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Thread: How to Trade on NFP news??

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    Default How to Trade on NFP news??

    There is Nonfarm payroll (NFP) and unemployment data from USA in every Months first Friday. Generally market is highly volatile during this type of news.

    We can follow simple strategy before news risking 12 to 14 pips only in each trade.

    Generally there is low volatility few minutes before data release. So we can place 4 pending orders “Buy stop” and “sell stop” order for usdcad and gbpusd as below. Please place these pending order 3 mins before news and be quick.

    How to place trade?
    Example:
    Suppose Current market price of gbpusd is 1.2380 and usdcad 1.3950 just 3 minutes before news

    Place below 4 pending orders:
    1. Sell stop (14 pips below cmp) gbpusd at 1.2366, SL 1.2380 TP open
    2. Buy stop gbpusd (14 pips above) 1.2394 SL 1.2380 TP open
    3. Sell stop usdcad 1.3936 sl 1.3950 Tp open
    4. Buy stop usdcad 1.3964 SL 1.3950 tp open

    SL will be at current market price and dont keep tp blank.

    When to close trades?
    Close after 1 minute of news or use trailing stop to book profit.

    What’s probability of win?
    This strategy will be profitable only if actual data far from expected data or sudden one side spike. However there is no harm to take risk of 12 to 14 pips as gain could be 2 to 3 times of SL. There is no technical or fundamental knowledge required for this type of trading strategy.

    Though trading on financial markets entails high risk, still it can generate extra income on condition that you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    Abdullah Ali (05-14-2020), dcba (06-21-2020), It's Mehwish (05-14-2020), Nasir Abbass (05-14-2020)

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    Default How to Trade on NFP news??

    The NFP data is an indicator of American employment, so your currency pairs that include the US Dollar (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and others) are most affected by the data release

    Though trading on financial markets entails high risk, still it can generate extra income on condition that you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    Trade in NFP is big risk because price is so volatile and spike will happen. So if you want to trade in NFP you are ready to lose if our margin is not strong. The way to trade in NFP is to place order with min volume to avoid loses and take profit around 30-50pips.

    Though trading on financial markets entails high risk, still it can generate extra income on condition that you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    how are my dear members and dear friend how are you . The non-farm payroll report causes one of the consistently largest rate movements of any news announcement in the forex market. when we know about the npf then we get good decission . thanks

    Though trading on financial markets entails high risk, still it can generate extra income on condition that you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    Thanx for the information.
    Visit the best assignment writing services for the best data structure assignment help.


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    Can you please share the details regarding this topic?

    Though trading on financial markets entails high risk, still it can generate extra income on condition that you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    Trading on NFP ( non farm payroll) is very exciting and sometimes could be scary before of the he high volatility of the market.

    Trading on NFP I.e on the first Friday of every Month by 13:30pm GMT

    Usually for news release, if the actual level is greater than the forecast, the currency tend to be stronger.
    But that is not always the case as one will have to check the margin and differences in levels if it is significant.

    Because of this, the best way to trade NFP is to watch the market once the news is released.
    Observe the movement and wait for the first 15 minutes candle to close, that will aid in determining the direction of the market. Then will it be safe to make your entries.

    And also trade the USD against the weakest currency for greater profit .

    Have a great trading week.

    Though trading on financial markets entails high risk, still it can generate extra income on condition that you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    WHAT IS NFP?

    NFP data is important because it is released monthly, making it a very good indicator of the current state of the economy. The data is released by the Bureau of Labor Statistics and the next release can be found on an economic calendar.

    Employment is a very important indicator to the Federal Reserve Bank. When unemployment is high, policy makers tend to have an expansionary monetary policy (stimulatory, with low interest rates). The goal of an expansionary monetary policy is to increase economic output and increase employment.

    So, if the unemployment rate is higher than usual, the economy is thought to be running below its potential and policy makers will try to stimulate it. A stimulatory monetary policy entails lower interest rates and reduces demand for the Dollar (money flows out of a low yielding currency). To learn exactly how this works, see our article on how interest rates effect forex.

    The chart below shows how volatile forex can be after an NFP release. The expected NFP results for March 8, 2019 were 180k (job additions), the actual result disappointed with only 20k jobs being added. As a result, the Dollar Index (DXY) depreciated in value and volatility increased.

    NFP forex reaction
    Forex traders must be wary of data releases like the NFP. Traders could get stopped-out due to the sudden increase in volatility. When volatility increases, spreads do too, and increased spreads can lead to margin calls.

    WHICH CURRENCY PAIRS ARE MOST AFFECTED BY NFP
    The NFP data is an indicator of American employment, so your currency pairs that include the US Dollar (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and others) are most affected by the data release.

    Other currency pairs also display an increase in volatility when the NFP releases, and traders must be aware of this as well, because they may get stopped out. The chart below shows the CAD/JPY during the NFP data release. As you can see, the increase in volatility could stop a trader out of their position even though they are not trading a currency pair linked to the US Dollar.

    NON-FARM PAYROLL RELEASE DATES
    The Bureau of Labor statistics normally releases the NFP data on the first Friday of each month at 8:30 AM ET. The release dates can be found on the Bureau of Labor Statistic’s website.

