Binary Options Trading Using Asset Selection

Binary option trading strategies need to be matched with the assets that are being managed because different assets behave in such unique ways. Different assets carry with them different characteristics such as higher volatility levels and therefore need to be treated differently when considering binary options.

trading options

In binary options trading this also means which type of platform to use: Touch,no touch, range trading or binary options.

Now we know that gold is more volatile than a frequently traded currency pair like the EUR/USD. When a trader has four main classes to select from, forex, commodities, stocks or indices, he has to ask himself what kind of trade would be more simple. What can he grasp better? Well its very hard to be an expert on all or any of the stocks as there is so much information coming out all the time from the firms and so many factors moving the stocks prices. It’s the same with the indices. Gold or EUR/USD though can be easily monitored. They commonly move against. EUR/USD and gold are safe havens so when investors are rushing to the USD they move away from the gold and vice versa. To finish reading Asset Selection as a Binary Options Trading Strategy click here.

EUR/USD has relatively low volatility compared to the incredibly high volatility of gold. Gold is presently in ranges far exceeding its traditional averages, and this means that it is an extremely different investment class than EUR/USD, which has traditionally stayed within the same ranges. This means that EUR/USD trading is suited best to a range options and gold is better suited to either touch options or digital options. In order to properly implement a trading strategy an educated options trader needs to understand their asset and do their research.

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