Best Time To Trade Oil In Binary Options - Super Binary Options

Best Time To Trade Oil In Binary Options

Oil is one of the famous commodities in binary options, this is because when you Trade Oil in Binary Options the level of risk involved, in comparison to the normal market is highly reduced.Although the trade timing is crucial in earning a profit; which is only determinable by extensive research.

Technical analysis Trade Oil in Binary Options

Technical analysis is the study of the past results; mostly graphs and charts of previous trades and years are available. Although this is a useful strategy, but is only useful for oil trading for judging when to enter and when to exit the trade. The analysis does not provide much guidance on the direction and the change because of its volatile nature which makes the determination of a pattern quite difficult; even then the pattern might break at any moment.

Fundamental analysis

This is the type of analysis in which future predictions are made according to current social, economic and political conditions related to that oil or any other commodity. The factors within the scope of this are numerous. Mentioned below are some of the prominent factors:

 

  • Inventory reports- Inventory reports are commonly issued; these state the oil in stock held by firm and companies. This has an indirect relation to prices, but it is observed that if the inventory is high, the price will decline as the demand will be less and vice versa.
  • Quotas of OPEC- This is an organization of petroleum exporting companies, and fulfill most of the demand of the world. This will provide them a great control over the price in the market, so you should observe the press releases and other such announcements by them. Also, they have set quotas for different areas, these also affect the price.
  • Weather pattern- During the cold weather, the consumption of oil increases especially in the developing or underdeveloped areas. This results in the increase in price and demand. Under warm weather conditions, the impact is opposite.
  • Government policies- Oil reserves and production is under the control of the government. So the government policies of the major producers all alter the price.
  • Political conditions- Since political conditions and government conditions are related, they affect the price.
  • Cross-index demand- Since oil trade takes place in US dollar, the change in the rate of the dollar also affects the price of oil directly.

After reviewing all the factors, one can determine when to enter and Trade Oil in Binary Options.

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