Options FX
about forecasting the direction of
price movements, anything
with a price that changes and which is quoted on a recognized market can in theory be traded. In practice, only specific types of assets are traded. You can trade individual company shares that are quoted on a stock market or a complete market index such as the NASDAQ, FTSE, etc. You can also trade any commodity, such as gold or oil,or a currency pair, such as the EUR/USD, which are quoted on a foreign exchange market.
These assets are known as underlying assets because you never actually own them as you would do an actual asset but simply forecast how they’re going to change in price. Trading platforms will quote the actual assets that are available to trade.
Trading currency pairs is
particularly attractive to forex traders who have knowledge of the market. Since there are large numbers of combinations of currency pairs and these are changing constantly
WHAT YOU NEED TO DO TO TRADE BINARY OPTIONS SUCCESSFULLY
If you’re going to trade binar y options successfully, you need to gain as much knowledge as you can about the asset you’re going to trade. For example, although you may be fully conversant with how forex trading works, you’ll be better placed if you have detailed information about the individual currency pairs you’re going to trade. It’s also vital that the information
is kept current so you’re not relying on out-of-date data. To improve your chances of success, there are two types of analysis you can undertake :
1. Technical analysis Technical analysis assumes that assets are always priced correctly and the price wil l have been discounted to take account of events. Consequently, prices will always move in a consistent manner and identif ying the ways they have moved in the past will give a guide to the way
in
different directions, there are tremendous opportunities to make money. Foreign exchange offers the largest financial trading market in the world with the greatest liquidity. You can trade with zero commission and no spread, which will lead to increased profits for successful trades.
Using a combination of technical and fundamental analysis will give you the greatest chance of success.
FX TRADER MAGAZINE October - December 2011 57
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86