Can Gold Be Traded With Binary Options?
Gold is one of the most preferred assets that are traded in Binary Options. Reason behind this is, Gold is considered as one of the safest commodities and typically one of the best speculations during the time of economic volatility.
It has a high volatility and also doesn’t get affected by a lot of economic factors, which makes it a favorite asset of binary traders.
Why Retail Traders don’t trade on Gold?
Trading gold could be a risky thing for retail traders, as it requires a huge capital. Initially around $10,000 requires to be invested, and with this enormous investment, there is always a chance of great losses. That is why, retail traders do not prefer to trade gold.
Why Binary Options Traders Prefer Gold?
On the other hand, in binary options trading, traders have to invest relatively very small amount of money. The loss which could happen is also calculated, because you can only lose, what you have bet on. And the profit or return is also high on gold (up-to 85%).
In this trading, traders have a total control over losses; they often won’t have to worry about the declination of gold price. A fixed payout will be awarded to traders, if their prediction goes right. Just they need to be careful about two things i.e. the direction of price movement and the appropriate expiry time. If they get these two parameters correct, then chances of making good profit increases.
With binary options, there is only two scenarios, either you will lose all the money that you have invested on a single trade or you will get the defined returns offered by your broker.
How to Trade Gold with Binary Options?
Most of the brokers offer three ways to trade gold in binary options. They are "Touch/No-Touch Options", "High/Low Options" and "CALL/PUT Options". You can select them on the basis of criteria defined here http://www.judgebinaryoptions. com/Trusted-Brokers or on many other sites. Some brokers even offer different techniques, but these three are the usual ones. As mentioned above, gold is a highly volatile asset and it can fluctuate from 1,000 pips to 10,000 pips on a daily basis. With this kind of unstable nature, it is recommended to pick "Touch/No-Touch Options".
In the case of touch/no-touch, you will have to get three things right, price movement direction, correct strike price, and expiry time. If you predict these three things correctly, then you can definitely make most out of trading.
Conclusion.
It is true that a highly volatile asset has a lot of pros, but you can’t neglect the cons too. Gold could bring a lot of money to its investors, but at the same time it could also cost in big numbers. You should be very much aware of the latest economic events that happen globally and also be very much certain about your predictions. And the last thing is applied for every trading technique; you should have a well tested and suited strategy before trading.