Many of the financial markets trade around the globe 24-hours a day. When events occur, market movements can be volatile, generating whipsaw price action. If you are planning to be an active trader during such hard times of COVID-19 Pandemic, you need online therapy during corona and some form of mechanism to keep track of market movements and the impetuses that drive prices. Anyone that is planning to engage in online trading should consider several different types of platforms to keep them abreast of market movements.
Keeping Track of Economic Events
There are several reasons that a currency pair, commodity, index, or stock will move. Most of the time markets move when new information becomes available. Many analysts believe that all the available information is already incorporated into the price of an asset. When new information becomes available the asset will move to a new price that reflects the market’s belief of current value.
There are several different types of key information that will drive the price of a financial asset. This includes economic figures, monetary policy action, or even financial earnings. One of the best ways to track these figures is to use an economic or financial calendar. An economic calendar is a calendar that describes the events that will be released on a specific date. Generally, an economic calendar will show you the time a release is scheduled to be reported, along with the estimated value and the prior value. Asktraders have a great ‘how-to’ on forex calendars if you’re unsure how to make the best use out of them.
An economic calendar will generally show you different economic data points that are scheduled to be released by the country. You will also likely find monetary policy results. What is important is whether the release that is reported is greater or less than what is expected. Since “what is expected” is already incorporated into the price of a financial asset, new information that was not expected will likely drive the price to a different level.
While an economic calendar will be pertinent for most assets, and earnings calendar will focus on public companies’ financial results and will mostly applicable to stocks and corporate bonds. A financial calendar will display when an earnings release is scheduled and what is expected by analysts and what was released in the prior quarter. Similar to an economic calendar what is important about the information is whether it is in line with expectations. A miss or beat on results will likely be a catalyst that moves the market.
Using a Platform
One of the best ways to find an economic or earnings calendar is through your broker. Most provide access to this tool through their trading platform or even their mobile platform. This means that you can follow pertinent information while you are on the go. In addition to following an economic calendar, you also need to be abreast of other news that will impact market prices. This could include political news or specific news about a company that could alter market prices. Most online trading platforms have access to realtime news that will help you keep in touch with market-moving events. Also, you want to keep track of the prices of the assets you are trading in real-time. Again, you are likely to be able to accomplish this using an online platform.
The Bottom Line
With the markets moving around the clock its important to have a way to see what is occur and have a tool that will provide you with the information that is generating market changes. Your online trading platform is likely to provide an economic calendar as well as access to realtime prices which will help you keep abreast of market-moving events.