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Binary Options Fundamentals Analysis
Impact of the Fundamentals in Binary Options trades
Analysis of fundamentals in Binary Options is a process of linking real-world events to price movements.
This process in Binary Options can include anything identify as a reason behind why the price is moving in a particular direction.
For example, if the price of a currency is falling, just fundamentals analysis would try to determine why was happening. It also uses fundamental analysis to determine which way a currency might move.
They can use it for both short-term and long-term trading.
Professionals always get analysis of fundamentals in Binary Options
It’s important to recognize that the overwhelming majority of professional traders and investors use fundamental analysis as the core of their money making strategy.
If you look inside professional trading floors on the financial news channels, you will see the traders staring at charts only.
They use almost all the big news terminals such as Bloomberg, Reuters, Dow Jones, MNI and more.
Designed these terminals to get news and information to those traders fast.
They also cost thousands of dollars per month for each individual license.
Usually price charts and technical indicators are free.
There are some smaller funds or managers use technical analysis—but you will struggle to find credible examples of more than a handful.
So almost all professional fund managers trade with fundamentals analysis.
Binary news trading strategies involve taking binary positions around the release of important news events or economic data.
Long Binary Options are ideal for news trading because of their limited downside risk you can know in advance.
This can help traders avoid costly slippage on stop-loss orders that can occur in volatile post-release markets.
Most binary news trading strategies involve predicting how the underlying market will react to a news event.
Popular economic releases to trade binaries around include: employment, inflation, growth and retail sales data, and central bank interest rate decisions.
For example, if a binary news trader believe the result of an economic data release will surprise the market, they can purchase an Out Boundary binary covering the event that will payout if the market moves.
If they think the news will be rough, they can purchase an In Boundary binary to take the view that the market will remain stable.
If a news trader believe the outcome will be better for the underlying market, then they could buy an Up Binary., they could purchase a Down Binary if they think the final result will disappoint the market.
Have you ever realized how real events move the markets?
For example, when something bad happens—such as an act of terrorism or natural disaster—the relevant country’s financial markets often fall.
For example, when the UK voted for ‘Brexit’ in 2016 the British Pound dropped around 20% in value against the US Dollar.
This was a direct reaction by the market in response to the result.
Trust me, this principle is sound.
As events may be good or may be bad unfold, they feed into the indicator “sentiment” of market participants, which then results in price movements.
Good events support currency price while bad events weaken a currency.
You can get a sense of this by watching the mainstream news channels. They will cover market moves and explain the reasons behind them.
I am Hernan Batista Z. I am 60 years old, merried with 4 children, Human Resourced Bachellor degree with 40 years experience. Right now retired and working in the Bursatil Market with Binary Option, Forex and Crypto Currencies. View all posts by Hernan Batista