Forex Binary Options
Who said you needed thousands of dollars to trade in the forex market?
Thanks to the internet, instantaneous placing of call and put options is now possible. Hence, most binary options contracts have short term expiration so you can see how much profit you received in a matter of hours. Also, trading is so much simpler since you won’t need highly sophisticated tools to determine the level of price change, instead, you only have to predict whether the value of a currency will increase or decrease. Even with a 0.0001 change in the price of the currency, you can now receive as much as 81% payout!
Binary Forex Options Trading
In the past, if you wanted to deal with foreign exchange, needed to have a huge capital, or at least be a part of a large financial institution or a multinational corporation. But thanks to the internet, anyone who has a few thousand dollars and is interested in forex trading can participate in the market. With the birth of binary options trading however, individual traders can now use a $100 starting capital and expect as much as 81% returns! Moreover, traders no longer have to worry about cash flow since most binary options contract have short term expiration.
Forex Options Basics
Forex options is the safest way to protect yourself while trading in the foreign exchange market. Usually when trading Forex you would exchange one currency for another ie. GBP/USD: exchange the British pound for the US dollar.
Trading Forex Options though gives you the right to set the date and price of a forex trade to some point in the future but not the obligation to do so. So if the market goes against you can back out, and all you’ll lose is the premium you paid to the seller/broker.
Forex options trading strategy
For many investors, forex options trading present a great way to increase profit as well as minimize risk to their portfolio. Most market participants involved in hedging (the act of minimizing risk) are corporations which are engaged in import and export and would like to secure future exchange rates. On the other hand, speculators (investors seeking to increase profit) use forex options to profit in both trending and ranging markets.
Forex options trading – Is it a profitable investment?
Whenever the topic of ‘Option Trading’ crops up as a topic of conversation, people naturally tend to assume that it is about the stock market. This is not surprising as options trading had been the prerogative of the stock market for many decades prior to the development of the forex market for the retail trader. However, ever since the forex market had become readily accessible to the retail trader, forex options trading have also become immensely popular.
Binary Forex Options – How to Trade Currency Pairs
It is a known fact that the forex market is a very lucrative market. There is a lot of money to be made by just trading currencies from the comfort of one’s home. Having said that, it is also known that to achieve consistency in profitability in forex requires immerse amount of prior preparations in the sense that you need a solid background in forex education and a reliable set of trading tools.In addition, to be able to profit from any trading scenarios, you have to know the DIRECTION of the market movement and the EXTENT of the price movement.
Forex Options Trading
Normally when we are talking about option trading, we are referring to stock options as the underlying asset for the option is a stock. Nevertheless, options trading can also be applied to other financial assets like currencies. When this is the case, the options will then be designated as a forex options.
Forex options trading definition
By legal definition, forex options trading are a contract between two parties, a buyer and a seller, in which the buyer possess the right to buy or sell, but not the legal obligation, a certain amount of a particular currency against another specified currency at a fixed price called the ‘strike price’ on or before the expiry of the option contract. For this privilege, the buyer of the option will pay the seller a one-time lump sum called the ‘premium’.
Forex Focus by IGIndex (17/6/10)
EUR/USD Performance Chart (17/06/10 19:00)
| Daily % Chg |
0.30% |
3 months |
-8.80% |
|
| 1 week |
2.22% |
6 months |
-13.83% |
|
| 1 month |
0.13% |
1 year |
-10.78% |
Details
| Prev close | 1.2314 | 52 week high | 1.5145 | ||
| Last trade | 1.2351 | 52 week low | 1.1876 | ||
| High | 1.2413 | Low | 1.2242 |
Bloomberg Median Forecasts
| Q1 2010 | 1.39 | Q3 2010 | 1.20 | ||||
| Q2 2010 | 1.25 | Q4 2010 | 1.20 |
Forex Focus by IGIndex (16/6/10)
EUR/USD Performance Chart (16/06/10 19:00)
