Kavan Choksi: Why Is There A Need For Economic Calendars?

Learning About Economic Calendar with Kavan Choksi

Kavan Choksi is a freelance financial and business consultant who shares his knowledge to help readers everywhere. He believes financial literacy drives success and writes blogs to help you understand financial matters more. Today, he discusses economic calendars.

Economic calendars usually focus on a country's scheduled releases of economic reports. These events can include reports of new home starts, regular reports from the Federal Reserve or other banks, scheduled changes in the interest rate or interest rate signaling, and weekly jobless claims, among many others.

Traders and investors depend on economic calendars for information and trading opportunities. Traders often move in or out of positions in correspondence with an announcement of an event or the heavy trading volume that usually precedes a scheduled announcement.

According to Kavan Choksi, most of the events listed fall into two categories: reports on recent or economic events or projections of future financial or economic events.

Following the economic calendar can benefit a trader who takes a short position. If the trader guesses the nature of the announcement correctly, they can open a position almost immediately before the scheduled announcement, then close it within hours.

In addition to this, economic calendars can be taken for free from financial and economic websites. However, the calendars vary from site to site. While they are referred to as "economic calendars," the actual calendar listings rely on the website's focus and the events of interest for its users.

For instance, the economic calendar on many websites lists only events in the U.S. primarily because these events have a larger market impact than other countries. Other sites let users build their economic calendar by using filters to display or hide events, adds Kavan Choksi.

Kavan Choksi is a business management consultant who shares his insights on business, finance, and economics on his blogs that can be accessed here.