There are a lot of analysis devices when it comes to trading that are very difficult to use, but if you use them in the right way they can be highly profitable. One such example of this is the Non-Farm Payroll Report (NFP). Let’s take a look at what the NFP is and how it affects binary options trading.
What is NFP?
The Non-Farm Payroll report is widely considered to be one of the most key economic indicators in the USA. It represents total employment in the United States less nonprofits, farmers, government employees and domestic employees. It is published on the first Friday of each month.
Why is it important; because this number is highly regarded as being very representative of the current state of the U.S. economy. The United States economy is the biggest economy in the world and as it goes so does the global economy.
That is why NFP consistently causes one of the biggest rate swings of any event or news release in the FOREX market. Because of this, it is highly anticipated and watched by countless analysts, fund managers, speculators and investors hoping to make a big score off these large rate swings.
How does it affect Binary Options Trading?
As was stated, the NFP almost assuredly involves rate swings and there are not many types of trading that are focused on rate swings more than binary options. It is no secret that trading binary options based on speculations of a news report can be very nerve racking, but it also can be extremely profitable if done right.
Another way that a lot of binary options traders like to score big off the NFP is to catch the natural market corrections after all the wild rate swings start to drift back to normal.
So if you are in the mood to take a shot at some big trading profits with some big trading risks, then trading the NFP is a good choice for you.
A higher than expected reading should be taken as positive/bullish for the USD and Gold, while a lower than expected reading should be taken as negative/bearish for the USD and Gold.
Asset prices (USD & Gold) may fluctuate wildly when NFP is announced so caution for the novice trader is advised. However, these conditions may prove very profitable for a trader that knows how interpret these swings and take advantage of them.