Which Market Binary Options

Which Market Is Best For Binary Choices Trading

Example Of Choices Trading

Previously in the article "Strategies for Binary Options Trading" we discussed the new simplistic methods used in Binary Choices trading.In this short article we are going to discuss how you can determine if you should trade in the Forex, Stock, Commodity, or Index markets. Example Of Choices Trading

Do Your Due Diligence

Due Diligence is the buzzword for doing your own study.It's important for you to study your target market before starting to trade.In conventional trading you'd look at the historical charts, financial reviews, SEC filings, financial indicators, and news reports.In Binary Options trading because the typical trading period is one hour in length, studying the charts, reading the news reports, and watching the effects of financial indicators will be sufficient in most instances.However, numerous experienced traders cannot help themselves in continuing to do more in-depth study.

Which Market Is Best?

Deciding on which market to trade in is a really difficult question.Every market has their pros and cons.Part of your research into which market to trade is understanding the make-up of each market.Remember the Spread technique that I discussed in "Strategies for Binary Options Trading"?In that example I used two currency Assets as the initial choice to make a Call trade and an offsetting Put trade.In reality, you do not have to make the Call trade and the Put trade in the exact same Market.As an example, the Call trade might be in the currency market and the Put trade could be in the Stock market.

So that you can choose which market to trade in let us take a brief look at every of the four markets:

Currency Options Market

The Currency market, also known by the well-liked name of the Forex market is composed of currency pairs like the relational value of the EUR (The Euro) vs.the USD (U.S. Dollar).There are many currency pairs accessible for trading.Each broker has their own list that they make accessible to the public.One of the benefits of the currency market is that it does not have any baggage that it carries with it in the way of stock certificates nor is it constrained by many SEC regulations requiring report filings.It is strictly a relationship between two defined currencies.The currency markets are heavily influenced by economic indicators and world affairs.Also, the price movements may be extremely erratic and change rapidly.Currency markets are open 6 days per week, 24 hours each day.Currency Binary Options are greatest traded between major economic news events. Example Of Choices Trading

Index Choices Market

The Index markets, like the currency markets do not have the burden of certificates and SEC regulations as compared to the Stocks market.However, the Indexes are composed of valuations of numerous Stocks therefore, a major change in any one stock affects the worth of the Index.Indexes have a tendency to have longer trend lines, but can reverse themselves sharply after an economic announcement or world economic occasion.Examples of well-known Indexes consist of: the Dow Jones, Hang Seng, NASDAQ, S&P 500, Bombay 30, IBEX 35, IPC, and also the SSE 180.Index Binary Options are best traded after major company announcements for companies that make up that particular index.

Stock Choices Market

The Stock markets are based on stock certificates issued by companies.Well know examples are IBM, GOOGLE, Yahoo, and Microsoft.While they are affected somewhat by financial indicators due to panic selling or buying by investors they are much more influenced by a company's monetary and productivity news.Stock Binary Choices are best traded immediately after major news and earnings reports involving that particular company.

Commodities Choices Markets

Commodities markets are based on commodities which are agricultural or industrial in their raw and unprocessed state such as gold, copper, silver, oil, natural gas, etc.Commodities are typically traded on the future price of the product.Intraday prices of commodities have a tendency to be Moving Sideways in their Trend lines except when there are major news events about the commodity and around inventory, demand, and import report times.Futures Options are based on 3 month contracts thus making the best time to trade Commodities Binary Options at the start and midpoint of the futures contract period. Commodities are very sensitive to economic reports in which they are related.As an example, a hard freeze report in the citrus growing regions before harvest will affect the futures prices of citrus crops.

As you could see, each market has its ideal time to trade Binary Choices.By performing your own study into the various markets you'll find your ideal point in which to trade.