Trading is a multi-dimensional process. Traders need to be aware of the current market environment as well as what might occur in the future. Foreign Exchange Traders speculate on the future direction of a currency pair or CFD. To do this, they must understand the past and the present. The Vestle trading platform provides access to a combination of historical data, live rates and the economic calendar.
The Vestle platform offers live currency and CFD rates on hundreds of trading products. Live rates appear on both the browser version of the platform or the mobile app. The mobile app can even provide up to date rates in real time when on the go. While many trading platforms will only offer delayed trading information, the Vestle platform gives clients access to real-time trading information which allows key trading decisions to be made.
In addition to understanding what has happened to a CFD in the past, and currently where it is heading, traders need to understand what kind of information can alter the course of a specific asset, to trade successfully. Most traders assume that all of the current information available is priced into a currency pair or CFD. When new information becomes available, the price will move to incorporate the new information.
Some of the most important information that can alter the direction of an asset is economic data. This type of information can be growth data, inflation data or even monetary policy. What is important to understand is that prior to the actual release of an important event, economists will estimate their expectations.
For example, ahead of the U.S. employment report, which is released on the first Friday of every month, economists will forecast their estimate of the number of people employed as well as the unemployment rate. The average is then usually calculated and placed on an economic calendar. The average estimate is theoretically what is incorporated into the value of a currency pair such as the EUR/USD. Once the data is released (in this case, the Non-farm payroll report, at 8:30 am ET), the value of a currency pair could change to reflect the new data. If the employment report is stronger than expected, the value of the dollar might increase. If the report was weaker than expected, the value of the dollar might decline.
An economic calendar will show the data from the prior month as well as what is expected. Once the current release is reported, the actual number displays next to the estimated amount. This will provide valuable information, and will help avoid being caught off guard when new information becomes available to market participants.
The key to successful trading is understanding where the market has been and where it is currently. This information will help make predictions about where it might move in the future. An economic calendar shows when new information should become available and that information can help determine the future direction of a currency pair or CFD.