Binary Options Trading On News & Events

One of the most popular ways of trading binary options is trading on news and current events, and anyone who has had some exposure to trading the financial markets will be aware that news can impact on anything from company stock prices to currencies.
Company stock prices and stock markets, for example, can generally be influenced by geopolitical events including war, civil unrest and terrorism. The social and economic uncertainty generated by the 9/11 terrorist attacks, for example, caused many investors in the United States to trade less and focus on stocks and bonds with a lower level of risk. The mere hint of political conflict can also send the price of crude oil soaring, particularly if the region is a major oil exporter.As oil and stocks have a negative correlation, rising oil prices due to political unrest tend to also signal a falling stock price. Government elections can impact on the markets too, and as we shall see later, these can have profound effects on the markets.

To trade on news and events, traders have to be aware which economic releases are due. It is important to know which piece of data is important and how news can impact on a specific event. Generally speaking, the most important economic releases for any country are interest rates, inflation, unemployment, retail sales and industrial production.
Trading binary options on news and events is actually a little more complicated than it sounds and is not ideally recommended for newcomers. For this reason, it isbest approached by medium to high-skilled traders. However, new binary options traders keen to make a profit in this way should not be deterred as practicing some of the other binary options strategies first such as candlestick patterns andfollowing a set of established guidelines will act as a stepping stone to success.
One of the most popular ways to trade binary options is trading on news involving currencies. Currencies are particularly prone to short-term movements brought on by the release of economic news from the U.S. and the rest of the world. To trade news successfully, traders need to keep key considerations in mind like knowing which releases are expected and when, as well as which ones are most important given the current economic or political conditions.Many Banc De Binarytraders will, for example, be familiar with trading on the U.S. Non-Farm Payroll report which is released on every third Friday of the month. This report reveals how many new jobs were created or lost in the U.S. in the previous month. A favourable reportusually positively impacts on the dollar while a poor jobs report will negatively impact on the dollar.
To illustrate with a further example, elections can as we noted earlier, impact on a country’s currency and are acknowledged by traders as causing potential political instability or uncertainty. This usually equates to greater volatility in the value of a country’s currency. Typically, this instability will override any positive predicted outcomes from a new government in the short-term and any related currencies will probably experience losses. In February, 2015, in the aftermath of the recent Greek elections where anti-austerity party Syriza took to the helm, the current state of affairscontinues to dominate the press and impact on the currency markets. With Greece exiting the Eurozone seemingly more than just a possibility,unless a new debt agreement can be arrived at with its European counterparts, this has caused a level of nervousness inthe financial markets. A trader can, therefore choose tocapitaliseon this current geopolitical situation by proceeding to the Banc De Binary platform, choosing the relevant asset to trade – in this example, the EUR/USD pair, setting the expiry time and deciding whether within those parameters, the currency pair will go up or down. If the trader makes the correct decision, the trade will end ‘in-the-money’ and he will make a profit.
Hence, current affairs can have a profound effect on the markets and it’s easy to see why traders like to take advantage of this volatility. While it is not so easy to plan for the unexpected in the markets at times like this, informed traders will be quick to react to global events. Researching relevant information and following the trends in times of political conflict or uncertainty allows traders to make quick, informed decisions regarding their trading activities in order to maximise their profits.Above all, Banc De Binary also encourages traders to practice binary options strategies which will greatly increase a trader’s overall winning rate.