News Trading

In strong relation with the notions introduced on the previous sub chapter regarding the economic calendar, news trading can be applied when trading binary options.

Like mentioned on this project for several time now, binary options are more appealing when trading on the short term time frames and this is why news releases are important for binary options.

When important news are released to the market this brings volatility to the trading table and without volatility trading options in general and binary options in special is difficult. Taking the decision to buy a sixty seconds binary option would be more likely indicated during/shortly after an important economic release, and/or different situation when the volatility is high. For that, watching the VIX (volatility index values) is highly recommended.

The most important events to be expected on a monthly basis and when volatility rises no matter what the month we’re in are, and not particularly in this order: NFP (non-farm payrolls in the United States) in the first Friday of each month, central banks interest rate decisions (first Thursday of each month for Bank of England and European Central Bank and once at every six weeks for the Federal Reserve in the United States, only to name the most important ones), PMI’s (purchasing managers index that shows the line between recession and expansion levels), CPI (consumer price index, which is the favored measured move for inflation, and inflation is on the mandate of every central bank in the world), and the list can go on depending on the asset you are trading and what are you interested in when trading.

In conclusion, news trading is important for trading binary options because of the volatility that it brings to the markets and the trader of binary options can benefit from these high levels of volatility.

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