Trade Gold in Binary Options Platforms - Super Binary Options

Trade Gold in Binary Options Platforms

Gold is a popular trading commodity in binary options trading due to the higher rate of return and volatility but this factor also makes it a risky choice. In order to trade gold in binary options you need to take a systematic approach; a general outline is given below:

  • STEP#1:   Analyze the data

The first thing is required to be done is to plan. This step has two aspects, which are mentioned below:

    1. Fundamental analysis- In this type of analysis, you need to all the economic, political and social factors that might affect the commodity and its price. One factor can be its demand of gold in the market. Another thing that you need to take into consideration is the political and economic condition of the global market as well as the major gold producing companies. You need to assess how these factors reflect on gold prices.
    2. Technical analysis- In this, you need to analyze the past trends of gold prices and the relevant factors. Try to locate a pattern between different timelines. For example it as been observed that the prices of gold increase during the Christmas. Similarly each trend might repeat itself; although the extent of it might vary.
  • STEP#2:   Choose the type of trades offered

There are two basic strategies that are preferable when you plan to trade gold in binary options:

    1. Double Touch trading: In this you select two levels of strike price rather than one; one level below the current price and one above it. This is a safe and most suitable option because if the future price touches or crosses any one of the levels, the trade will result in a profit.
    2. In-out trading: In this type of option, rather than choosing the price, the buyer has to pick the direction of the movement. There are two predetermined levels, you will have to decide whether the price will remain in that limit, or cross it.

  • STEP#3: Make the prediction

After you have chosen the type of strategy to use, you need to predict the price and direction of movement accordingly. This is a risky venture as the prices might change at any moment, and require proper timing, which you will be able to predict through extensive analysis.

  • STEP#4: Trade gold in binary options

After you have taken into consideration all the above factors, it is time to apply them and trade in gold. Once you have started the trade, you have to wait. It is important to remember that there still might be a lot of risk involved after all the work, but the probability of such a high return makes it worthwhile.

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