Customizable calendar

Definition of the economic calendar

What is the economic calendar?

The economic calendar refers to the expected dates of important publications or events that could affect the price movement of individual securities or markets as a whole. Investors and traders use the economic calendar to plan transactions and portfolio reallocations, as well as to be alert to trends and graphical indicators that may be caused or affected by these events. The economic calendar for various countries is available for free on several financial and market websites.

Key points to remember

  • The economic calendar refers to the expected dates of important publications or events that could affect the price movement of individual securities or markets as a whole.
  • Investors and traders use the economic calendar to plan transactions and portfolio reallocations, as well as to be alert to trends and graphical indicators that may be caused or affected by these events.
  • The majority of events listed fall into one of two categories: projections of future financial or economic events, or reports of recent financial or economic events.

Understanding the economic calendar

Economic calendars typically focus on scheduled releases of economic reports for a particular country. Examples of events listed on an economic calendar include weekly jobless claims, reports of new housing starts, scheduled changes in the interest rate or signaling of interest rates, regular reports from the Federal Reserve or other central banks, surveys of the economic sentiment of specific markets, and hundreds of other types of events.

The majority of events listed fall into one of two categories: projections of future financial or economic events, or reports of recent financial or economic events.

Traders and investors rely on the economic calendar to provide them with information and trading opportunities. Traders often take the time to enter or exit positions to match either the announcement of an event or the large trading volume that often precedes a scheduled announcement.

Following the economic calendar can be particularly beneficial for a trader who wishes to take a short position. If the trader correctly guesses the nature of the announcement, he can open the position immediately before the scheduled announcement and then close it within hours of the announcement.

Navigate the economic calendar

Economic calendars are available free from financial and economic websites. However, these calendars vary from site to site, and although it is referred to as “the economic calendar,” the actual calendar listings depend on the focus of the website and the events that website users are at. likely to be interested.

For example, the economic calendar of many websites only lists events in the United States, as these events have a big impact on the market. There are other sites that allow the user to create their own economic calendar using filters to show or hide events.

While these free calendars can be a useful starting point, most traders customize their own calendar based on the types of trades they prefer and the asset classes and regions they are comfortable with. In addition, a personalized economic calendar does not need to be limited to government and central bank publications. For example, a trader can create an economic calendar around major releases from oil-producing regions while incorporating the US Energy Information Administration’s weekly state of oil report and quarterly filing dates from petroleum companies. that he follows. In this way, an economic calendar becomes a customizable trading tool like an alert indicator.


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