    Due to the volatile nature of the NFP release, we recommend using a pull-back strategy rather than a breakout strategy. Using a pullback strategy, traders should wait for the currency pair to retrace before entering a trade.

    Using the same example as above (NFP results 20k vs 180k expected) we expect the US Dollar to depreciate. In the example below, we use the EUR/USD. Because the NFP data came out worse than expected, we forecast the EUR/USD to appreciate.
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    NFP and Forex: What is NFP and How to Trade It?
    NFP and Forex: What is NFP and How to Trade It?

    Mar 22, 2019 3:55 PM +01:00
    David Bradfield, Markets Writer
    Advertisement

    NFP and Forex Trading: MAIN TALKING POINTS

    Non-Farm Payrolls (NFP) releases create volatility in the forex market.
    NFP measures net changes in employment jobs.
    Forex traders use an economic calendar to prepare for NFP releases.
    What is the NFP?

    The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations.

    US Non Farm Payroll historical results
    NFP releases generally cause large movements in the forex market. The NFP data is normally released on the first Friday of every month at 8:30 AM ET. This article will explain the role NFPs play in economics and how to apply NFP release data to a forex trading strategy.

    HOW DOES THE NFP AFFECT FOREX?
    NFP data is important because it is released monthly, making it a very good indicator of the current state of the economy. The data is released by the Bureau of Labor Statistics and the next release can be found on an economic calendar.

    Employment is a very important indicator to the Federal Reserve Bank. When unemployment is high, policy makers tend to have an expansionary monetary policy (stimulatory, with low interest rates). The goal of an expansionary monetary policy is to increase economic output and increase employment.

    So, if the unemployment rate is higher than usual, the economy is thought to be running below its potential and policy makers will try to stimulate it. A stimulatory monetary policy entails lower interest rates and reduces demand for the Dollar (money flows out of a low yielding currency). To learn exactly how this works, see our article on how interest rates effect forex.

    The chart below shows how volatile forex can be after an NFP release. The expected NFP results for March 8, 2019 were 180k (job additions), the actual result disappointed with only 20k jobs being added. As a result, the Dollar Index (DXY) depreciated in value and volatility increased.

    NFP forex reaction
    Forex traders must be wary of data releases like the NFP. Traders could get stopped-out due to the sudden increase in volatility. When volatility increases, spreads do too, and increased spreads can lead to margin calls.

    WHICH CURRENCY PAIRS ARE MOST AFFECTED BY NFP
    The NFP data is an indicator of American employment, so your currency pairs that include the US Dollar (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and others) are most affected by the data release.

    Other currency pairs also display an increase in volatility when the NFP releases, and traders must be aware of this as well, because they may get stopped out. The chart below shows the CAD/JPY during the NFP data release. As you can see, the increase in volatility could stop a trader out of their position even though they are not trading a currency pair linked to the US Dollar.

    CAD/JPY NFP reaction
    NON-FARM PAYROLL RELEASE DATES
    The Bureau of Labor statistics normally releases the NFP data on the first Friday of each month at 8:30 AM ET. The release dates can be found on the Bureau of Labor Statistic’s website.

    Due to the volatile nature of the NFP release, we recommend using a pull-back strategy rather than a breakout strategy. Using a pullback strategy, traders should wait for the currency pair to retrace before entering a trade.

    Using the same example as above (NFP results 20k vs 180k expected) we expect the US Dollar to depreciate. In the example below, we use the EUR/USD. Because the NFP data came out worse than expected, we forecast the EUR/USD to appreciate.

    EUR/USD NFP data pullback strategy
    Trading Forex News: The StrategyTrading Forex News: The Strategy
    RECOMMENDED BY DAVID BRADFIELD
    Can you benefit from trading off NFP data?
    Get My Guide

    TRADING THE NFP DATA RELEASES: TOP TIPS & FURTHER READING
    Here are a few tips to remember when using NFP data releases to inform your forex trading:

    NFP data is released on the first Friday of every month.
    The NFP data release is accompanied with increased volatility and widening spreads.
    Currency pairs not related to the US Dollar could also see increased volatility and widening spreads.
    Trading the NFP data release can be dangerous due to the increase in volatility and possible widening of spreads. To combat this, and to avoid getting stopped-out, we recommend using the appropriate leverage, or no leverage at all.

    HOW CAN YOU PLACE A TRADE

    Suppose Current market price of gbpusd is 1.2380 and usdcad 1.3950 just 3 minutes before news

    Place below 4 pending orders:
    1. Sell stop (14 pips below cmp) gbpusd at 1.2366, SL 1.2380 TP open
    2. Buy stop gbpusd (14 pips above) 1.2394 SL 1.2380 TP open
    3. Sell stop usdcad 1.3936 sl 1.3950 Tp open
    4. Buy stop usdcad 1.3964 SL 1.3950 tp open

    SL will be at current market price and dont keep tp blank.

    When to close trades?
    Close after 1 minute of news or use trailing stop to book profit.

    What’s probability of win?
    This strategy will be profitable only if actual data far from expected data or sudden one side spike. However there is no harm to take risk of 12 to 14 pips as gain could be 2 to 3 times of SL. There is no technical or fundamental knowledge required for this type of trading strategy.

    Though trading on financial markets entails high risk, still it can generate extra income on condition that you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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