Review of the top ten forex binary options trading combinations, how it works, what to look for in the markets, and what’s the best strategy to use.
If you’re looking to trade in binary options, you should look at learning how Binary Options work and what can be done with it.
Simply put, FOREX is a just trading different currencies for their value like any other asset. As you probably know, one country’s currency has a value when compared to another country’s currency. The difference in the value between the two can be used for trading purposes to make a profit, whether when buying or selling.
There are many different kinds of international currencies to trade in. Of course, every currency has an international trading value, but the ones which are most known and relied upon are the ones you have always heard about: US Dollars (USD), The British Pound (GBP), The Swiss Frank (CHF), The Euro (EUR), The Japanese Yen (JPY), etc… These represent the biggest trade values and most traded currencies in the world.
Because of their economic power, these currencies are usually a safe investment when doing currency trades on the market.
FOREX trades occur by trading the value between two currencies. For example: USD/EUR would trade the difference between the two in the same way that one would trade the value of any other asset.
Therefore, if the Dollar is gaining ground on the Euro, you may want to look in into trading USD/EUR and see how the market is playing those two against each other. Just like any other asset, you trade them in binary options with the same methods: Touch, Range, High/Low. These are the same kind of trading methods used in trading any other binary options asset, so you should be familiar with them.
Start by watching the economic news. The economic and financial news will always talk about how the Dollar is doing against other currencies – whether it is gaining ground or not.
Usually, it talks about how the Dollar is doing against the Euro, or the British Pound, or a few others. Make sure you listen to this information and absorb and learn what the reasons are why it should be going up or down.
Then, get online and start looking at your binary options for trading the Dollar against those currencies mentioned. Check out the live data graph because you’ll want to study that as it’s going on with the news in the background so that you can notice when the graph is dipping or rising – what kind of news is making it react in each different way?
When you’ve got the hang of it, you’ll want to start the actual trading. Suggestions on how to start would be the following top ten:
USD/EUR: Everyone knows that the Euro is the main competitor of the Dollar in the world market today. Some assets have started to switch from trading in dollars to euros, and there’s a good reason for that: The Euro, even with the Eurozone crisis, is a valuable currency. Make this your number one trade pick.
USD/GBP: There’s another traditionally influential currency in the world, and that’s the British Pound. And there’s a good reason for it: many of the most influential banks and trading houses in the world are situated in London.
They’re British and go back centuries. In fact, one can say that they invented the modern capitalist market, so it’s a sure bet that their trading system is going to produce a really stable and important currency. Historically, the Pound has been one of the highest values in currency trading since hundreds of years. In some ways, the Euro competes more against the Pound than the Dollar.
USD/JPY: There are two nations in the east which compete against the Dollar the most: China and Japan. And as everyone knows, the Japanese market is still one of the most competitive markets for high tech in the entire world.
While China relies on manufacturing, Japan relies on high tech innovation with ceramics and electronics. These are important fields in which to trade and represent the entire full force of trading in USD/JPY in FOREX. Make sure you understand this currency trade as it’s one of the most important in the world.
USD/CHF: There’s one nation in the world known mostly for its banks, and that is Switzerland. And there’s a reason why the Swiss Franc is so powerful: because they have some of the most reliable banks in the world.
Trading in USD/CHF, you’ll want to focus on international banking news. And that doesn’t just mean Swiss banking news. It means any sort of large transaction from either private or public owned companies – many of these will have their transactions pass through the Swiss banking system, which is sure to profit from each trade.
There are many other kinds of combinations to look for in trading in FOREX binary options. You’ll want to check out such currency trades as EUR/GBP to see if you can make money from any power struggle between these two vital and European currencies.
And don’t forget to also learn about JPY/EUR – especially when news about the European space program comes out, or even news about nuclear research.
Europe relies on Japanese high tech companies for many of their extremely high-end technology enterprises, often partnering with such names as Mitsubishi and Honda in robotics and precision instrumentation research.
Take advantage of these announcements in the news to see what kind of opportunities these can herald for you in the currencies markets.
Another one to look for is GBP/CHF: the struggle between the two for worldwide banking dominance is coming to a head with the crisis in the Eurozone. Because of this, those two banking systems are coming to a head and you can make fast money on high payout investments with these.
Whichever you choose, remember too that different combinations can be used to represent entirely different shifting markets underlying the live graphs. There are many reasons why currencies rise and fall every minute, but be sure you understand the big root causes before you start looking for the more intricately minute reasons.