How to use the news on trading IQ Option

There are multiple factors that influence the market in which the major ones are economic, financial, and political factors. Here news also plays a part in a real-time situation like if the news is positive then the stock price goes up and if the news is going down then the stock price will go down. Now the question arises which news should a trader follow.

Economic releases and economic news

Economic release and economic news is the first point of interest for the traders. Here are the economic reports and statistics by which economic releases or news are published:

gross domestic product,
unemployment,
inflation,
interest rates,
retail sales,
and other data.

**Economic news has a huge impact on markets**

Financial news

Companies that largely affect the stock prices provide financial reports to represent financial news. If the financial figures are better than the forecast, there will be a hike in the company’s share price. And otherwise, if a company’s financial figures are worse than the forecast, the share price will decrease its value.

Political news

Here are some political events by which a country’s health is affected:

elections,
revolutions,
impeachments,
death of political leaders,
and other events that may cause political instability.

So, it makes it important to follow political news.

Unforeseen events

Well, there are unexpected events that influence markets like natural disasters or terrorist attacks. Natural disasters like tsunamis, droughts, earthquakes.

**Natural disasters can change markets direction**

Note that, the reaction of the market to news usually lasts for one to two hours but sometimes it can last from three to four days also.

To not miss important updates about releases, follow our smart newsfeed that collects news from multiple sources in the market analysis section on the left-hand side of the panel. You can also scan an economic calendar on the IQ Option platform.

Trade economic news on the IQ Option Platform

Most important economic news and releases

Economic releases are the publications of various economic reports and statistics like the gross domestic product, unemployment, inflation or interest rates, retail sales, industrial production index, trade balance, and more. There are other surveys and data that are announced by key representatives of major national financial institutions.

Example of news impact

The US Federal Reserve raised its key interest rates by 25 basis points from 1.75 per cent to 2 per cent on the 13th of June 2018. And as a result, the dollar hit a three-week high against the Japanese Yen following the Fed announcement and strengthened against the other emerging market currencies.

**Change of key interest rates affected USDJPY market**

So, in this situation, a trader can make a profit by buying the US dollar and selling the Japanese Yen (USDJPY). On the left-hand side panel, the newsfeed is available in the market analysis section.

**Market analysis tab at IQ Option platform**

You can also use the forex calendar to follow the economic news and releases in the same section. There are many other types of important news you can use in trading at Binary Count to read.

How to trade political news on the IQ Option platform

Political events

**Political news and currency strength**

There is no doubt that politics plays a major role in affecting the country’s economy and as a consequence, it has a major impact on its currency. Here are some most important political events that affect the economy:

elections,
revolutions,
impeachments,
death of political leaders etc.

We can also say that there is almost everything that may cause political instability. You must follow political news if you trade currencies at IQ Option.

Brexit referendum as a political news

Consider an example, In the UK on 23rd June 2016, the Brexit referendum took place which results in both Britain’s economy and the British pound as the British vote impacted them. At that time the UK’s currency dropped 10 percent against the dollar and reached its 31 year low overnight after the vote. Traders were selling Pounds while investing in other stronger currencies.

Unexpected events

As we have discussed already that there are also some events other than politics that may influence the markets. These may include terrorist attacks or natural disasters like earthquakes tsunamis or droughts.

**Earthquakes may influence markets too**

Keep in mind that a market reaction to unexpected breaking news is usually more effective than scheduled data releases.

How to trade financial news on the IQ Option Platform

What is financial news?

There is also financial news that influences the market situation. There are publicly traded companies that are required to submit various financial reports that contain important financial data like:

revenue,
net income,
earnings per share,
cash flows etc.

Well, this kind of information influences a company’s stock price a lot. If you want to trade successfully, follow quarterly and annual reports at IQ Option. Usually, if the basic figures are better than the forecast a company’s shares increase in value, and if the report is below the market expectations there will be a decline in the company’s shares.

**Most common types of financial reports**

Q2 2018 financial report and its influence on stock price

Consider an example, Google’s parent alphabet published quarter two results, and the revenue in quarter two grew by 21 percent as compared to last year’s second quarter that amounting to 26 billion dollars. The company’s financial results beat market expectations following the news. The shares of Alphabet increased by 5.3% and reached an all-time high of $1275.

**Better than expected revenue on Google stocks**

Earnings calendar at IQ Option

If you do not wish to miss the most important financial figures, scan an earning calendar. You can find the earnings calendar in the market analysis section on the left-hand side panel. Get to know how to use the earnings calendar at IQ Option.