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Fundamental Analysis

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Fundamental Analysis is a method to predict future price movements of a financial instrument based on economic, political, environmental and other relevant statistics, which can affect supply and demand, directly or indirectly, of the underlying financial instrument.
The general objective of the Fundamental Analysis is to determine whether a specific financial instrument is undervalued or overvalued.
Fundamental Analysis

Its main purpose is to continuously evaluate the prices of each instrument and predict a possible outcome. Fundamental traders buy an asset or instrument if it’s undervalued predicting a future rise in the price and sell it if it’s overvalued.

In the Forex and CFD markets is not very common to find them, but many traders use Fundamental Analysis to operate in a variety of markets when financial news are about to be revealed. It is also important for successful traders to understand the Fundamental Analysis and how to apply it.