Currency Trading News

The abundance of choice among various kinds of options can get a trader torn up. How can one decide which trading instrument is right for them? No worries: we’ve prepared a comprehensive guide that will help you make the right choice. Back to basics Let’s start from the beginning by defining what an option in its general sense is: An  option  is a contract which gives the holder the right (but not the obligation) to buy or sell a unit of an underlying asset at a specified price on a specified date. An option with the right to buy at a specific price is referred to as a Call, while an option to sell is known as a Put. The basic goal, however, is the same for both types: to profit from the difference between the buying and the selling price. Options can further be divided into various styles (also known as ‘families’), with the vast majority falling under either  European  or  American  style. European vs American options These two option types

The main economic data on Friday 9 th  June 2017 was the Canadian Unemployment Rate and several UK related economic readings which showed weakness for the British economy. Canadian Dollar The Unemployment Rate for May 2017 moved up to 6.6% from previous reading of 6.5%, but the change in Full Time Employment was strong creating 77,000 new jobs, while the Part Time change was poor. The Participation Rate also moved higher to 65.8% from the previous reading of 65.6%. Generally positive economic readings, especially the creating of new full time jobs, which show strength for the Canadian economy. As oil prices fell the Canadian Dollar appreciated against the US Dollar and USD/CAD moved lower from 1.3541 to 1.3420. Japanese Yen A better than expected Tertiary Industry Index at 1.2% vs the estimate of 0.5% for the month of April 2017 showed increased services domestic activity, which means increased consumer demand for various services to cover

Reinvestment of profit as a money management approach. The same as in life, specific skills and discipline are required in  binary options trading , because traders are at risk or partial or complete loss of capital when they endeavor to earn money in financial markets. Apart from Standard Money Management Approach wherein a fixed percentage of the current balance is reinvested into a new option, there is also another approach to money management called  Reinvestment of Profit. The idea behind this method is to invest a small amount of the current balance into purchasing a CALL or PUT option, and in case of a successful prediction the trader reinvests it all into the purchase of a new option. Experienced traders consider such a trading approach as  cyclical trading , rather than a one-time investment. Let’s assume that a trader has a specific amount of money on his trading account and that he is ready to invest $10 into the purchase of a CALL or PUT op

Foreign exchange market (Forex)  is the biggest challenge a market can offer you. With its average traded value of approximately $383 billion per day, Forex market surpasses by far any other market out there, including the stock market. There are many opportunities Forex puts at your disposal, but there is also a great deal of responsibility whenever you play this game. Assets are volatile 24 hours a day, so certainty has no place in this world. However, there are seven main  currency risks  that you can avoid. Let’s see the stages of your Forex activity requires more caution from your side. 1. Interest Rate Risks Your main focus in dealing with the  Forex risks  should be the interest rate. The interest rate is influenced by the 8 global central banks, which base their decisions on external economic indicators (The Consumer Price Index, Consumer Spending, Employment Activity, Subprime Market or Real Estate Sales). Follow  Economic Calendar . The hig

Hedging is a way to reduce your trading risks . Hedging a binary option involves buying both a  Put  and a  Call  on the same asset, with strike prices that allow both to be  in the money  at the same time. That is, the strike price of the binary  Call  option is lower than the strike price of the binary  Put  option. Consider what this means. If the actual price is between the two strike prices at expiration, both the  Put  and the  Call  options would be in the money, and you would  make a healthy gain  over your investment into the deals. This is the  best scenario , and all it requires is for the price to be in a range, the size of which is up to you. Admittedly, the larger the range, the more the binary options will have cost you, but that is part of your assessment on making the trade. In this situation when using the   hedging strategy  you would have to buy an option  in point A  that the rate will  rise (Call) and buy an option  in point B  that t