Economic events to trade with Nadex
Events can give important insights into a country’s economy – you might think of them as an economic health check. With Nadex, you trade on current economic events, predicting the figures and making your own forecasts.
Some of the biggest economic events in the US are the release of the nonfarm payrolls report, weekly jobless claims, the unemployment rate, and gross domestic product (GDP) estimates. Trouble is, market reactions are hard to call – good news doesn’t always cause a rally, expected numbers sometimes get little more than a shrug and a yawn, and bad news doesn’t always cause a large selloff. With Nadex Binary Options, you predict the actual official numbers, giving you more control and avoiding the market-wide uncertainty surrounding major economic events.
What are economic events and how can you trade them?
Economic events help to show the macroeconomic health of a country. The more significant the economic event, the more it has the potential to affect financial markets. Major events are found in an economic calendar, which will show upcoming reports and releases. Traders can then speculate on the figures directly or trade on related markets.
Economic events are closely linked to some economic indicators, which are data or figures that reflect financial health and stability. For example, the Employment Report is a key economic indicator, as is the Initial Claims report. These reports include the number of nonfarm payrolls added or lost, and the number of weekly jobless claims made – you can predict these figures and trade on them with Nadex using binary option contracts.
With Nadex, you predict the actual numbers from the report or release. This is important – ahead of the release of major reports, you’ll hear a lot of ‘stocks are likely to…’ and ‘the markets should…’ Nobody, including economists, can be completely sure what the markets will do. While some traders love volatility and can make money trading on market movements, speculating on the reports themselves gives you pinpoint control. And if you want to try your hand trading other markets too, there are plenty of opportunities on Nadex.
Which major economic events can you trade on Nadex?
We offer contracts based on the release of the nonfarm payrolls report, weekly jobless claims report, the unemployment rate, and US GDP. Whether you think key economic figures are going up or down, you can turn your prediction into a trade.
Trading on the nonfarm payrolls report
Nonfarm payroll is part of the monthly Employment Situation report by the Bureau of Labor Statistics. It shows the number of jobs added or lost in the US economy over the last month, excluding jobs in the farming industry, some government workers, private households, proprietors, and employees in non-profit organizations.
You can trade binary options based on the nonfarm payrolls report: simply select the strike that contains your prediction for the number of jobs that will be added or lost. The whole trade is built around the simple question ‘will nonfarm payrolls finish higher than or equal to a particular number?’
As of November 2019, the US economy has had the longest streak of job creation in its history, but this ended in April 2020. What’s your prediction for future nonfarm payroll releases? You can trade your predictions on the Nadex platform and be your own economist.
Latest nonfarm payrolls release
June of 2020 change: 4,800,000
Next nonfarm payrolls release
Friday, August 7, 2020
Binary options based on nonfarm payrolls open at 8 a.m. (EST) on the first business day of the week leading up to the release.
Trading on the weekly jobless claims report
The jobless claims report is issued weekly in the US, detailing the total number of Americans filing for unemployment benefits. Economists weigh multiple factors when predicting whether the number of claims will rise or fall – make your own prediction with a simple yes or no trade.
You can trade binary options based on the reported number in the weekly jobless claims report by picking the strike that contains your prediction. You will need to answer one simple question: will the number of new jobless claims be higher than or equal to the strike? If you think yes, you buy. If no, you sell.
Latest jobless claims release
Week ending June 27, 2020:
Initial claims: 1,427,000
This number was a decrease of 55,000 from the previous week’s revised figure of 1,482,000. The four-week moving average was 1,503,750.
Next weekly jobless claims report release
Thursday, July 9, 2020
Binary options based on the number of jobless claims open at 8 a.m. (EST) on the first business day of the week leading up to the release.
Trading on unemployment rate
The US unemployment rate is part of the monthly Employment Situation report by the Bureau of Labor Statistics. The statistic measures the number of people who are jobless and actively seeking employment, and the unemployment rate is expressed as a percentage.
Each month, you can trade Nadex Binary Options based on the US unemployment rate. You can use your own economic predictions to pick a strike, answering the question ‘will the unemployment rate be above or below this strike’? If you think it will be, you buy. If you think it won’t be, you sell.
Latest unemployment rate
June 2020: 11.1%
Next unemployment rate release
Friday, August 7, 2020
Binary options based on the unemployment rate open at 8 a.m. (EST) on the first business day of the week leading up to the release.
Trading on real GDP figures
US GDP is calculated on an annual basis and a quarterly basis. It’s one of the key economic indicators for the health of the economy, showing the total monetary or market value of finished goods and services in the US. With Nadex, you can trade on quarterly GDP announcements, which are given as a percentage increase or decrease.
Binary option contracts based on the advance estimate of real GDP are issued quarterly and have a one-week duration. You can make your prediction for GDP figures by picking your strike, and choosing whether to buy or sell. You are essentially asking the question ‘will the advance estimate of real GDP be higher or lower than this strike’? If you think yes, you buy. If you think no, you sell.
Latest GDP (advance estimate)
April 29, 2020 - Q1 2020: -4.8%
Next GDP release (advance estimate)
Thursday, July 30, 2020
Binary options based on the advance estimate of real gross domestic product data open at 8 a.m. (EST), five trade days before the GDP report is released by the United States Department of Labor.
Start trading current economic events contracts with Nadex
Test your skills with a Nadex demo account. You’ll get $10,000 in virtual funds, so you can practice trading nonfarm payrolls and weekly jobless claims. Put your economic predictions to good use – trade them on Nadex.