Forex News Now (NEW YORK) – Forex traders are familiar with the importance of fundamental and technical analysis. However, performing market research and responding to key announcements are important to being “in the money.”
One such key market announcement is when the US Department of Labor releases weekly unemployment data. This week it is scheduled for release on Thursday, February 10th at 8:30 AM (GMT -5).
There are different ways you can trade Unemployment data. As Forex Binary Options are traded hourly, you can tailor your trading actions to the release time: before release time, right after release time, or up to an hour after release time (depending on the trading window and how it coincides with the release time).
For example, let’s look at EURUSD. If you believe that this week’s unemployment claims will be higher than last week’s and you believe this would then cause the USD to plummet in relation to the EUR, you could trade a CALL on the EURUSD right before the scheduled release time.
Consequently, if you believed unemployment claims would be lower than last week’s, and you believe this would then cause the USD to rise in relation to the EUR, you could trade a PUT on the EURUSD right before the scheduled release time. What you are doing is placing your trade on what you believe is the outcome of the USD in relation to the other currency, because of the scheduled Unemployment data.
Alternatively, you can start trading right after the scheduled release information or even watch for rallies and join in on the rally with a PUT or CALL trade depending on what you feel will happen because of this market event.
The key to note is that if you trade market events using Forex Binary Options as opposed to Traditional Forex, you are allowing yourself the ability to be “in the money” with limited risk. There is no need when trading using market events with Forex Binary Options to place a stop-loss as you are only trading the probability of the instrument heading in a certain direction (either higher or lower) in relation to another currency as a response to the market event.
Clearly, using Forex Binary Options to trade market events, such as the weekly U.S. Unemployment release, provides you the flexibility to choose your trade in a manner that optimizes your chances of coming out “in the money.”
Open an account with StartOptions and receive: A $750 welcome bonus, Daily Hot Picks and an e-book detailing everything you want to know about Binary Options.