| Daily % Chg |
-0.07% |
3 months |
-9.44% |
|
| 1 week |
2.87% |
6 months |
-15.20% |
|
| 1 month |
-0.58% |
1 year |
-10.72% |
Details
| Prev close | 1.2332 | 52 week high | 1.5144 | ||
| Last trade | 1.2323 | 52 week low | 1.1877 | ||
| High | 1.2353 | Low | 1.2255 |
Bloomberg Median Forecasts
| Q1 2010 | 1.39 | Q3 2010 | 1.20 | ||||
| Q2 2010 | 1.25 | Q4 2010 | 1.20 |
Forex Focus by IGIndex (14/6/10)
GBP/USD Performance Chart (14/06/10 12:30)
| Daily % Chg | 1.32% | 3 months | -3.27% | |
| 1 week | 1.91% | 6 months | -9.61% | |
| 1 month | 0.90% | 1 year | -11.13% |
Details
| Prev close | 1.4552 | 52 week high | 1.7043 | ||
| Last trade | 1.4744 | 52 week low | 1.4231 | ||
| High | 1.4754 | Low | 1.4535 |
Forex Focus by IG Index (10/’6/10)
EUR/USD Performance Chart (10/06/10 19:00)
| Daily % Chg | 1.15% | 3 months | -12.00% | |
| 1 week | -0.38% | 6 months | -17.75% | |
| 1 month | -4.30% | 1 year | -13.85% |
Details
| Prev close | 1.1979 | 52 week high | 1.5144 | ||
| Last trade | 1.2117 | 52 week low | 1.1877 | ||
| High | 1.2134 | Low | 1.1957 |
Daily Forex Update: GBP/USD by Autochartist (9/6/10)
| /10 |
| Wednesday, 09 June 2010 12:36 | ||||||||||||||||||||||
GBP/USD 5 hours
Summary
Analysis Supporting Indicators Resistance Levels
Support Levels
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Forex Focus by IG Index (9/6/10)
GBP/USD Performance Chart (09/06/10 12:30)
| Daily % Chg | 0.12% | 3 months | -3.82% | |
| 1 week | -1.13% | 6 months | -10.92% | |
| 1 month | -2.43% | 1 year | -9.75% |
Details
| Prev close | 1.4468 | 52 week high | 1.7043 | ||
| Last trade | 1.4486 | 52 week low | 1.4231 | ||
| High | 1.4493 | Low | 1.4396 |
Bloomberg Median Forecasts
| Q1 2010 | 1.60 | Q3 2010 | 1.43 | ||||
| Q2 2010 | 1.47 | Q4 2010 | 1.44 |
Commentary
Sterling strengthened against the US dollar this morning, despite comments made by Fitch Ratings yesterday. The ratings agency warned ‘the scale of the UK’s fiscal challenge is formidable and warrants a faster pace of medium term deficit reduction’. [1] The comments are likely to limit sterling’s upside potential leading into the UK emergency budget on 22 June in my opinion. A slight widening in the trade deficit may also limit sterling’s upside today. The figures released from the ONS showed the UK trade deficit widening from £3.2 billion to £3.3 billion in April. A widening of the trade deficit means that the nation imported more goods than exported. From a supply and demand point of view, the increase in imports (relative to exports) suggests the UK had to effectively sell sterling to buy the foreign product, thereby increasing supply of sterling and reducing the value of the currency. David Choe, London
Forex Focus by IG Index (7/6/10)
EUR/USD Performance Chart (07/06/10 19:00)
| Daily % Chg | -0.31% | 3 months | -12.29% | |
| 1 week | -3.06% | 6 months | -19.54% | |
| 1 month | -5.47% | 1 year | -15.89% |
Details
| Prev close | 1.1967 | 52 week high | 1.5144 | ||
| Last trade | 1.1930 | 52 week low | 1.1877 | ||
| High | 1.1992 | Low | 1.1877 |
Bloomberg Median Forecasts
| Q1 2010 | 1.39 | Q3 2010 | 1.21 | ||||
| Q2 2010 | 1.25 | Q4 2010 | 1.20 |
Commentary
Since trading resumed this week, the EUR/USD has been moving in a relatively small range—after breaking below the psychologically important 1.2000 level on Friday. There was some positive economic news for the euro area today when it was reported that German Factory Orders grew by 2.8% in April. While this would typically be excellent news and favor strength in the continental currency, held in context with all of the other issues facing several members of the European Monetary Union, it was not enough to convince traders that the euro deserved to break back over the 1.2000 level. This pair is currently trading slightly over the opening level of the week, but has failed to spur much conviction in either direction. Heaviest resistance may come into play if this pair once again approaches 1.2000, however a break higher may not find further resistance until about 1.2100. Initial support may be present at today’s low of 1.1875 with further support matching the lows back in February of 2006 near 1.1825. Dan Cook, Chicago
Daily Forex Update: GBP/USD by Autochartist
| Thursday, 03 June 2010 11:34 |
| The GBP/USD (also known as the “cable”) is exhausting since prices could not press through resistance at 1.4750. The subsequent break lower though 1.4700 is further intraday confirmation of weakness in this pair, with prices on the daily chart pushing lower within an overall downtrend. The intraday bounce is setting up a rally on which the bears, by selling into the rally, have capitalized.
