous. If the EPS is better than the estimate the stock price will move higher. If the EPS meets the estimate the stock price will most likely not move.
If the EPS is lower than the estimate the stock price will fall. The previous values are usually less important than the forecast. The market reaction will be stronger if the difference between the forecast and the actual earnings is large.
How to trade the news?
Most trading platforms at options brokers have fairly poor economic calendars. I can confidently say that IQ Option has the best economic calendar in the industry. It is very well structured and it is easy to access different information that relates to the markets I trade on.
News and macroeconomic reports are important in making trading decisions. However, I would like to remind you that when important reports are published, such as unemployment data, they can stir up the market quite a lot. During the publication of important data I personally prefer to stay out of the market, i.e. without open positions. High volatility can quickly empty your trading account if you do not close your transactions on time. Therefore, it is worth knowing what and how individual assets are affected, but it is better to refrain from trading during the announcement of important macroeconomic indicators.
You already know how to read economic calendars at IQ Option. Log on to the platform and check what is happening in the world of financial markets.
We wish you successful trading.
- Q: What is the main purpose of an economic calendar in trading?
- A: An economic calendar helps traders stay informed about upcoming economic events and their potential impact on asset prices.
- Q: How can understanding economic calendars help traders make better decisions?
- A: By knowing the expected impact of economic events, traders can anticipate market reactions and adjust their strategies accordingly.
- Q: How can I filter events on the IQ Option economic calendar?
- A: You can filter events by volatility impact, country, or category using the settings icon in the economic calendar.
- Q: What is the relationship between earnings reports and stock prices?
- A: Positive earnings reports can lead to stock price increases, while negative reports can lead to stock price declines.
- Q: What should traders do during high-impact economic events?
- A: High-impact events can cause increased market volatility. Traders should exercise caution and consider staying out of the market during such events.
GENERAL RISK WARNING
Kindly note that this article does not provide any investment advice. The information presented regarding past events or potential future developments is solely an opinion and cannot be guaranteed as factual, including the provided examples. We caution readers accordingly.
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