Economic report releases typically evoke volatile movements in the currency market, providing plenty of short-term trading opportunities for breakout traders.

However, not all news reports are tradable. Several may not have substantial effect on the forex market while others do. Therefore, before deciding on trading the forthcoming news, market traders may want to find out whether the news is really worth trading or not. Market traders can discover the worthiness of the news by browsing at the economic calendar's special features, such as, for example, taking note of all essential news in red.

There are generally two ways in forex news trading. The first is by "guarding" the breakout channel. Currency traders simply put Buy and Sell limit orders on both sides of a price range, so when the economic data comes out one of the orders will most likely be triggered. Although this method is extremely simple, it also contains real risks of potentially triggering the 2 orders as the forex market is shaken by the news release. During such "double-hit" situations, traders will face losses on one, or in some instances, even both trades.

The other approach to currency news trading is by essentially analyzing the info. Forex traders can predict the most probable result of the news by searching at such economic calendar fields as: "Forecast" and "Previous". Figures in those fields can provide an idea about the expected information that is to come up.

Then, forex traders would keep an eye on the news report and give attention to the actual numbers released. If the data come as a shock, meaning that they are not close to what was forecasted, then traders would evaluate opening a trade position in relation to the situation. If the news data carries a beneficial surprise, they would open a Long position. And if it is unfavorable, then they open a Sell position. This news trading requires more deliberation from currency traders, but is also a lot more effective as it features lesser risks.

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