The 240-minute chart of the GBP/USD is showing confirmation of a last gasp higher, via the continuation breakout on the Rising Wedge pattern. While a continuation breakout within an uptrend would be considered a bullish move, this break saw a low three-bar Autochartist Initial Trend reading – this indicates very little trend accompanying the move, and the single bar Breakout reading reflects low buying momentum when prices pierced 1.4658 (R).
|
Forex Focus by IG Index (2/6/10)
GBP/USD Performance Chart (02/06/10 11:00)
| Daily % Chg | 0.04% | 3 months | -2.49% | |
| 1 week | 1.88% | 6 months | -11.86% | |
| 1 month | -3.88% | 1 year | -10.86% |
Details
| Prev close | 1.4651 | 52 week high | 1.7043 | ||
| Last trade | 1.4657 | 52 week low | 1.4231 | ||
| High | 1.4771 | Low | 1.4631 |
Bloomberg Median Forecasts
| Q1 2010 | 1.60 | Q3 2010 | 1.45 | ||||
| Q2 2010 | 1.47 | Q4 2010 | 1.44 |
Commentary
Sterling was mostly affected by news about the Prudential deal this morning. GPB/USD climbed toward the $1.477 level earlier today, after Prudential abandoned plans to buy AIG’s Asian division AIA following a failed attempt to renegotiate a lower price. The formal announcement prompted investors to unwind short sterling positions – a situation whereby a trader has to buy sterling to close their short position. This phenomenon was predominantly responsible for pushing sterling broadly higher this morning. Reuters News was informed that Prudential had put in place a series of currency hedges, selling sterling against the dollar, when the initial bid was announced in March and these positions would need to be unwound. Sterling may have also found support from figures showing an unexpected rise in the Purchasing Managers’ Index (PMI) for the domestic construction sector. The PMI increased to 58.5 in May, the highest since September 2007, from 58.2 the prior month. The latest figure beat the 58 median forecast shown in a Bloomberg survey of estimates. Anthony Grech, London
Forex Focus by IG Index (1/6/10)
EUR/USD Performance Chart (01/06/10 19:00)
| Daily % Chg | -0.33% | 3 months | -10.45% | |
| 1 week | -0.64% | 6 months | -18.67% | |
| 1 month | -7.73% | 1 year | -13.36% |
Details
| Prev close | 1.2273 | 52 week high | 1.5144 | ||
| Last trade | 1.2266 | 52 week low | 1.2111 | ||
| High | 1.2353 | Low | 1.2111 |
Bloomberg Median Forecasts
| Q1 2010 | 1.39 | Q3 2010 | 1.23 | ||||
| Q2 2010 | 1.25 | Q4 2010 | 1.21 |
Commentary
The EUR/USD pair has experienced another very volatile session to open up trading for the month of June. Following a rapid sell-off which took the euro to lows not seen since 2006, the common currency found its footing and rallied for more than 240 pips. The fundamentals were disregarded today as the euro began the rally, just moments after it was announced that the unemployment rate for the region moved up to 10.1%, and not even positive US Manufacturing data could slow the euro climb. Even so, the overall economic landscape has not changed into one that could be considered euro positive. After the stunning rally earlier which took this pair just above 1.2350, the dollar surged back recapturing almost 100 pips as traders found an attractive area to sell the euro. As of this writing, trading activity has seemed to slow considerably and this pair is almost unchanged from the opening levels of the week. As investors seek out balance in this pair, more volatility could be expected and traders will want to manage any positions very carefully. In the near term, this pair could face resistance in the zone between 1.2340-1.2360 and support put in at the low of the day near 1.2110. Dan Cook, Chicago
Forex Focus by IG Index (28/05/10)
EUR/USD Performance Chart (28/05/10 18:00)
| Daily % Chg | -0.04% | 3 months | -8.87% | |
| 1 week | -1.69% | 6 months | -17.55% | |
| 1 month | -6.54% | 1 year | -10.62% |
Details
| Prev close | 1.2362 | 52 week high | 1.5144 | ||
| Last trade | 1.2357 | 52 week low | 1.2144 | ||
| High | 1.2453 | Low | 1.2282 |
Bloomberg Median Forecasts
| Q1 2010 | 1.39 | Q3 2010 | 1.24 | ||||
| Q2 2010 | 1.25 | Q4 2010 | 1.22 |
