I am sure it is not news to you that world politics and the practices of banking corporations have an enormous impact on the world’s financial markets. The global financial crisis of 2008 can be cited as an example of the situation for ordinary folk when the intrigues of government authority and banks’ greed combine into an economic reality that has gone totally wrong. This was the year in which the binary options industry as we know it today was born.
The movements of asset the prices which concern our interest in binary options results from the actions of the market forces of supply and demand, and in virtue of events in the economic calendar.
What is the Economic Calendar?
The economic calendar is a calendar that is followed in order to track the occurrence of market-moving events. Binary options investors refer to the economic calendar as part of a routine research strategy, looking for the date and time of day on any given date when institutional events take place. It is critical to put close attention to the announcements that emerge with the daily economic calendar because of the certain probability that the information coming from announcements by governments, corporations, and institutions like central banks will affect the shape and direction of price trends for the assets we are interested in with binary options.
Every business and corporation has an economic calendar which governs its operations. For instance, at least once a year all businesses must publish their balance sheets, report on the positive and negative outcomes of the year, hire and fire people on the strengths of the outlook for business in the coming year. Companies who have their stock listed on the world’s exchanges must publish their accounts to their shareholders and this news has to be made public. Stern Options maintains a tabular economic calendar which lists the events that relate to the stocks, indices, commodities and currencies around the world.
Events and eventual Success
Some events only result in minor movements, while others such as for example the announcement of important statistics, like employment figures, GDP figures, central bank interest rate policy changes, etc., might cause major speculation and volatile price movements on the global financial markets. Recently, in 2016 for example, news of the Brexit referendum and the result of the US presidential elections, caused enormous volatility in the markets. The Brexit result caused the markets to fall $2 trillion US dollars, with the USD losing 10% of its value against other major currencies, and the British Pound losing 20% of its value against the Euro and USD.
Binary options traders were able to track events on the economic calendar and prepare for them beforehand. As a binary options investor therefore I can predict events correctly and modify my binary options investment strategy according to my assessment of the impact of the events. At the end of the day you make profits just from the price movements going in the direction we predict. For instance, placing ‘Put’ contracts on the USD and GBP as well as ‘Call’ contracts on the price of gold which rose when the currencies fell.
Stern’s Economic Calendar
The Stern Options website provides you with 24/7 free access to a fully comprehensive calendar that contains:
• the date and time of day for events and announcements.
• the Title of the data of information being announced.
• an assessment of the impact on assets.
• the previous, forecast and the actual numbers or percentages concerned.
Utilizing the calendar over time, as a binary options investor you gain experience, understanding, as to the value of events and their information value develops your insight, and therefore your predictive instincts. We use this instinct together with current market analyses when we are planning to invest in binary options contracts. Data is always a crucial ingredient of our decision making in binary options. Like the other trading tools, such as Charts; Graphs and Signals that you can utilize on Stern’s trading platform itself, the Stern Options online economic calendar is an indispensable tool for your success.
Utilizing the economic calendar means we are equipped to think ahead of crucial events and place binary options contracts based on an estimation of the possible impact that any particular announcement might have on the market. Moreover, if you are not sure about what the impact might be on the markets from something imminent in the calendar, you can get expert advice and opinion from Stern’s team of financial and market analysts. Stern’s team have over three hundred years combined between them today, and they can be reached easily via Stern’s Customer Support division by phone, email and the live chat facility on the Stern website.