Forex news trading is trading forex on news release; in other words, forex news trading is making use of the fluctuation or uncertainty of forex market to make money after important news release.
We know that some important news in forex news trading, especially those related to economy tend to have great impact on ups and downs of the forex market. After the releases of such news, there is great possibility that market prices will fluctuate in a short period. For example, if the U.S. Federal Reserve announces that interest rate will decrease, many traders may short USD and long EUR, JPY etc. with the expectation that value of USD will depreciate in relative to EUR or JPY etc. Within minutes of important economic news releases, the certain currency pair will fluctuate greatly for the better or worse. Thus, forex news trading can bring potential of huge profits if forex traders can make proper use of related news release timely. Moreever, Forex news trading has some distinguishing features that no other Forex tradin strategies could compete with.
http://www.ikonfx.com/forexblog/why-forex-news-trading-is-so-popular/
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