Guide to a Successful Binary Options Trading
Starting out in Binary Options Trading entails several points that one needs to be aware of. Due to its all-or-nothing feature, this type of investment is, in its sense, simple. Earning the title as the easiest of the financial instruments, its name “binary” suggests only two outcomes: an increase or a decrease in the initial price, which is inferred to its simplistic nature. This does not mean that there is less to comprehend; however, high importance to research must be done to reach an uncomplicated level of understanding binary options.
Having been introduced into the world of finance recently, it has only received recognition from the Securities and Exchange Commission for listing in major exchanges in 2007. The straight forward character of binary options has attracted more investors than the other specialized markets. It does not only appeal to the sophisticated way of trading but also to the manageable behavior of options. Its unique feature is ordinarily challenged head on by professionals of the trade but, even those who have just ventured into binary options, having observed the business rules correctly, can jointly risk capital and reap monetary benefits at the same time. There is no risk of losing more than your invested amount, as well as there is no leverage required to receive high returns. Some employ a systematic way to trade in binary options. Here is salient information that will steer you to a successful startup in one of the fastest growing industries online.
Timeline to Consider When Trading with Binary Options
With every business endeavor, there is always a good time to engage in transactions. The same is true with binary options. It is the best time to trade when the market is bubbling with activities. Consider the early hours just after the market has opened to get the “feel” or the “noise” that the finance buzz emanates. From there, you can pretty much predict the direction that the market is currently heading. There are several assets that are being traded on a 24-hour basis; we have Commodities, Currencies and Indices; with the exception of the Stock market where different time zones of economic capitals are considered. However, there are periods throughout the day that market activity is at a maximum, and this is when the financial zones of the world are overlapping.
Here is the schedule where trading of Commodities is active:
Corn – 9.30am EST to 1.15pm EST
Crude oil (NYMEX.CL) – 9am EST to 2.30pm EST
Gold – 8.20am EST to 5.15pm EST
Natural gas – 9.30am EST to 5.15pm EST
Silver – 8.25am EST to 5.15pm EST
The hours when currency exchange is most active is when there is an overlap of the Asian, London and New York time zones. Take note that it is also during these times that the volatility of the market is at its peak.
The usual trading hours for the stock market is benchmarked against that of the US Stock Market, which normally trade from 9.30am EST to 4pm EST. Of equal importance are the stock markets situated in Europe such as, the FTSE when from 7am GMT to 3.30om trades commence.
Relevant exchanges are traded depending on different time zones. The DJ30, NASDAQ100 and S&P500 observe the US market trading hours from 9.30 am EST to 4.30pm EST, while the DAX30 conforms to that assigned to Xetra Dax.
Getting acquainted with the most basic information that makes binary options work is just the first step. It is noteworthy to keep in mind that there are macroeconomic forces that work hand in hand to influence the movement of market price. Although binary options are beginning to be most commonly traded instrument to date, one must understand that the risks are real and must be taken seriously.