Using the Option Builder to Trade Economic Releases
The binary option builder allows a trader to pick a specific time when a market will be higher or lower than the current price. The key to this feature is that it is customized, which allows a trader to make sure the time horizon is after a release of a key economic data point.
Economic releases come out nearly every trading day, and each will have an effect on the way a security moves. For example, the Department of Energy releases inventory data every Wednesday at 1430 GMT. There is always crude oil price volatility surrounding this release, using a customized binary option trade, could make the difference in capturing movements surrounding the release.
Generally new unexpected information creates market movements, and binary options are geared toward finding periods when market volatility increases, giving an investor a better chance to earn returns if there assumption is correct.
A customized binary option starts with the asset that will likely move. A trader should attempt to match the security that will be traded with a release that affects that security. For example, the S&P 500 index is more likely to experience volatility after a US release like the US employment number, compared to the Japanese Nikkei.
After the security is chosen a trader needs to specify the time. Since most economic releases come out one time, this process targets the minute after the economic release. Next a trader chooses if the trade will be in the money or out of the money, and finally the amount that will be risked on the trade.
The option builder can allow a trader to generate successful trades using its customized features that help an investor capture the volatility associated with economic releases. To find out more about the best ways to utilize Binary Options Tools and profit, get a free trading education, and access to the industry experts and leaders in Binary Options education – open an account today with Magnum Options – the no1 trusted broker in binary options education. Get in the knowledge – and in the money today!
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