If you are interested in trading, then you must know how important it is to research your target market. In conventional trading, an investor has to study historical charts, financial journals, SEC reports and other complicated things of the market. However, in binary options trading, you don’t have to look at such complicated things. It is enough to keep an eye on economic events and look at some basic chart and reports. In any case, in depth research helps to maximize the possibility of a good outcome from the trade.
You can use different strategies to make the most of your investment in binary options trading. For example you don’t always have to make a CALL and PUT option on the same trade. You can make the CALL option in stock market and PUT option in currency market. Here is a brief review of four markets that would help you decide which market you should choose to place your investment.
It is most commonly known as forex market. Trading in this market takes place on currency pairs like EUR and USD and their relational value. There are a lot of currency pairs that one can choose from. Every broker has his own list that he provides to his clients. One of the greatest advantages of forex market is that it does not have any baggage with it in the form of stock certificates or regulations by SEC which requires a lot of paper work. The forex market is generally affected most by the economic events. In forex market, the price movements are extremely erratic and can move in any direction at any time. This market is open six days a week, 24 hours a day.
Just like currency market, index market does not require any certificates and SEC regulations, but it is composed of valuations of many stocks. This is why a big change in one stock affects the value of other index. Indexes usually have longer trend lines but they can reverse due to any major economic announcement or a global event. The Dow Jones, NASDAQ, Hang Seng, S&P 500, IBEX 35, IPC, and the SSE 180 are well known examples of indexes.
As its name suggests, this market is based on the stock certificates issued by companies. Big companies include Google, IBM, Yahoo and Microsoft etc. This market is also affected by the economic indicators which results in panic selling and buying by the people at times. However, stocks of companies are mainly affected by a company’s financial and productivity news. The best way to trade stock options is right after hearing the major news and financial reports by the company.
This market consists of agricultural and industrial commodities such as gold, copper, silver, oil and natural gas etc. The commodities are traded on the basis of their future price. Generally, future options are 3 months contracts and the best time to trade in future options for commodities is at the start and midpoint of the futures options contract.
Every market has its own benefits and drawbacks. It depends on the trader how much knowledge he has about the market. It is better to make your own research before stepping into any market. If you are a beginner and want to make some money in lucrative options like binary options, then start with minimum investment. In this way, you will get a idea about the mechanics of a market and how to trade in different circumstances.. You can easily decide which market would be best for you if you do a little research on your own.