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Why do binary options traders wait for the first Friday of every month for the official release of the nonfarm payroll NFP data which is published by the Bureau of Labor Statistics? Generally speaking most traders will close out any positions they can in order to avoid the slippage, and this is a cyclical trading pattern that will repeat itself every month.

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What is NFP? It represents total employment in the United States less nonprofits, farmers, government employees and domestic employees.

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Share InvestManiacs Trading Binary Options on Non-Farm Payroll Days The Non Farm Payroll report, as its name suggests is a report which shows the number of paid employees across the country, not including farm employees, private household employees or general government employees. The report is released monthly and is accompanied with the current rate of unemployment. The report highlights how the economy is doing, whether the rate of employed people is remaining steady or increasing, in conjunction with the number of unemployed people is a good guide to the state of the economy.

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It is only actually important to predict whether the market will move significantly, and not the actual direction in which the market is going to move. Being able to take benefit from non-directional trading is also dependent upon the broker as double one touch trading will be required in order for a trade with no direction to be accepted.

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To trade or not to trade the Non-farms payroll? In the forex market — and, in turn, the binary options market — the release of the data immediately affects the activity of the U. Forex traders care about this because all the extra liquidity brought into the market may help currencies move to a large extent and therefore help bag profits e.

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This is probably the single most popular report to trade off of in Forex, commodities, and other markets. You should always have a system to set entry and exit rules. You cannot just randomly place trades around when the report comes out and expect to win in fact, if you do that, you actually are more likely to lose since reports cause whipsaws and other forms of unpredictability. You need to have a method.

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