After having tried foreign exchange market trading, quite a few investors shift to binary options. Binary options on currencies have a range of advantages over the foreign exchange market.
Profit of the large financial companies trading on the foreign exchange market depends on how much the price rises or falls. Even if the price moves in line with the experts’ forecasts, traders can make a small profit if the rate rises or fall a little.
Binary Options on Currency
If you trade binary options, how much the rate rises or falls doesn’t matter, what matters is the fact that the rate changes even if the change is just 0.001!
A foreign exchange trader risks its capital to get a 1% to 2% profit. Binary options return up to 85% in just 15 minutes.
If you learn from news report that the U.S. dollar will weaken, and Euro will strengthen against some events, then the rate of EUR/USD will most probably rise. In this case all you need to do if you want to make a profit on this currency pair is to click CALL – up, and to choose thetime of expiration, that is, the time when you want to close the trade. For instance, if you choose 15 minutes, and after this period the rate of EUR/USD rises by just 0.001, you get a 70% to 85% profit!!! Investment in the amount of $1,000 returns at least $700 in just 15 minutes!
You might be thinking of the way you can start trading binary options. It’s really easy. Sign up for a broker, top on your account and invest in binary options on currencies.
You can buy a binary option starting from $25!
Many traders claim that to make a profit on binary options on currencies is much easier than on currencies themselves because the profit depends on the amount the price changes, not just on the direction it takes.
How to Make a Profit on Binary Options on Currencies?
All you need to do is to predict future price direction. If you have experience in trading on the foreign exchange market, you know that to predict price direction is much easier than to predict how much it falls or rises.
Today, the most popular currency pairs are EUR/USD, GPB/USD, USD/JPY, and AUD/USD.
To analyze charts, there are many technical and fundamental analysis methods. Besides, you can use special binary options strategies like the Alligator strategy which is in ideal solution for trading binary options on currencies.
Short-term trading like 10 minutes is the best way to trade binary options on currencies. Typically, brokers provide a wide choice of currency pairs as an underlying security.
Also, you can check currency pair forecasts available on this website. Forecasts are mostly daily and accompanied by the compelling charts.
How do I Earn on Currency Pairs?
Typically, to make a profit on currencies, I use the most effective and simple strategies like based on trend, news reports, and forecasts. Besides, I deal with AnyOption, the most reliable broker. For instance, GBP/USD is showing a clear trend at the moment:
I select the nearest term of expiration (the moment when a binary option expires):
It’s 3:40 p.m. now, the option expires at 4:00 p.m. meaning that I invest for a period of 20 minutes. Then, I type the amount of my investment, that is, $140 and click CALL because I expect the rate of GBP to rise during next 20 minutes:
By the way, you can binary options on currencies 24 hours a day except for weekends and holidays like New Year.
16 minutes later, I get the result of the trade:
Most investors start a career in trading exactly with currency pairs, because they can make a high profit really fast. However, I advise you to trade not only currency pairs, but also the U.S. and European companies stock that typically return your investment within a short period of time.
“Time is the currency of the 21st century”.