In the article below we’ll try to explain how to trade crude oil using binary options.
Oil has become over time an active high demand in financial markets worldwide. Today most platforms, if not all, include this commodity in its selection of underlying assets. Known for his term in English, OIL, oil is certainly one of the assets that provide higher profits to investors.
Note also that as one of the most popular oil is currently a very volatile asset, which means that investing in it involves high risk. As you can imagine the oil is not advisable for a beginner investor and trading with no experience in this type of asset. Before embarking on the adventure should know as much about the behavior of oil and perform a thorough analysis.
Of course, to forget any preconceived notions of style make me rich oil immediately, and the like. To make money trading with oil takes discipline, patience and perseverance. Success does not come suddenly comes slowly.
To trade the oil is very important to have a clear strategy. At the time of trading using an investment strategy can make the difference between winning and losing. How we said before, this asset is very volatile and should know to operate securely.
To create an effective strategy one must know very well the underlying asset. For this, a good option is to use the report of the Energy Information Administration. This report can see it on the official website of EIA
Here we find all the information you need to perform a complete analysis so we can create a strategy that is coherent and above all effective.
To design an appropriate strategy to operate in oil binary options you need to know some basic details. For example, you should know that if the price of oil in the report appears to us as negative, recommend opening a CALL option, and that if the value is a minus sign or red it is logical to think that fluctuate in price soon uptrend.
To make sure we should wait until it can distinguish itself more clearly the trend actually tend to rise because sometimes the prices can plummet even further. Once we have more or less light will open 30 minutes a contract expiration at least.
The opposite strategy will open the sale PUT options. For these options we will have to see whether the value of oil in the report appears in green and no sign, ie the value is positive. How in the previous strategy here will also be wise to wait to see who really tend to trend downward and then we will open 30 minutes a contract expiration at least.
When dealing with raw binary options you can use one of two strategies, opening a call option to predict an uptrend or a PUT option open to forecast a downtrend. But what happens if we open an operation for a trend and we were wrong? Given the volatility of the financial asset is likely to sometimes give forecasts which do not end with the expected result.
Luckily, it does remain alert may save some operations if you act in time. Yes we have a call option and the trend is down we can buy a put option for the same amount to cover the operating losses will expire out of the money. And do exactly the same with those open trades for reverse trend that will not provide benefits.
Remember that information is the key to success so to make more accurate predictions in addition to having the best strategy at any given time is also very important to keep up with news, events and breaking events.