Commentary
Early in the US trading day the euro was on course to continue climbing higher. However, as traders start to close positions heading into the long US holiday weekend, some softness has been seen in the continental currency. Over the last few days the euro was able to gain back 300 pips as several government statements—and a simple lack of new bad news—helped drive optimism that the eurozone crisis may not be as severe as previously projected. While this optimism helped propel the euro higher versus the dollar in previous sessions, it appears from the price action today that while optimism is fine while the market is trading, few speculators are willing to believe strongly enough to risk holding long euro positions into the weekend. Not even US fundamentals that would typically herald a weak dollar have been able to keep the uptrend going and the euro has fallen more than 100 pips from its intraday high reached earlier. Uncertainty still looms large on the horizon and while selling pressure on the EUR has abated a bit in recent days, until there is some bite to back up the political bark, it is hard to envision a broad community of traders that are willing to hop on the euro bandwagon. Dan Cook, Chicago
Forex Focus (27/05) IG Index
GBP/USD Performance Chart (27/05/10 12:30)
| Daily % Chg | 1.18% | 3 months | -4.47% | |
| 1 week | 1.33% | 6 months | -11.95% | |
| 1 month | -4.64% | 1 year | -8.60% |
Details
| Prev close | 1.4387 | 52 week high | 1.7043 | ||
| Last trade | 1.4557 | 52 week low | 1.4231 | ||
| High | 1.4586 | Low | 1.4366 |
Bloomberg Median Forecasts
| Q1 2010 | 1.60 | Q3 2010 | 1.46 | ||||
| Q2 2010 | 1.47 | Q4 2010 | 1.45 |
Anyoption Broker -Simple way to Trade Forex Options
Anyoption is recognized as the top binary options broker today. Through binary options trading, investors can now enter fixed return contracts allow greater flexibility for traders to test out their strategies through a number of assets which they can trade including stocks, currency, commodities and indices.
With a wide range of contracts to choose from, Anyoption allows traders to diversify their portfolio thereby decreasing their risk.
Forex Focus- Sponsored by IG Index
EUR/USD Performance Chart (19/03/10 16:00)
| Daily % Chg |
-0.60% |
3 months |
-5.25% |
|
| 1 week |
-1.76% |
6 months |
-8.06% |
|
| 1 month |
-0.60% |
1 year |
0.37% |
Details
| Prev close | 1.3608 | 52 week high | 1.5144 | ||
| Last trade | 1.3526 | 52 week low | 1.2886 | ||
| High | 1.3627 | Low | 1.3513 |
Bloomberg Median Forecasts
| Q1 2010 | 1.39 | Q3 2010 | 1.38 | ||||
| Q2 2010 | 1.37 | Q4 2010 | 1.38 |
EUR/USD Performance Chart
EUR/USD Performance Chart (03/03/10 16:00)
| Daily % Chg | 0.52% | 3 months | -9.08% | |
| 1 week | 1.09% | 6 months | -4.05% | |
| 1 month | -1.76% | 1 year | 8.81% |
Forex Focus- 17 Feb by IG Index
Commentary
Sterling fell against the US dollar this morning following an unexpected increase in the number of Britons claiming jobless benefits in January. According to the ONS, UK claims for unemployment benefits rose by 23,500 in January, confounding analysts who were anticipating a drop of 10,000.
Forex Daily Analysis- by IG Index 10/02/10
| Daily % Chg | -0.84% | 3 months | -7.87% | |
| 1 week | -1.53% | 6 months | -3.57% | |
| 1 month | -5.73% | 1 year | 5.21% |
Small type investors ? Forex Options would be the right choice You
Forex options are a very common means of investing and certainly quite popular with many. Options generally allow a trader to take much less risk then on an ordinary Forx trade.Forex options as a trading means is considered one of the best for the simple reason that it provides the gateway for the small investors who do not have major money back up which is the case why you see a lot of people getting involved in such a trading process.
| Novl | 0.00 | ||
| Microsoft Corpora | 30.24 | ||
| Intel Corporation | 26.74 | ||
| Pfizer, Inc. Comm | 21.20 | ||
| Google Inc. | 596.33 | ||
| Apple Inc. | 459.68 | ||
| Bp P.l.c. Common | 46.57 | ||
| General Electric | 19.02 | ||
| Exxon Mobil Corpo | 84.92 | ||
| Ebay Inc. | 32.95 | ||