One of the most popular commodities that is traded on the binary options market is gold. Gold is also one of the most popular assets for binary traders. The reason for this is because of gold’s volatility and because not many economic factors affect its price. Gold provides one of the safest assets and during times of economic instability provides a fairly safe investment.
The high value of gold keeps some retail traders away from it. In most cases a trader would need more than $10,000 to begin trading gold. Trading in these large amounts of money can lead to large losses. This is another reason trading gold on the binaries market is preferred by many traders.
Gold Trading Advantages
Retail traders benefit from gold binary options because it provides a way to have complete control over losses. There is no need to worry about margin or leverage because it is possible to trade with a smaller capital. Not suffering from huge losses is one of the main benefits of trading gold as you are protected should the asset value of gold suddenly decline.
Traders will find that gold typically offers a return rate of around 85%, but this amount depends on the types of binary options that are traded. Typically, gold will be traded using high/low options, no touch/touch options, or call/put options. When trading gold binary options, you will either lose the amount of money that is bet or win an amount that has been set by the broker used.
Gold Trading Tips
When trading gold, it is important to remember that it is a volatile asset. This means that the value can fluctuate many times daily. The drastic movements in price can cost a lot of money if you are not trading using binary options.
The fluctuations in price make gold a great asset for traders using a touch or no touch option. Traders who correctly predict the movement of the price will win. This accurate prediction must be in combination with the right strike price and the right expiry time in order to make the most money.
When trading gold on the binary options market it is important to consider economic uncertainty. In times of crisis many traders turn to gold as an investment because it is considered to be one of the safest assets. This means that the price of gold will go up and your predictions should be made accordingly.
