Using easyMarkets dealCancellation to Trade Friday’s NFP Report
5 January 2017
The global financial markets started the year off with a bang on Tuesday, as traders poured into US stock indices, the dollar and even precious metals in the first active session since the holidays. Market participants are now gearing up for Friday’s US nonfarm payrolls report, arguably the most closely watched economic event of the month. With so much interest surrounding US employment data, traders may expect heavy volatility during and after the release.
Why NFP is so important
The NFP report provides a snapshot of the number of jobs created in the US economy each month, including key information on the unemployment rate, number of hours worked and average hourly earnings. Friday’s report covers the month of December, and will be released at 8:30 am ET on Friday, January 6.
Monthly jobs data provide the pulse of the US economy, allowing investors to gauge the labour market recovery, inflationary pressures and even consumer spending. Therefore, a strong nonfarm payrolls report is normally viewed as bullish for US stocks and the dollar, whereas a weak reading is considered bearish for the US market.
On Friday, the nonfarm payrolls report may show the creation of 175,000 jobs last month, according to a median estimate of economists polled by Bloomberg. The unemployment rate is forecast to edge up to 4.7% from 4.6%, while average earnings are expected to rise 0.3%. A deviation above or below these estimates may trigger a heavy response from the market, which is heavily invested in the performance of the world’s largest economy
Trading NFP with the easyMarkets dealCancellation tool
New and inexperienced traders have been advised in the past to tread carefully around volatile news events, with some experts even recommending they avoid them entirely. However, since launching the easyMarkets dealCancellation tool, market participants can trade nonfarm payrolls confidently this Friday for 60 minutes. That’s because dealCancellation allows traders to cancel any losing position within 60 minutes and have any losses returned to their account. This means that, for a small transaction fee, traders can essentially erase a bad deal as if it never happened. In this case, the small fee associated with the dealCancellation is not comparable to what you might lose if your trade goes against you.
The challenge with trading NFP or any other high-profile event is how quickly the market responds to the event. A handsome profit or devastating loss is literally seconds away. While this is great if you’re on the right side of the trade, it can be extremely painful if you play the wrong side of the market. Before dealCancellation, traders had to spend more time managing their psychology than the actual trade itself when deciding to trade the NFP report. More risk-averse traders simply avoided the release entirely.
Not trading NFP because it is volatile is a huge opportunity. That’s because volatility may equal opportunity in the world of finance. With a tool like dealCancellation, traders can execute the order they think is best without having to worry about blowing out their account for an hour. This may open up tremendous opportunity for major success.
How to use dealCancellation this Friday
Using dealCancellation is quick and easy. After logging into your easyMarkets account and setting up a trade, look for the dealCancellation icon on your ticket. It will be available on all major currencies, gold, silver and crude oil positions.
Before placing your trade, click the “On” switch to enable dealCancellation. This will trigger the 60-minute window to cancel your trade.
After applying dealCancellation, you can see all the trades you’ve protected in your open trades report. The green dealCancellation logo will appear on all protected trades.
In the event you cancel your losing deal within the 60-minute parameter, you’ll get your money back.
Volatility might be your friendl
Whether you’re trading NFP, the Federal Reserve or GDP, dealCancellation can help you capitalize on volatility by enabling you to trade the big events safely. Through dealCancellation, traders have the freedom to enter volatile trades risk-free for 60 minutes- something previously unheard of in the world of finance.
To learn more about how dealCancellation can save you this Friday, visit easyMarkets.