What is the role of news in futures trading?
Cryptocurrency news can change the direction of the cryptocurrency market or one trend to another. Following the news is important for futures trading because some of the news that are true can affect the price of a coin in a while, so most professional futures traders receive reliable news from reliable news sources and based on them according to the market conditions And their trading style is moving forward. Hot news for the cryptocurrency industry is always accompanied by signs of the next market move, such as the news of the arrival of the Bitcoin halving and Bitcoin Cash halving events.
Maybe being aware of the news related to cryptocurrencies are not so effective in doing futures transactions, but it should be known that the news and the use of fundamental analysis tools in general are important to optimize and improve the position. As we said above, news plays an important role in changing the direction of the market. For example, if you remember, after the rise of Bitcoin in 2021, the price of Bitcoin fell after the bankruptcy of the FTX exchange.
How to use news in trade?
![The role of news in futures trading](https://turboplaycrypto.com/wp-content/uploads/2024/03/PicsArt_03-27-02.58.56.jpg)
You should be aware of the events related to cryptocurrencies in order to get signs of a possible upward or downward trend and use them in your strategy. Most of the digital currencies of the first tier of the market, such as Bitcoin, Ethereum, Ripple, Dogecoin, etc., have very important news that every trader needs to be aware of these news. The role of news in futures trading is that it informs the trader about the latest events and forces the trader to advance a part of his strategy along with this news in order to discover a correct analysis of the next movement of the market and the price of cryptocurrencies. slow
It should be noted that before you monitor the news and use it in futures trading, you must separate the important news from the worthless news and generally create harmony between the important news and your futures trading style. To better understand this, consider the following example! You must have heard the news of the Bitcoin halving event, the outlook and analysis show that the price of Bitcoin has increased during the halving, now you can benefit from this news by opening a long position based on your specific strategy.
This is where a sign to open a long position has appeared and it is time to find the right entry point to open a long position. For a profitable futures trade. News can give you a signal and make your analytical path clearer in futures. Valid and important news related to digital currencies can sometimes determine when to take long and short positions.
Go to crypto chat telegram👇