How to Read the Economic Calendar Before Trading Deriv Synthetic Indices
By Laxie · · How we review · Affiliate disclosure
Most beginners hear “check the economic calendar” before they ever place a trade, then open one, see a wall of flags, numbers and country codes, and close it again. This guide shows you how to read the calendar in about ten minutes, and, just as important, when it matters for Deriv synthetic indices and when it does not. It takes 10 minutes to learn and 2 minutes to use each trading day.
The short version
- An economic calendar lists scheduled data releases and speeches (interest rates, inflation, jobs figures) with the time, country and expected impact.
- Each event shows a previous value, a forecast and, once released, an actual value. The gap between forecast and actual is what moves markets.
- Check the impact rating (low, medium, high) and only plan around the high ones at first.
- Always confirm which time zone the calendar uses before you rely on a time.
- Deriv synthetic indices are simulated markets, so real world news does not move them. The calendar matters for forex pairs and other real market instruments.
Time needed: about 10 minutes to learn, 2 minutes a day to use.
If you already know Deriv is the platform you want, you can open an account here (open a Deriv account), otherwise keep reading.
What an economic calendar actually is
An economic calendar is a schedule of planned announcements that can move currency, commodity and stock markets. Think of it as a weather forecast for the market: it does not tell you what will happen, only when the storm might arrive. Central bank interest rate decisions, inflation reports, employment data and GDP figures are the usual headliners.
You can use the BLVCKLISTED FX economic calendar to follow along with the examples below.
How to read one row of the calendar
Every row follows the same pattern, so once you can read one you can read them all.
Step 1: Time and country
Each event shows the time it will be released and the country or currency it belongs to. A US release matters mostly for pairs that include the US dollar, a UK release for pairs that include the pound, and so on.
Tip: Calendars display times in a time zone you can usually change. Confirm it matches your own before you plan anything around a release, because a wrong time zone is the most common beginner mistake.
Step 2: Impact rating
Most calendars mark events as low, medium or high impact, often with colors or bull icons. High impact events, such as central bank rate decisions or major jobs reports, are the ones that can move prices sharply within seconds. As a beginner, focus only on those.
Step 3: Previous, forecast and actual
The previous figure is the last release, the forecast is what analysts expect, and the actual appears the moment the data is published. Markets tend to react to the surprise, meaning the difference between actual and forecast, not to the number on its own.
Does the calendar matter for Deriv synthetic indices?
This is where many guides get it wrong. Synthetic indices such as the Volatility indices are simulated markets driven by a random number generator, not by real companies, currencies or central banks. An inflation report will not change how a synthetic index moves.
That means for pure synthetic trading, the economic calendar is not a signal tool. It still helps in two practical ways: it tells you when real markets will be busy (so you can avoid trading while distracted by them), and it teaches you the habit of planning your session before you click anything.
The calendar becomes essential the moment you trade real market instruments, for example forex pairs, which Deriv also offers alongside synthetic indices. There, a single release can move price several times in a few seconds.
A simple pre trade routine you can copy
- Open the calendar once a day, ideally before your trading session.
- Filter to high impact events only for the currencies you plan to trade.
- Note the time and double check the time zone.
- Decide in advance: will you stay out of the market for a while before and after the release, or trade smaller? Write the answer down.
- After the release, watch how price reacted to the surprise. That is free learning.
Tip: Spreads can widen and orders can fill at a worse price during big releases. Many beginners stay out of the market for a few minutes on either side of a high impact event until they have practice.
Events worth learning first
- Central bank interest rate decisions: the most watched events, because rates influence currency value.
- Inflation reports (CPI): show how fast prices are rising and shape rate expectations.
- Employment reports: the US non farm payrolls release is the best known example.
- GDP and retail sales: broad health checks on an economy.
- Central bank speeches: unscheduled tone can shift the market even without new numbers.
Common problems and how to fix them
The times look wrong
Check the calendar time zone setting first. Then check whether your own device is on daylight saving time, since some countries change clocks on different dates.
I traded the news and lost
That is normal for beginners. News moments are fast and unpredictable, and trading is risky. Practise on a demo account first, and consider sitting these events out until you have a routine.
Nothing moved on a high impact event
If the actual number matches the forecast, there is no surprise and price may barely react. The rating tells you the potential impact, not a guaranteed move.
What to do next
Read our explainer on Deriv and synthetic indices, the full Deriv review, and our guide on how to open a Deriv account. Then open the economic calendar and spend five minutes reading tomorrow’s events.
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FAQ
Do economic news events affect Deriv synthetic indices?
No. Synthetic indices are simulated and driven by a random number generator, so real world data releases do not move them. They do affect forex pairs and other real market instruments.
What is the most important part of an economic calendar?
The impact rating and the forecast versus actual comparison. Together they show which events matter and whether the release surprised the market.
Should beginners trade during news releases?
Most beginners are better off watching first. Prices can move fast, spreads can widen, and losses can be larger than expected. Trading is risky.
Which time zone should I use on the calendar?
Use your own local time zone so you do not convert in your head, and double check it after any daylight saving change.
Is the economic calendar enough to predict price?
No. It shows when events happen, not what price will do. Treat it as a planning tool, not a prediction tool.
This post contains an affiliate link. If you sign up through the links above, we may earn a commission at no extra cost to you. Trading involves risk and is not suitable for everyone. This is not investment advice.
Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please ensure you understand the following risks before trading Deriv products: (a) you may lose some or all of the money you invest in the trade; (b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose. Trading involves risk and is not suitable for everyone; this is not investment advice.