Binary options are a highly speculative tool! They born only to be able to speculate and, therefore, not all of the underlying tools are suitable for this purpose.
If you think about a highly speculative market which one comes to your mind? Certainly not the equity ones that, although subject to speculation, are used purely for investment in the medium to long term, the speculative markets for excellence are the currency ones, so it would be better to focus our attention there.
The currency pairs are not all the same, there are major pairs and secondary pairs, the main ones are:
- EUR / USD (Euro / U.S. Dollar)
- USD / JPY (U.S. Dollar / Japanese Yen)
- GBP / USD (British Pound / U.S. Dollar)
- USD / CHF (U.S. Dollar / Swiss Franc)
The "secondary" pairs very related to raw materials are:
- AUD / USD (Australian Dollar / U.S. Dollar) associated with golden products
- USD / CAD (U.S. Dollar / U.S. Dollar) associated with petroleum products
- NZD / USD (New Zealander Dollar / U.S. Dollar) associated with golden products
You should try to avoid investing in these couples because those are less liquid and less volatile, also the spread (difference between purchase price and selling price) is very high.
THE BEST TIMES TO INVEST
As best times, we intend the ones connected to forex market, that, as everybody knows, is open 24h/24h, it closes on Friday at 10 pm and then it opens on Sunday at 11 pm. Although it is always open, the most trade takes place in particular times, these must be used for investment in binary options.
The best times coincide with the opening of the main squares in the world, especially the EU and the U.S. that are open at the same time from 2 pm to 5 pm, at this time occur the most of forex market trades and nearly all the trade of the pair EUR / USD. The other hours are:
- London – New York: from 2pm to 5pm
- Sydney – Tokyo from 11pm to 8am
- London – Tokyo: from 9am to 10am
To avoid too many restrictions, we can say that the times on which we should invest in binary options ranging from 9am until 7pm, out of this time, the general interest to the market falls, except in a few cases, however, to be considered rare, and the volatility decreases with the result that lowers the chance to profit by investing in binary options.
WARNING: among the many existing currency pairs EUR / USD is the most liquid and more volatile, ie, it has a greater number of oscillations than the others, so it is much more profitable to invest in binary options with underlying the Eur / Usd however, the most important thing is that couples subject to investment do not belong to the second category, in this case we would have little chance of winning.
Always remember that investing in binary options doesn't mean risking all of the capital in just one operation, but divide it in order to have more opportunities to buy other options and, therefore, getting more odds in your favor.
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