Betting on macroeconomic data- How to make them work on your profits
Identifying betting opportunities in the continuous flow of news events poses some challenges for players, especially the newcomers. They can be overcome using a couple of general rules mentioned in this article.
- all publications of macroeconomic data can be followed on economic calendars published on such websites as investing.com or FX Street
- macroeconomic data with the highest impact are highlighted for each day, usually with a red marker signifying its price-moving potential
- their fixed time of publication is key to planning and monitoring
- 40 events with a high impact on prices each month
- ACTUAL, meaning the newly published reading, is displayed within single second after the scheduled time
- the higher the reading — the better (only exception — unemployment data) for the currency and related index; example: the higher Retail Sales in the UK, the bigger the boost for GBP and FTSE, index of the London Stock Exchange; once an opportunity is found and it is based on data from the UK — the bets can be made on EURGBP, GBPUSD and FTSE — to diversify and seize all the chances
- the bigger the difference between actual and forecast — the bigger potential for a price change
- how to navigate among the events, macroeconomic forecasts are explained here
- the reaction to the publication usually lasts from a few minutes up to an hour, so make one bet for 5 minutes or a couple of individual 1-minute bets starting, preferably, immediately after the release; time is of the essence (as in this saying if you snooze, you lose, which applies to this situation perfectly)
- some crucial breakthrough events can move the market for a longer time, so on the FinBet platform you can open a bet up to 4 weeks
- FinBet platform offers bets in the following timeframes: 1, 5, 15, 30 minutes, 1h, 4h, 1day, 1 and 4 weeks. Such a variety reflects both the dynamics of price changes and the bettors’ preferences
- macroeconomic data have the biggest impact on currencies and indices, less directly also on stocks or cryptocurrencies
- indices are very sensitive to macroeconomic data in keeping with the old saying that the stock exchange is the barometer of the economy — and macro indicators play the same role — the new reading is a freeze frame of the current economic situation
- much higher impact on stock price comes from the financial reports, major contracts, major changes in the management board, announcing a new groundbreaking innovative technology, developing a cutting edge over competition, mergers and acquisitions
- the prices of cryptocurrencies are not as directly responsive to macroeconomic data as Forex pairs or indices; however this impact is secondary: when market-moving info visibly changes prices on traditional markets — prices of major cryptocurrencies follow suit; for example: in September 2021 the threat of bankruptcy of Evergrande, a Chinese giant developer ($300B debt in default) brought about falling levels of indices, in the next 48 hours market capitalization of cryptocurrencies dropped $350 billion
- follow FinBet social media where we update bettors about upcoming and current events, as well as their impact on prices
- sign up for FinBet webinar whenever they are announced.
Applying these guidelines helps to identify but more importantly benefit from opportunities for profit offered by the continuous flow of data. Also to put them in your schedule, use their potential next time and incorporate batting on news events as a permanent part of betting strategy.
Find us on our social media:
