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.