Binary options on gold how to play
Traders typically will move to safer investments in times of uncertainty but it also depends on what is causing the uncertainty. For example, after the collapse of the housing market inwhich lead to many companies filing for bankruptcy, traders pulled their money from the markets and placed them in safe havens. However, with a potential showdown looming with North Korea, traders may opt to invest in Gold. And, Gold has been moving upwards since the U.
While being in the Gold futures market could be quite risky at the moment, a better alternative would be to trade the weekly Gold binary options. For example, here are all the weekly binary options that are available this morning:.
These options expire at 1: Currently, Gold is trading at However, the greatest benefit is that the trader does not have to worry about being exposed to an unlimited loss. With binary options, the trader can never lose more than he paid on entry. A highly respected trader, trainer, author, and speaker residing in North Carolina. She has over 15 years of experience in trading and in the development of custom indicators.
She is a successful author and has published several books on topics like how to use volume analysis, trading binary options and spreads. The information contained above may have been prepared by independent third parties contracted by Nadex.
In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided.
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Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.
Trading can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U. Fill out our online application in just a few minutes. Trading Gold with Binary Options Trading Gold with Binary Options Trading Gold with binary options allows trader to choose their risk level, even in times of turmoil, which typically creates even higher volatility than normal.
Trading Gold With Binary Options Traders typically will move to safer investments in times of uncertainty but it also depends on what is causing the uncertainty. For example, here are all the weekly binary options that are available this morning: A trader with a bias to the upside, could buy the If the trader holds until expiration and Gold moves up and the indicative price is above Of course, the trader could also exit at any time prior to expiration.
A trader with a bias to the downside could sell the If the trader holds until expiration and Gold moves down and the indicative price is below Again, the trader has the option to exit anytime prior to the expiration, as well. Of course, the trader could also do both a long and a short straddle if he believed there would be a large move in either direction. Exchange fees not included in calculations. Get Started Fill out our online application in just a few minutes. Open an Account for Free Trade all the markets you love.
This article is sponsored by OptionBit which is our recommended broker for trading gold with binary options. Gold is one of the underlying assets traded in the binary options market. This is just as well too, because trading gold in the commodities market is just too risky for most retail traders. The binary options market provides binary options on gold how to play way out to trade gold in a controlled environment, with reduced risk of a catastrophic loss, smaller margin requirements and by consequence, lesser trading capital needed.
There is no fear of gold rolling back by almost a thousand pips against your position before it decides to do as you wish it to. No fears about over-exposing your account. If the trade behaves as the trader wishes, he gets his cost back and some extra. In trading gold, there are several things to consider before your desire to make money from it transcends from the pedestal of dreams to the reality of tangible dollars in your hands.
Firstly, there is the trade types:. Here, the trader bets on the price action touching a chosen price level called the strike price, touch or not touching that price at all no touch. There are variations such as double one touchdouble touch, etc. The price of gold can decide to trade within a price range formed by an upper and lower trend line. Whether this asset decides to stay within the tunnel so created inor break out on either side outis a matter for the trader to decide.
A correct choice is rewarded. How about trying to decide if gold will end higher than the present price by the time the trade expires, or lower? Another way for the trader to possibly make money.
These are three possible outcomes that can translate into some cash to finance that shopping spree that has occupied your mind lately. Let us now help you along the way. Its daily pip movements are anywhere between 1, pips and 10, pips. The key is to get binary options on gold how to play direction right, then set an appropriate strike price and expiry date.
If we get these three ingredients right, the trade will succeed. First, we have to ask ourselves: Traders love gold because it is a safe-haven instrument which they can buy in binary options on gold how to play of uncertainty. The answer is a resounding YES! Eurozone uncertainty was really bothering traders.
When there is uncertainty, the price of gold only heads in one direction; upwards! So now that we had a direction, the next thing was to determine an appropriate strike price.
An appropriate strike price has to be one which is achievable within the price range of movements for goldand which is not beyond a resistance point. An expiry of one week was set as the expiry period. If gold is expected to be bullish, it should either Touch a bullish binary options on gold how to play, or Not Touch a bearish target.
Based on these principles, we had two gold trades on 19 th October, and on 12th January, In the first scenario, binary options on gold how to play used a bullish gold prediction to predict a Touch on a strike price which was within reach, and it performed as we said it would. This screenshot shows a No Touch trade for gold, where we used the principles we described above to say that gold was not going to touch a bearish target.
A very profitable trade it turned out to be. This is a summary of one of the ways to trade gold in the binary options market. There are other ways binary options on gold how to play, but if you master this method, you will make some good money. Binary Options Strategy for Trading Gold Prices This article is sponsored by OptionBit which is our recommended broker for trading gold with binary options. Why Trade Gold through Binary Options? Firstly, there is the trade types: Trade 1 In the first scenario, we used a bullish gold prediction to predict a Touch on a strike price which was within reach, and it performed as we said it would.
Trade 2 This screenshot shows a No Touch trade for gold, where we used the principles we described above to say that gold was not going to touch a bearish target.