An Economic Calendar is a tool used by investors and financial experts to keep track of significant economic events and news releases. These events, often referred to as "fundamentals", can cause significant volatility in the market as liquidity fluctuates. Knowing when these releases will occur allows traders to strategize accordingly, either by trading the news or avoiding trading during these periods to minimize risk.

An Economic Calendar is essential for traders because it informs them of major economic events that could impact the market. This is crucial because these events can cause large amounts of market volatility as liquidity evaporates, potentially leading to widened spreads. Being aware of these events helps traders avoid surprise market movements and strategize their trades more effectively.

High Impact News refers to significant economic events released by governments and central banks such as the 'Federal Open Market Committee' in the USA. These events typically cause large spikes in volatility for any Asset related to the economic news release. Any major news release can generate volatility in the associated pairs or assets.

Trading during High Impact News events can be risky, especially for less experienced traders. The market can become highly volatile, potentially leading to significant losses. Therefore, it's recommended to wait at least 15-30 minutes or up to an hour after the release before attempting to trade. Unless you are a seasoned trader with extensive experience trading financial events, it's often safer to avoid trading during major news releases like FOMC, central bank meetings, central bank rate decisions, Core Consumer Price Index (CPI), or Non-Farm Payroll (NFP).

Trading during High Impact News Events comes with the risk of extreme market volatility. This can lead to slippage, where trades are executed at a worse price than expected. Additionally, the potential for losses can be higher than your stop loss position might suggest. For these reasons, it's recommended to exercise caution when trading during these news releases.