Can you trade on the different currencies in the world? If so, do you buy one currency and sell another currency? Can you trade on the foreign exchange markets utilizing the binary options instrument? These are some of the questions you might be asking if you are new to binary options.
What is currency trading?
Before we look at how you can trade on the different foreign currencies, let make sure we understand what currency trading is. In summary, currency trading is the act of buying and selling the different currencies of the world. Currencies are traded on the foreign exchange (Forex) markets. In order to buy and sell currencies successfully, a currency trader needs to be well versed in the art and science of trading on the Forex markets as he/she has to watch out for speculative trends involved in the currency rates. Such as those trends emerging from statistical reports (E.g., GDP/GNP; Economic growth figures etc.), as well as actions by central banks which affect exchange rates. These changes can occur in minutes or seconds, increasing the risk factor when trading in currencies. In order to mitigate the risk of losing large investments, successful traders implement risk management strategies.
What is binary options Currency Trading?
Before we look at whether we can use the binary options trading instrument as a vehicle to trade on the forex markets, let’s investigate what binary options are and what binary options trading is.
Binary options, as their name suggests, are trading options with a binary outcome. It is important to note that, as a binary options trader, you do not buy and sell the underlying asset, you trade on the possibility of a change in the rate and that the price will move up or down within a specified timeframe.
In order to determine which way the price will move, it’s vitally important to research the price trends of the underlying asset you have chosen.
The online space is full of data, statistics about anything and everything. I’m sure you would be able to find out random statistics such as how many people suffer from stress-related illnesses, or how many people take a holiday abroad every year! Or perhaps you have never searched online for statistical information of any kind! What does this have to do with binary options? Not much! However, it serves to illustrate the challenge of finding the correct statistical data to help you comprehend whether the price of an underlying asset is going to move up or down within a given timeframe.
Fortunately, there are reputable, registered, world-class brokers who employ some of the best analytical minds in the financial industry. They are able to make sense of the financial markets, and they draw up graphs and charts for you to look at when doing your research. Not only do they do a lot of the ground work for you, but, as part of the Stern customer support team, they are available to you 24/7 to answer any questions you might have.
Can you trade on the Forex markets using binary options trading?
Yes, you can! You trade whether the price of one currency will increase or decrease against a second currency. This is known as trading on currency pairs. They are fixed pairs, with some of the most popular pairs being USD-CAD, USD-GBP, EUR-USD, and USD-JPY. Well established and reputable companies such as Stern Options are able to offer all of these currency pairs and more besides.
Not only do Stern Options offer a bigger variety of currency pairs to trade on, they provide the service to trade on them with world class online trading platform with state of the art security and a guaranteed uptime of 100%. So you will never miss a moment of opportunity to make profits.
Stern Options clients can also learn how to make those profits, thanks to their online, free-to-use, education centre. The education centre includes free eBooks, didactic video tutorials, binary options asset index, expiry rates, FAQs, and glossary. The total sum of the material in the education centre gives you comprehensive theory and practice designed to help you trade successfully.
Stern Options offer a world-class service to binary options traders who are interested in currency trading. This is one of the most exciting markets to trade in, with large profit margins. My advice to anyone consider using binary options trading to trade on the price movement of currency pairs, is that you firstly need to partner with a world-class broker such as Stern, and secondly, you need to study Stern’s educational material in order to ensure that you have a proper understanding of the art and science of binary options currency trading..