EA EURONIS - FREE Expert Advisor. Earn on Forex market reaction to the change in the discount rate

Forex - Expert - Advisor - Euronis.rar - Other Brokers - Other EA -

Forex Articles Affiliate Program Links

Forex Articles

Earn on Forex market reaction to the change in the discount rate.

In this article I will show you how you can use out news about changes in the discount rate (the same as refinancing) in their trade for profit. This information will be especially useful to those who focused on fundamental analysis, but it may be of interest to traders of different forex strategies.

I think you do not need to recall that the discount rate means the cost "of the original loan, issued by the central banks of other credit institutions (banks). Its increase or decrease has quite a significant impact on the value of a currency. This is a good movement on the international currency market Forex, where you can earn good money. Next, I propose to consider two possible options for generating income from changes in the discount rate.

First. It is based directly on the game at the time of release news on the bet. For example, in the United States in 22 15 about once a month published the Fed's decision on changing the rate of refinancing. In most cases, the market already knows what it is, and the reaction practically does not follow that. However, this happens not always.

Sometimes such a situation develops that the yield of this news is unexpected for forex traders, and then on the currency market starts very strong movement. Details describe it here will not, it is necessary to devote a separate article that will appear on our site. But even if everyone knows what will be the Fed's decision, in fact can also follow a good sale or purchase of currency. At this time, it must necessarily sit behind a computer and monitor the market. I also recommend to close all positions and put the foot and profits.

II. He is not directly connected with the release of news about the discount rate and interest for the long-term investors. In the financial environment, this strategy is called Carry trade. This is very interesting and promising trading tactics that can be used for their purposes.

What we have in the end? Each trader needs to know about the time of release of information on changes in interest rate and use it in their trade. It is unwise to lose sight of such a significant event for the Forex market.

---------------------------------------------------------------------------------------