Strategy for Trading Gold Binary Options

Strategy for Trading Gold Binary Options

Submitted by adil on Tue, 11/18/2014 - 08:12

One very important asset which is used for trading in Binary options is gold. It is observed that most of the gold retail traders are taking a drift towards Binary trading, as the cost of gold is increasing day by day. The initial capital which is required for retail gold trading is more than $10,000, whereas in Binary options the opportunity is provided to the traders to trade at a much lower value. This gives most of the new traders an incentive to trade in the Binary options as the limit for trading can be from $20, and especially for gold trade the time frame ranges from 30 seconds to 30 days. This is a huge incentive for gold trading in binary options. Similarly it cannot be denied, that gold trading is not recommended for beginners, as it requires a lot of experience and initial capital. A number of trading strategies and trading signs need to be kept into consideration.

Trading Signs
In binary trading industry the idea of ‘trading signs’ is new. The experienced gold traders tend to be more aware of these signs, as they have developed a strong hold in the market with their expertise and knowledge. A number of online resources are providing trading signs, which do market research beforehand and recommend the best trading strategy for your particular trade. Therefore new traders must be very vigilant in selecting the right trading strategy and choose the best trading sign.

Types of Trading Strategies:

Touch/No Touch: In this strategy the trader tries to determine the best price level by predicting the strike price, which is referred as ‘Touch’ or the price which is not be selected, referred as ‘No Touch’. The key in this strategy is to figure out or predict the fluctuation in the price of gold before a certain time period.
 

In/Out: The gold price can be used to determine the range of price, which will be formed by an upper or lower trend line. The price can either stay within the range (IN) or drift away to the other side (OUT), this selection is made by the gold trader.
 

High/Low: In this type of strategy the gold trader tries to determine if the price of gold will go high or low than the current price. This needs to be determined before the expiration date.
 

Indicator for Gold Trading: A number of indicators can be used for short term analysis,  but for gold trading in binary options you need to look for an indicator that can reassure a positive upward trend momentum. For tis MACD (moving average convergence/divergence) indicator is the best solution. This indicator gives you an in-depth analysis with the help of charts and graphs.

Best Strategy for trading gold
Gold trading requires a lot of initial investment and should not be practiced till you have attained experience. First of all you need to save up and never invest in trades where the risk of losing money is high. Always keep a check on your trading activities and try to look for strategies to mitigate the risks. Gold trading can be very profitable, but for that you need to understand the trading signs and strategies.