What Are the Risks of Forex Trading?

The retail sales report measures the total receipts of all retail stores in a given country. This measurement is derived from a diverse sample of retail stores throughout a nation. The report is particularly useful as a timely indicator of broad consumer spending patterns that is adjusted for seasonal variables. It can be used to predict the performance of…

Forex traders make money by betting that the value of a country’s currency will rise relative to another’s. For example, a forex trader might trade euros for dollars if they believe the euro markets are likely to face a downturn. Forex traders can also profit from interest rates—if a country’s central bank raises the interest…

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:…

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…