How Do Forex Traders Make Money?

Economic indicators are reports released by a government or private organization that detail a country’s economic performance. These reports directly measure different aspects of a country’s economic health, but remember that many factors and policies will affect a nation’s economic performance. Economic reports are released at scheduled times, providing the market with an indication of…

GDP is considered the broadest measure of a country’s economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures:…

This report shows a change in the production of factories, mines, and utilities within a nation. It also reports their “capacity utilization,” the degree to which each factory’s capacity is being used. It is ideal for a nation to see a production increase while being at its maximum or near-maximum capacity utilization. Traders using this…

Since economic indicators gauge a country’s economic state, changes in the conditions reported will therefore directly affect the price and volume of a country’s currency. It is important to keep in mind, however, that the indicators discussed above are not the only things that affect a currency’s price. Third-party reports, technical factors, and many other things also…

Foreign exchange, or forex, trading can be highly profitable, but it also entails risks that are not present in other markets. Unlike domestic stock trading, forex traders are also exposed to currency risk when the value of a foreign currency goes up or down. In addition, forex markets also offer extremely high leverage, which can…