The Ultimate Guide
to Forex Factory
Updated for 2020
What is Forex Factory?
Forex Factory is a free website that provides news, economic data, market analysis, and other services to foreign exchange (Forex) traders.
Founded in 2004, it's one of the longest-running and most popular Forex trading resources for independent traders.
I personally have Forex Factory on display at all times on my trading desk.
In this guide, you will learn how to use this valuable website to help with your trading decisions.
The most popular feature in Forex Factory is its economic calendar.
While there are other websites that offer similar calendars, the one at Forex Factory is the most presentable and offers the best user experience.
Why It's Useful
Market prices are often driven by economic news announcements, especially on the short term time frames.
By knowing the schedule of these announcements in advance, you can adjust your trades to handle increased price volatility, or to avoid trading during these periods altogether.
How To Use
At the most basic level, the calendar highlights the periods when potentially market-moving events are scheduled to occur.
It lists the:
- Date and time of the scheduled event
- Currency that is typically affected by the event
Additionally, if economic data is released, the the calendar will also show:
- The previous release number ('Previous')
- The forecast number for this release ('Forecast'), and
- The actual release number ('Actual')
To gauge the expected impact on the market, each event is color-coded based on how much it typically affects the market price.