In this article, We learn about "Catalyst".Let's Go!

A Catalyst are news or economic events that influence traders to buy and sell assets quickly.

This often causes the asset's value to change, often at a rate greater than the asset's normal range of fluctuations.

Catalysts can be literally anything, but for Forex traders, catalysts tend to come from monetary policy news/changes (e.g. interest rate changes, quantitative easing), economic updates (e.g. changes in employment, inflation, GDP, etc.). ) and geopolitical updates (such as Brexit).

Identifying and understanding catalysts is a key component of a trader's skill set, as trading opportunities only come when the market moves and understanding when directional bias may change.

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