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May 7

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News Trading Strategy on Quotex: How to Profit From Economic Events

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8 min read

News Trading Strategy on Quotex is one of the fastest ways to catch big market moves — because major economic releases can shift prices in seconds. That’s exactly why traders love it… and also why many lose money on it. When the market reacts to news, it doesn’t move smoothly — it spikes, reverses, fakes out, and punishes hesitation.

In this guide, I’ll break it down in a simple way: how to pick the right economic events, how to read the calendar like a trader (not a beginner guessing), and how to enter trades without getting trapped in chaos. If you do it right, news trading isn’t gambling — it’s structured volatility you can learn to use.

Why Economic News Moves Markets

At the core, economic news trading is about one simple idea: strong data = stronger asset, weak data = weaker asset. But here’s where it gets interesting — the market doesn’t react to the number itself. It reacts to the difference between what was expected and what actually came out.

Let’s say:

Forecast: 200K new jobs
Actual: 300K

That’s a positive surprise, traders rush to buy, price jumps. This is called a news release market reaction, and it’s driven by expectations, not just facts.

Now add another layer: market sentiment news.

Sometimes the market already “prices in” expectations before the release. That’s where the classic phrase comes in: “Buy the rumor, sell the news.”

Example:

Traders expect strong data, price rises before release. Data comes out strong, instead of rising, price drops (profit-taking). That’s why beginners get confused — the logic feels backwards.

Volatility is your opportunity. News events create market volatility news spikes because big players enter positions instantly, algorithms react in milliseconds, liquidity temporarily disappears.

The result? Sharp, aggressive price movements — exactly what traders in fundamental analysis binary options are looking for.

How to Read the Economic Calendar for Beginners

If you don’t understand the calendar, you’re basically trading blind. Learning how to use the economic calendar for trading is step one.

Here’s how to read it like a trader:

Date and Time

This tells you exactly when volatility will hit. Timing is everything in economic calendar trading — you need to be ready before, not after.

Currency Affected

Each event impacts a specific currency:

USD → affects EUR/USD, GBP/USD, etc.
EUR → affects EUR pairs

This is how you choose what asset to trade.

Event Name

This tells you what’s being released:

NFP (jobs data)
CPI (inflation)
Interest Rate Decision

Some events move the market more than others — we’ll cover that next.

Impact Level (Low / Medium / High)

Ignore the noise. Focus only on high impact economic events. That’s where real money moves happen.

Previous Value

What the last result was.

Forecast

What analysts expect.

Actual Result

The real number — this is what moves the market.

The key idea in how to trade the economic calendar: the bigger the gap between forecast and actual, the stronger the move.

Three solid options where to find calendars:

Quotex
Investing.com
Forex Factory

They let you filter events and focus only on high-impact releases.

The Best News Events to Trade on Quotex

Not all news is worth trading. Some events barely move the market, while others can move it like a rocket. Here are the three you should focus on if you want consistent results in how to trade high impact news events.

Non-Farm Payrolls (NFP)

The king of volatility.

Released: First Friday of every month
Measures: US job creation
Impact: Extremely high

This is the go-to for any NFP trading strategy binary options approach.

Why it works:

Jobs = economic health
Strong jobs = stronger USD
Weak jobs = weaker USD

But here’s the catch: NFP often creates fake first moves, then reverses hard. You don’t jump in instantly — you wait for direction.

Interest Rate Decisions

These come from central banks like:

Federal Reserve
European Central Bank
Bank of England

This is where interest rate decision Forex trading becomes powerful.

Why it matters:

Higher rates = stronger currency
Lower rates = weaker currency

But even more important than the rate itself is the guidance (what they say about the future).

CPI (Inflation Data)

Inflation drives everything.

Measures: Consumer price changes
High CPI = possible rate hikes
Low CPI = possible rate cuts

That’s why CPI news trading binary options setups are so popular.

Secondary Events Worth Watching

Not as explosive, but still useful:

GDP (economic growth)
Earnings reports (for stocks/indices)

These can support your economic calendar trading strategy, but they’re not your main focus.

