Binary Commodity Options
Commodities, alongside indices, stocks and financial currency pairs are the basic options you`ve got, when it comes to binary trading. It is a well-known fact, though, that commodities have come as last alternatives for trading, but they have not caused any difficulties as to learning them. This is because trading commodity binaries is quite similar to trading stock binaries. Indeed, both things are very similar, so this is why 80% of stock binary lovers also trade commodity binaries. If you are not yet familiar with this financial activity, it is high time for you to learn more about it. See our simple and easy to be understood binary commodity options trading guide.
How to trade binary commodity options?
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Commodities are also know as futures. Both mean the same and they are very often mixed with stocks. Though, let`s pay attention specifically at commodity binary trading at first. When you trade futures you make a contract as to the future commodities or the amount of the next deliveries of goods. Your prognosis should also consist the exact date of the delivery, the number of packs (for instance, because the commodities might be measures in liters), as well as the place of the delivery. Each particular commodity is bought and sold in standardized contractual units, which makes them completely interchangeable. The modern futures markets have been traded since rice futures traded in the eighteenth century in Osaka, Japan. However, historians have found some evidence of primitive futures contracts for olive oil, spices and other goods were used by shipping merchants in East countries. Today, when trading commodity binaries, you must consider dozens of facts that you can find in financial magazines. Unlike stock trading, in commodity trading, the information you need to look for is usually in more specific news and websites.
All the benefits of trading commodity binaries
Why trading binaries with commodities? Or to be more specific – why it`s better than trading stock binary options? This is what you are going to find out right away. See all the benefits of trading commodity binaries now:
- The requirement for the margin is much lower in this sphere and it is a very common act of a trader to switch to commodities from stocks just because of this important fact. Plus – options can be sold with out-of-pocket margin requirements for as little as one to one-and-a-half times premium collected.
- The profits are always more attractive, when you trade future binaries than any other instrument. Indeed, financial currency pairs are the most difficult ones, but they are not the most profitable by all means.
- The liquidity is another advantage you must consider, too. If most commodities contracts have bigger open interest than others, most of the main deals, such as sugar, grains, gold, natural gas and crude oil, have ordinary volume and open interest, providing many thousand open deals per strike value.
- Lower risk is the last, but not least pro we have considered to name you, because this is the binary type that is indeed the least possible to bring you no luck. According to the statistics, the biggest profits come from binary options with commodities.
What we can definitely say about binary commodities – except for the similarity to stocks and the easy tutorials you can use to learn them – is that they lots of fun. Developing analytic skills with them, you can eventually become a real financial expert.
See our list of top binary brokers to start your options trading successful career!