Options on currency
The currency is considered one of the most popular financial market assets. Trading on the foreign exchange market made key stakeholders, through a combination of currencies in pairs, for example – EURUSD, AUDCAD, EURCHF – in which the value of one currency valued worth another.
That is, how much you need to spend euro to buy $ 1, it turns out – EURUSD. Such currency pairs there is a huge amount. About as much as there is a national currency in the world. The popularity of the currency pairs and trade in the foreign exchange market due to the following factors:
- excellent liquidity and volatility;
- direct dependence on the macroeconomic news market;
- large variety of trading instruments;
- vzaimokorreliruemost different currency pairs;
- a wide range of ways to trade.
Of course, brokers, service providers trade binary options, could not turn on the financial asset in its own trading platforms. Moreover, the large number of traders come to the binary options with the Forex market. On the screen, displays quotes majeure exchange market EURUSD – the most popular forex pairs, the amplitude of the motion which during the day is up to 70-80 points.
and one of the most volatile and zealous pair GBPJPY, the amplitude of the movement is in one trading session up to 150-200 and even 300 points.
Binary options on currency pairs
In fact, trade binary options on the currency pairs trade is no different from any other financial instrument.However, currency pairs, it’s still remain the most popular subject of trading. Why is that? All of the major trends is specific to the type of asset:
- volatile currency pairs and allow for the day to enter into a large number of binary options trades;
- wavelike movement of currency pairs, allow the use of additional options binary options with which you can turn the position double (average) of the transaction, as well as ahead of them to stop, resulting in (when used correctly) can be effectively out of the drawdowns and manage their own capital.
Material terms of options on currency pairs:
Strike price – used in all kinds of binary options, except the “Classic” and “60 seconds”. Such a price level, most brokerage company established as a target at which the investor-trader profits. Use of this level allows traders to achieve a profit, which attain to the level of 600% of the amount invested in the deal. Type option – PUT or CALL. This rule is inherent in any and all types of options and giving the trader the right to buy or sell trading assets. For example, the result of a technical analysis of the price of the currency pair AUDJPY, traders showed a rebound from the price level and make trading decisions to buy. In this situation applies Call-option.
Alternatively, a trader in the analysis of the currency pair EURAUD pair revealed the presence of quotations in the overbought zone, if the falling trend – in this case, use PUT-option (sell).
Expiry date – this condition is applicable to binary option trading any financial asset, including currency pairs.From a technical point of view, an automatic closing of the transaction binary options as a result of which the currency pair purchased, sold back (the difference in price is fixed) or sell currency instruments bought back (at the same fix or loss of profit). Pretty interesting technology, but it is used in connection with the fact that the trader actually becomes the very currency or currency pair, but only makes a certain rate by lowering or raising it.
ATTENTION! Trading binary options involves a high level of financial risk. If you are a beginner – or use insured transactions or free demo account.
Key strategies to binary options trading currency pairs
Especially popular such assets, led to the development of various trading strategies in which traders get profits from proprietary trading. The most common ones are the following: 1. Trade on the news – due to the fact that the currency pairs most strongly susceptible to the macroeconomic news. This type is called high-frequency trading, and is currently used for about 60% of professional traders in currency exchanges. The main feature – it’s time to (among the first), press the keys – to sell or buy, in connection with which such trade on the traders’ jargon, is called “high-frequency”. 2. Buying and selling currency pairs on the basis of fundamental forecasts.This species is also called the long-term trade. Transactions, thus, concluded for a period up to six months. In addition, traders from around the world, in addition to using the web terminal with additional software to trade for:
- Strategies indicator – receiving signals on the purchase and sale of technical indicators, established on the chart tools;
- mathematical strategies – use as a signal to enter the market these mathematical calculations of the access points, places averaging etc.
- bezindikatornye strategy – trade on the price patterns – figures.