#1 Guide to trade the news on Binomo

The price direction in the markets depends on various elements. The news from the political, financial and economic world have a great impact on what is going on in the markets. The release of the reports can transform the situation in the market very rapidly.

Usually, you can expect an increase in the price when the announced report is positive. After some negative news, a fall in the prices is anticipated.

To be successful in trading following the news releases is important. This article will guide you through this subject,

The types of news that influence the market

News from the economic world

Different kinds of reports can be found in this group of news. These could be unemployment statistics, reports about inflation and gross domestic product, data regarding retail sales or interest rates.

News from the financial world

Here, you will find the companies’ financial reports. When the figures from the report seem to be better than the predictions have suggested, the price of the share price of the company typically increases. When the reported figures underperform the prognosis, the company shares value falls.

News from the political world

The country’s condition is partially dependent on politics. The political news that can influence the markets are, among other, elections, the death of the leaders, impeachments, revolutions and other political events that affect the stability of the government.

Unexpected circumstances

When some big unexpected events take place, you will surely notice a change in market behaviour. And when I say unforeseen circumstances, I am referring to a terrorist attack or a natural disaster. Wildfire, flood, tsunami or earthquakes are just a few examples of what can happen.

How to stay up to date

You can watch the news on television or read newspapers, but it is quite difficult to follow all the information that can influence the market you are trading in. The best way is to keep an eye on the economic calendar. This is a special feature on the Binomo platform that allows you to check scheduled announcements. It collects data from numerous resources. You will find it on the panel on the left side of the Binomo platform.

Moreover, you can access the economic calendar on the Binomo Demo website. It is located in the “Free trading tools” tab.

Typically, you can expect the market will be under the news influence somewhere between 30 minutes and 2 hours. However, it may sometimes extend to a few days.

The economic news on Binomo

The reports from the economic world have great importance to the situation in the markets. Interest rates, gross domestic product, retail sales, unemployment, industrial production index to name just a few. There are many more statistics and surveys announced by significant national financial institutions.

The examples of such institutions are the Bank of England in Great Britain or the Department of the Treasure in the United States of America.

The financial news on Binomo

Companies listed on stock exchanges are under an obligation to present financial reports. They include revenue, earnings per share, net income, cash flows and other data. Published reports have an impact on the price of the company shares. Basically, when the report is positive in comparison to the prognosis, the stock price goes up. When the information is negative, the price falls. One way or the other, the financial news influence the markets and that is the reason why you should be up to date with the annual and quarterly reports.

The example of Q2 2018 financial report

Google’s parent Alphabet released the second-quarter report. It has stated that the Alphabet revenue grew in the second quarter by 21 percent when compared to the second quarter of the previous year. The revenue accounted for $26 billion. The report release has resulted in the rise of the Alphabet’s shares by five point three percent and attained the highest level of $1,275.

To stay in touch with the companies’ financial data, you can follow popular pages such as Yahoo Finance.

The political news on Binomo

Political news such as a change of the leader or revolutions influence the economy of the particular country and so they do not remain indifferent to the trading world. You can assume that everything that has the potential to create instability in politics is important from the trader’s point of view.

The example of such news is the Brexit referendum.

The Brexit referendum consequences

The Brexit referendum was carried out in the United Kingdom on June 23rd, 2016. This voting resulted in a sudden drop in the British pound price. During one night it has fallen 10 percent against the US dollar. It was the lowest rate in 31 years. People have begun to sell the pound massively and to buy the currencies that seemed to be stronger at a time.

As you see, a political event such as a referendum resulted in changes to the British currency and the economy in general.

The unforeseen incidents

A terrorist attack is very difficult to predict. And so are natural disasters like tsunamis, droughts or earthquakes. But they definitely have the potential to influence the trader’s world.

A recent outbreak of COVID-19 is an example of such an unexpected situation.

The thing is that these unforeseen events can be very powerful and the way the market reacts is normally a lot stronger than in the case of planned date publications.

Remember to check the economic calendar regularly. It may save you time and money.

Wish you successful trading.