The Foreign Exchange, or simply Forex, is a market in which exchange of currencies takes place between two countries. This market is the largest in the world, and is the place where the trade of goods and services takes place between countries. One can trade currencies either through banks like those of New York or Chicago, or through private investors like those of Peter Thiel or George Soros.
While trading is largely speculative in nature, one must be aware that the trends in this market are also influenced by global economics, and these are the factors that drive up the volatility and make the market bearish in nature. Forex news trading is all about taking advantage of these fluctuations so as to make profits when the market shows that it is moving in a negative direction. News trading is an essential part of short term Forex trading strategy, and there are several Forex news brokers who specialize in providing you with this service. These news traders buy and sell currencies based on news reports that have a bearing on market movements. This form of trading has gained immense popularity due to its transparency, and low cost.
For instance, if a particular currency's price moves downward in the market, you can buy it in order to protect yourself against such a loss. But you should only do so with good information, for which you need the sources. Many of these traders have online accounts, which they use for trading on your behalf. They are known as "heddle" forex traders, because you will typically deposit your cash with them, and they will ensure that it increases in value while simultaneously protecting you from any major losses.
Another form of news trading is non farm payroll, which deals with announcements made by non-farm employers. These employers report any possible layoff that may occur, so as to update their sales figures prior to its effect. The most common issue covered in this category includes pay increases and promotions, but also job cuts. If you are interested in this form of forex trading, it would be best to contact the payroll department at your employer's company, and request them to send you any layoff notices they receive.
It is important that you note that not all of these companies are authorized to release such information. In some instances, farm payroll news announcement is announced by banks to improve employee morale. However, these releases are not meant to be released to everyone. Only selected individuals with access to the correct information will be informed. If you are one of those individuals, you should not make use of the information to start your own forex trade.
Another type of forex news drivers are strategies which attempt to identify and exploit support and resistance levels. Resistance levels are often referred to as "indicators" in forex trading. Indicators are characterized by their tendency to react strongly to initial price movements. Support levels on the other hand, are thought of as bearish indicators, since they tend to react more slowly to initial price movements.
One strategy often used with farm payroll forex trading news is the strategy known as the arbitrage strategy. This strategy is designed to identify and trade against price differences between strong support and strong resistance levels. This type of trading strategy is ideal for traders who have already mastered technical analysis. In fact, many successful traders throughout the history of the free market have utilized the arbitrage strategy. If this is something that interests you, it would be wise to learn about it.
Of course, there are a variety of other news drivers, including news related to global economies. For example, the recent news regarding the slowing of the Chinese economy could affect foreign investors looking to take advantage of China's economy by investing in stocks and bonds there. As such, experts continue to advise that timing is everything when it comes to buying and selling currencies.