Would you like to buy platinum, oil and gold all at once? Then welcome to the world of the binary options on commodities and raw materials.
If you think that only oligarchs can afford to buy oil, you are wrong. The binary options on commodities and raw materials can dispel this belief.
What are binary options on commodities and raw materials?
All commodities and raw materials can be divided into two groups, namely hard and soft.
The hard materials are gold, platinum, silver etc.
The soft materials are oil, gas etc.
To buy oil or platinum using binary options is simple and easy. You just need to figure out a future direction of the price of the underlying.
Indeed, binary options on commodities and raw materials have an advantage over commodities and raw materials themselves. Affordability, low deposit (from $25) and a profit of up to 80% just within 5 minutes are the key features trading commodities and raw materials through the binary options.
These specific details make binary options a poplar instrument among investors who tend to spend less time to choose an underlying security and follow up.
A binary option on oil
To earn on oil, you need to understand pricing and the market specifics.
One of the important indicators impacting the oil market is a crude oil and petroleum stockpile report released by the U.S. Energy Information Administration (EIA). The report is released every Wednesday at 2:30 p.m in mass media. Also, you can find charts, tables, prices depending on the stockpile volume on the official website of the U.S. Department of Energy.
Data on crude oil mainly depend on volumes explored in the U.S. Cushing and Padd 2 (Midwest).
Reports on petroleum are chiefly based on the volumes produced in the north-eastern US or Padd 1.
The oil prices in the market are impacted by the important news and data. After the news releases, a distinct trend can continue during six hours. If the price moves in the same direction for six hours, this is a signal to buy a binary option for half a day or a day.
To make a profit from the binary options on oil, you need to follow the market data, read analysis reports and experts’ forecasts. You have to take into account the events that can impact the oil market. The binary options on oil are better to buy for half a day or a day.
Formula for success: rise early, work hard, strike oil.
The Binary Options on Gold
Gold is one of the most in-demand commodities. Though it seems a reliable asset, the gold market is rather volatile.
If you invest in binary options on gold for a period of 15 minutes to a couple of hours, I recommend that you perform a technical analysis.
If you put in for a longer period, you need to carry out a fundamental analysis, follow the news, and market changes. Also, you need to understand that the price of gold depends upon the US dollar exchange rate because all payments are made in US dollar.
How to buy a binary option on silver?
You need to browse the broker’s website and select Silver in the underlying security menu:
The chart shows that the price is moving upward. We can assume that gold will continue to rise in the nearest future, therefore we select the nearest term in the expiry menu.
It’s 1:06 p.m. now, and the binary option expires at 1:30 p.m. This means that I invest for a period of 24 minutes. As I expect the price to upward, the price has to rise for at least 0.001 during these 24 minutes.
Next, I select an amount of investment that is $220. I click CALL (UP) because I anticipate that the price will increase:
Now, I need to wait until the binary option expires. Time spins away. So, after 24 minutes my order is executed, and I see the following results:
To earn on the binary options on gold, you need to follow the news, reports and analysts opinions. I recommend that you take various forecasts with care. Actualvalues don’t always come in line with the experts forecasts. Therefore, you need to correlate the analysts’ predictions with market situation.
As I expected, the price of gold increased a little. Thus, I made $176 in just 24 minutes.
Trading commodities and raw materials through binary options is a great chance for making money on solid underlying that doesn’t take a lot of your time or efforts. Binary options make the commodities market affordable to anybody.