Forex News Trading

Traders on the Foreign Exchange market, Forex market for short, can potentially make thousands of dollars based on the volatility and fluctuations of a country’s currency.
To better themselves and have a leading advantage over other traders, some Forex traders and investors participate in a practice known as news trading.
The technique of news trading is quite simple.
It is the trading of foreign currency immediately before or after an important economic news announcement. After such announcements, there is a high possibility that market prices will fluctuate, either for the better or worse, depending on the announcement.
The main advantage of news trading is the potential for a country’s currency to make huge gains or losses in very little time.
Within minutes of an economic announcement, a country’s currency can gain or lose one hundred points almost instantly.
The potential of huge profits attracts Foreign Exchange traders and investors, however there are various risks associated with news trading.