How To Trade Binary Options Successfully in 2016? Binary options trading is a simplified form of trading. In order to understand the concept of binary options trading as well as trading successfully, you need a clear understanding of the three key elements are as follows:
1 latent assets – the first step for any trading is the choice of the assets that you want to trade in and Interactive Option offers more than 100 out of 4 different asset classes namely equities and commodities, indices and currency pairs or Forex. If you do not you are buying or selling these assets actually, but simply put Osarhzh prediction about the direction of the movement of assets, it will be referred to these assets as “assets latent ‘in binary options trading.
2. Trading and contract expiration – Once you have selected a basic trading assets, must be executed option contract. Interactive Option provides diversity and choice for traders. You can specify the end of your deals from short periods of times as much as 30 seconds, 15 minutes, one hour, one month, and up to one year. Valmtdaol contract can buy up to five minutes before the end of the trading period and this allows you to benefit from the direction of asset prices.
3 prediction – now we come to the part where you will have to predict, if you think that the assets that you have chosen the prices will increase during the period of expiration, and will determine the Call option, but if you think that the asset price will drop during the period of expiration, will choose Put option. If your prediction is true, and you will end trading ‘in the money’ and your earnings will range generally between 75% to 90%. This is subject to current assets as well as the specified expiration time
Technical analysis is a way to analyze the market and the movement of the market by looking at the market data such as current assets size, tables price of the asset, as well as the open interest. By analyzing this data, we will be able to predict the movement of asset prices in the future more accurately
Technical analysis is used primarily for short-term trends
Market trends is a form of technical analysis and the focus here is on the historical data for asset prices, through data analysis of historical moving average, the trend forecasting account.
Let’s look at an example. If you want to determine whether gold displays a certain direction, such as the top or bottom, you need to control the moving average for two days and SMA for five days. If the moving average of the two-day express either over or under the direction of the move for five days, you can determine that the trend exists. For this type of analysis, and MACD (convergence and divergence moving average) is used as the indicator.
It means clouds suggest that the price of a latent assets will fall back towards average. This medium can be the historical average of the price of the asset or the historical yield. It can even be a link, such as the average growth in the economy or the average yield of the industry.
Follow the way the momentum is very common in technical analysis. It is based on MACD (convergence and divergence moving average) indicator that the relationship between two moving averages of prices appears. Is the MACD account by subtracting the 26-day exponential moving average (EMA) from the 12-day exponential moving average. Nine days (EMA) of the MACD, called the “signal line”, which is drawn on top of MACD. It works signal line operator to buy and sell signals. Using MACD is very complex but it can help to determine the direction of the momentum of the asset. Once calculated, you can use this information to track the daily changes in short-term and long-term rates. If the average short-term larger than average long-term, should increase the momentum. If what has been the opposite account the declining momentum. This type of information can lead to some huge profits so you take enough time to learn how to use the MACD.
Pattern of return
Many analysts use the pattern to determine the yield of balance or sector or the market movement. Some may find that it is very difficult to find the movement patterns of asset prices, but it succeeded, the payments will be very useful and valuable.
And one of the methods used to determine the price movements, is the use of stochastic oscillator. This type of technical momentum indicator compares the closing price of the underlying asset for a set price over a certain period of time. This indicator follows the price of the underlying momentum because he follows al Qaeda’s own momentum change direction before pricing. If you want to follow price trends and identify business opportunities and potential lucrative, this index is very important.
Fundamental analysis differs from the technical analysis because it is based on the measurement of the overall economy. This type of analysis focuses on the real value of the asset and the sector and the market, rather than only on hard data as well as the economic prosperity of the financial entity. In fundamental analysis, it is taken into account other factors such as the economic climate, corporate news, and political developments and more the focus is on how these events influence the price of an asset in the future.
Quantity is the basics of numeric values that are used to predict the price calculation. These figures provide accurate analysis with a base of evidence to predict. This increases the accuracy of the analysis accuracy, which in turn can enhance your trading success and effectiveness
Qualitative data plays an important role very fundamental analysis. And it expressed all the information specific to the asset or market sector. And it is measured as the real value or intrinsic value to predict binary options trading prices. This is the reason that fundamental analysis is often associated with long-term investments. By identifying the real value of something, you will have control of your investment. And you will be able to determine whether one asset is undervalued or that their value exaggerated. Once you have this information, you will have the opportunity to determine the direction of asset prices. For example, if you select that one asset is trading at a price of $ 50 but the real has the value is $ 70, you may have decided that the original folk undervalued. This means that although the economy may not adjusts itself to display the value of the assets properly, it is possible in the future, which means that it is likely to rise to the correct price of the underlying value
Through a combination of quantitative and qualitative analysis of both fundamental analysis becomes a very powerful tool in predicting market movements. There are a lot of factors that can help determine the price of breaking news, natural disasters, and the statements of income, company news and much more. All of these factors play an important role in predicting price movements in the future of one of the assets.