Trading with binary options currency pairs is extremely easy. The list of assets in the majority of platforms features both the bigger and smaller currency pairs, which present traders with many opportunities for profit during the week. Many of the people that go for this kind of trading also trade regular Forex, but it`s not necessary to have any background in order to be profitable.

Fundamental analysis is the examination of market statements and data and how it affect the movement of an asset. This is the most basic kind of analysis, so it`s also good for binary options beginners. The tools you are going to need are an economic calendar, a place where you can see the latest market updates and a basic asset price chart featuring historical data. You can find such a chart in every platform. Usually it`s for free and it`s quite easy to understand.

Forex Trading Strategy

As currencies are paired together when trading, you will need to consider both when trading. The best approach is to utilize relevant economic data to forecast how the paired currencies will move in relevance to each other. There are many pairs that are tightly related and follow a tight range, but economic data can lead to major value fluctuations that can be predictable. The more surprising the report data, the more accurately you can predict the price behavior. If the difference is smaller, then so will be change in the price.

The perks of utilizing an economic data calendar is that it gives you the specific dates and times of when economic reports are due to be released, as well as market analysts expectations. Most often, information that is related to both of the currencies that are paired will not come out at the same time. Due to this, one of the currencies might appear to be in an upward or downward trend and behave in a different manner than the pair itself. This happens more often that some people would guess and can be the basis for solid binary options trading.

You should always check the broader picture and general market news, in order to see if there are any other factors that might be affecting the movement of the currency or pair. There are other types of information besides economic releases, which can also affect the value. Also, have in mind that the economic performance of one country can affect the economic performance of other countries, so it`s important to always consider the links and correlations between the separate factors.

The final reference is the price chart. It can show you precisely how the prices are changing following the release of economic data. After you`ve made sure of the price direction, the next thing you should do is to engage into a trade with the price prediction closely in-line with the current movement. Shorter expiration intervals will yield the best results with this approach, as most economic data will not have such a lasting effect on the market conditions. As long as the price behavior keeps being relatively predictable, it should be possible to complete numerous successful trades.

Go Back