Commodities Binary Options

Using the increasingly popular method of Binary Options in today’s world of modern stockholding, investors are now given the exciting and potentially profitable opportunity to invest in shares through commodities! This means that you as an investor can now engage in the extremely simple and profitable Binary Options trade, this time using actual physical commodities as your underlying assets. Investors in commodities are provided with the opportunity to make their speculations on material assets such as oil, gold, silver, copper, platinum and rare jewels, etc- making the trade much more exciting and real!

The traditional commodities market is made up of many different ‘assets’. These assets are physical and real, covering a range of everything from precious metals to crude oil, to agricultural products such as corn and wheat. In Binary Options trade, this massive market is typically broken down and simplified, offering contracts using only a few precious metals as the underlying asset. This makes commodities trading much more straightforward and involves fewer complications. Commodity Binary Options, in addition, have prices unrelated to the actual spot value of their underlying asset. The contracts are always for a set amount of money, with the actual asset’s value being only to determine whether the contract expires in or out of ‘the money’ according to its price movement.

Global online traders all over the world are constantly looking for ways to expand their reach in the global markets. There are a range of assets traders can use in Binary trade including stocks, indices, currency pairs and commodities. The past few years have seen a marked rise in the use of commodities as the underlying asset for most traders in executing their trading strategies. This is due to the fact that while traditional assets like stocks and indices are often exposed to rising volatility, commodities rarely experience such an impact from rising uncertainty in the global markets. There is also the fear of potential inflation, resulting in investors’ “flight to safety” in valuable assets independent of currency. Thus more and more traders are looking at commodities as more secure assets for their Binary Options trade.

In direct trade with commodities using traditional markets, investors are faced with the daunting task of evaluating the magnitude or size of an asset’s price movements. This is more complicated and requires an extensive knowledge of the commodity market, as well as substantial pre-experience in making accurate speculations. Trading commodities with Binary Options, in contrast, is a much simpler and less risk-involved task because, because you can focus merely on predicting their future price direction, without any need to concern yourself with their size.

Success is easy when trading commodities using Binary Options, as it always is with any form of the simple and uncomplicated method of online binary options trade. The only basic requirements are the ability to analyse and make accurate speculations, accompanied by basic skills of analysis and research that are needed when investing in any area of the global markets. If the investor is able to research up on a particular asset and gain enough information to have the assurance on the direction of its future price, the major part of his task is accomplished. It is as simple as that! All that remains is for him to predict a basic time period for this speculated price change, and he is ready for his trade in Binary Options. Put quite simply, if a potential investor decides that the price of gold will rise constantly over the next few months, he could then action a ‘call’ binary option with confidence using gold as the underlying asset. Here, as is obvious, is a mere manifestation of the usual online Binary Options trade using the ‘asset’ of gold as the ‘commodity’.

As the name Binary suggests, there are only two possible options or results to be gained from your initial investment. It simply translates success that in this form of trade depends on your prediction of whether a commodity’s price will go up, or fall down. According to this, the first result you can receive is that you will end in the money, and receive an instant profit ranging from 70-89%. The second possible result is that you will end out of the money, and can still receive over 15% of your initial investment. As the investor is speculating on the price direction of a particular commodity, he can profit both from an asset that is falling, as well as one that is rising. The exact figures of your investment are decided on before you buy the option, thus providing maximum guarantee and minimal risk.

In addition to the simplicity of results in this form of trade, Binary Options also have the added advantage of being extremely short-term. As an investor looking to profit through trading in commodities options, this is a massive advantage as you will receive instantaneous returns as soon as your option expires. This short-term time span can range from a few months, for example, to one week- or even as little as one hour! For example, you can simply engage in commodities trade with Binary Options by speculating that the price of crude oil will go up within the hour. Unlike in traditional market options, the magnitude of the asset's change does not matter at all. An investor is guaranteed his expected returns as long as his prediction on the direction of price is accurate. Online Binary trade with its zero commission advantages further results in the growing popularity of this method in the modern world!

Thus in the commodities market that has recently become very popular among modern investors, Binary Options provide a great and effective form of trade. With lowered risk, maximum profit and the ability to estimate both your potential profit and loss beforehand, it simplifies commodity trading to a basic online contract. Traders can take advantage of global commodities through a simple and accessible platform, achieving profitable returns through predictions on some of the largest and most valuable commodities being traded in today’s global market.