If you understand these three events and how the market reacts to them, you’re already ahead of most beginners. The next step is execution — how to actually enter trades without getting destroyed by volatility.

Two Approaches to News Trading on Quotex

When it comes to trading before and after news release, there are two main ways traders approach the market. Both can work — but they require very different levels of experience and risk tolerance.

Let’s break them down.

Pre-News Setup (Before the Release)

This approach means entering a trade 5–15 minutes before the news drops, based on the current trend and your technical setup.

Example:

Market is trending up
Price is respecting support
You enter a CALL before the release

The idea: the trend continues after the news.

Pros:	Cons:
You get a better entry price	Extremely risky
No need to chase the move	News can completely reverse the trend
Can catch the full breakout	You’re exposed to the spike (biggest danger)

Important: many experienced traders close their positions before the actual release to avoid unpredictable spikes.

Post-News Entry (After the Release)

This is the smarter and safer method, especially if you’re just starting.

You wait 1–3 minutes after the news release, let the initial spike happen, and then:

Identify the real direction
Wait for a small pullback
Enter in the direction of the move

This is the core of a news spike trading strategy binary options approach.

Pros:	Cons:
Avoids chaotic first seconds	You miss part of the move
Reduces fakeout risk	Requires patience and timing
Clearer direction

If you’re learning how to trade news on Quotex step by step, start here. It’s far more controlled.

Which one should you use?

If you’re honest about it — pre-news trading is closer to guessing. Post-news trading is closer to strategy. For most traders, especially beginners, post-news entry wins.

How to Avoid News Trading Traps and Fakeouts

Here’s the part that destroys beginners: news fakeout trading. You see a huge spike up, you buy, price instantly reverses, you lose.

Why does this happen?

Because the market isn’t clean during the news. It’s driven by:

Stop hunting (triggering retail traders’ stop losses)
Liquidity grabs (big players filling orders)
Market maker positioning

The result: a false move first, real move second.

3 Rules to Stay Safe

If you remember nothing else, remember this:

Never enter at the exact moment of the release. That’s peak chaos.
Wait for the first candle to close after the spike. Let the market show its reaction.
Confirm with a second candle.

This is the simplest way to handle how to avoid news trading traps without overcomplicating things.

Combining News Trading With Technical Analysis

Here’s where things get powerful.

News alone = chaos.
Technical analysis alone = incomplete.
Together = high probability.

This is how trading Forex news on Quotex should actually be done.

Example of a High-Quality Setup

Let’s say:

NFP data comes out strong (bullish USD)
Price is sitting on a key support level
A bullish pin bar forms after the spike

Now you have:

Fundamental confirmation (news)
Technical confirmation (price action)

That’s what traders call confluence and it’s exactly what you want in high impact news trading.

Don’t force trades when:

Price is stuck in the middle (no clear structure)
Market is ranging randomly
No clear reaction after news

If the chart looks messy, it probably is.

Money Management Rules for News Trading

Let’s be real: news volatility trading strategy setups are riskier than normal trades. Even good setups can fail — just because the market is moving fast. So you adjust your risk.

Core rules:

Reduce your trade size. Risk no more than 1% of your deposit per trade during news.
Trade only high-impact events.
Track news trades separately.

This helps you understand what actually works in your binary options news trading strategy.

Conclusion

Let’s keep it simple. If you want to succeed with a News Trading Strategy on Quotex, focus on this:

Trade only the events that matter (NFP, rates, CPI)
Read the calendar before, not after
Use the post-news pullback approach
Avoid fakeouts by waiting for confirmation
Reduce your risk during volatile releases

This isn’t about being fast — it’s about being smart. Practice your setups on a demo account first. Test how the market reacts. Build confidence. Then move to real money.

Start with the Free Demo Account

FAQ

What is news trading in binary options?

It’s a strategy where you trade price movements caused by economic news releases. Traders use volatility from news events to enter short-term positions.