Gold is one of the most popular assets for binary options trading. This popularity is caused by strong volatility (price changes). The margin requirement is too high, which raises the risks of trading, at the same time increasing the possibility of earning. The volume of gold on commodity exchanges is very high, due to the pegging of many assets to gold. Therefore, the price of gold is affected by many changes due to changes in the price of oil, stocks, news releases. Today, gold is one of the most stable assets. It is possible to evaluate and predict the movement of gold both by technical analysis and by fundamental analysis.
Why trade gold options.
The binary options market provides an opportunity to trade gold in a controlled environment, with a decrease in the risk of a complete loss of the deposit. Due to the ratio to margin, less deposit is required, while the earning opportunity is not reduced.
There is no problem with the fact that the price of gold can go down a hundred pips after changing the movement in your direction. In binary options trading, losses are limited by the size of the trade. If the transaction is in the direction of the trader’s forecast, he will earn his bet and additional extra money. This supplement can be 81%, or it can be 500%.
** Gold Futures contracts are traded on the NYMEX exchange in New York. Many traders follow the dynamics and quotes of gold prices. It is known that this metal, in addition to its use in the jewelry industry and electronics, is a tool for the formation of the insurance and reserve fund of many countries and international organizations. Thus, the total reserves of gold in organizations such as the IMF and the Central Bank of countries are more than 30 thousand tons.
Before you start trading in gold, you need to consider some points:
- Type of trade. What kind of binary option you choose to trade. One touch, turbo option or higher/lower. It depends on how much interest your payment will be.
- What deposit will you trade with?
- Which binary strategy to choose
- Accurate calculation of money management
** Volatility: This is an economic term that refers to the property of a binary asset as the rate of price change. The higher the volatility, the greater the amplitude of price changes, and the more opportunities for earnings.
[sc:Bot]What are the advantages of gold trading:
- Markets are open 24 hours, it is possible to make trades at all times.
- High volumes – most binary assets are attached to the value of gold. High volatility – the price of a binary option on gold depends not only on economic news, but also on geo-political news.
- Quick opening of transactions and purchase of an asset – since supply and demand are higher than for other assets, the opening of transactions for gold occurs without delay.
- A lot of strategies for trading, both technical analysis and fundamental.
Gold Binary Options Trading Strategy
Two types of analysis are used to trade binary options on gold. Technical and fundamental. Since the price of gold is influenced by a lot of news, you can use news trading strategies, regardless of which asset the news comes out.
Fundamental analysis of gold trading: Pegging many assets to gold makes it volatile and dependent. The release of important news on the dollar, pound, oil, euro, etc. can move the price up or down by 1000 or 10000 points. After stating the reaction of the gold price to the news, you can build a trading calendar. Fundamental analysis of the price of gold is valid not only for short time intervals, but also for long-term investments. Due to the stability of the price of gold, many investors convert their assets into gold.
Gold Trading Technical Analysis: Trading gold is possible using a variety of technical strategies. The most popular strategies are channel beatings, and trending ones. Gold price fluctuations allow traders to trade on minute and five-minute price changes.
The world volume of gold today is approximately 150 thousand tons, while 20% of the metal is in the funds of states, among the population – about 55% and 12% is accounted for by industry. The remaining 16% is used in investments, exchanges and deposits in gold products: shares of companies mining and processing gold, investment funds, shares of jewelry companies, rare coins, gold futures and gold bars.
Conclusion
Binary options on gold allow traders to earn large sums with low investments. However, they are accompanied by high risk In order to receive constant earnings, a trader must clearly analyze the market and draw up a trading plan. Gold trading requires taking into account the news, since the results of technical analysis can be canceled by the release of news.
Tagged with: Binary Options Gold
