Calendar effect - Definition

The tendency of stocks to perform differently at different times of the year. This feature of the market can be used to create trading methods in forex or stocks. Closely tied to Fundamental Analysis, certain economic indicators that are announced on a regular Basis have close relationships with the forex market. Market prices are often subject to seasonal tendencies because the availability and demand for an item is not constant throughout the year. For example, natural gas prices often rise in the winter because that commodity is in demand as a heating fuel. In the summer, when the demand for heat is lower, prices typically fall.

Terms near "Calendar effect"

Calendar Spread
Calendar year
Call date
Call money market
Call money rate
Call option
Call protection
Call provision
Call ratio backspread
Call risk
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