Oil Trading the Binary Market
Oil is the most widely traded commodity in the world today, and as such, there is a lot of opportunity to make money off of its price. However, this can be difficult to do for smaller traders since oil is expensive, and a large amount of money is needed in the traditional markets in order to make trading worthwhile. Add this to the fact that it can also take quite a bit of time to see a profit. Oil is traded as a futures contract, and these typically take around a year before they will come to fruition. For the short term trader, then, oil is extremely difficult to trade seriously.
But with binary options, trading oil has become a lot easier. Both of the main problems created with the traditional commodities futures contract set up are eliminated when you trade oil binary options. Binary options brokers make it possible to not only trade profitably with small amounts of cash, they also let you realize profits very quickly. You don’t have to have a year of downtime before your profits come in. And you certainly don’t need to worry about being profitable enough to avoid the contract fees and transaction costs that you would typically incur. Binaries allow you to trade small amounts with large rates of return–sometimes around 80 percent. So instead of purchasing a contract for $100,000 and hoping to make a couple thousand a year from now, you can trade $100 per transaction or less, and make a lot more than that in the same amount of time.
This is possible because you don’t need a huge amount of movement to be profitable. A single penny in your favor gives you the full return. So if you buy a 30 minute binary option predicting the price will go up for $100 at an 80 percent rate of return, if you’re right, 30 minutes later you will have $80 deposited back into your account. Even just one trade per day like this and you are making $24,000 per year, assuming you only trade 300 days per year. The plus side is that you don’t even need to trade every day if you don’t wish to. You can risk more or less if you’d like. That’s a much better deal than risking $100,000 (plus contract and broker fees) with the hope of squeaking out just a small profit.
Oil prices move on a daily basis because it is used everywhere. Sometimes it is very easy to predict over the short term–but it is seldom easy to predict far into the future. Oil futures were created in order to help protect the big businesses that rely on oil, but that doesn’t mean that you can’t use this commodity to create an income for yourself. The big issue is that there are so many barriers to the marketplace. Binaries solve this problem and let the “everyman” enjoy the profits of fluctuating prices. And because you can trade short term binaries, you don’t have to risk a lot at once over a year. Many small trades, focused upon when you have the most knowledge and the best idea of where prices are headed, will end up giving you a bigger amount of cash in your pocket than trading a huge amount all at once. You have information on your side this way, the risk is broken up into smaller segments, and there are no extra costs that you will have to pay just to get to your money. Binary brokers make money when you are incorrect in your predictions, so reducing the chances of being wrong by timing your trades with precision will get you a far bigger profit over time than trading nonstop.
The secret to being successful in oil binary options is to study the market and time your trades right. This will take some time to perfect, and the more practice you get doing this correctly, the better off you will be in the end.