Brexit has worried the financial markets. Where stock traders had to watch in disbelief, binary options traders can find great opportunities. Here are three strategies that can help you turn Brexit in to a profitable investment.
Opportunity 1: Trading Brexit News
When the British government is in negotiations with the European Union, there will usually be a fixed time at which both sides will release a joint statement.
These statements are goldmines for binary options traders. Since the EU and the British government have such different goals, there will always be a winner and a loser in these conversations. Consequently, some stocks will strongly rise and some will strongly fall. The news will have a big impact on the market.
These situations are ideal for trading binary options with a high payout.
- You can trade a boundary option and profit from the strong movement regardless of its direction.
- You can wait for the news to be released and invest in a one touch option or a boundary option for the British market. If the news is good for the British agenda, invest in rising prices for the FTSE 100; if the news is bad, invest in falling prices for the FTSE 100. Choose a short expiry, and you should be able to easily win an option with a high payout.
Opportunity 2: German, French, and Swiss banks
London was the most important financial centre of the European Union. After Brexit, many banks may have to relocate their businesses, which will profit Paris, Frankfurt and Switzerland.
It will be interesting to see which of these places can profit the most from the UK leaving the EU. Right now, all European banks profit to some extent from the hopes for more business. Future developments will paint a clearer picture, which will lead to great investment opportunities.
- There will be stocks which fail to profit as heavily as traders hoped from Brexit, which will drag down their price for extended periods.
- There will be stocks that profit more from Brexit news than traders expected, which will push up their price for extended periods.
Both types of stocks provide unique opportunities. There will be days when you can win dozens of trades with long-lasting up- or downtrends in the stocks of Deutsche Bank, BNP Paribas, Credit Agricole, Societe Generale, etc. Take advantage of these opportunities. Especially traders of long-term binary options might find unique opportunities.
In addition to German and French banks, it can pay to monitor the effects of negotiations on Swiss banks. It is difficult to predict which effect the emergence of Great Britain as a new non-EU competitor will have for Switzerland, but it is highly likely that this effect will be significant. Trading CHF may also be possible.
Opportunity 3: The British Manufacturing Industry
There is much speculation about how the Brexit negotiations will affect the British manufacturing industry. Large parts of this effect will depend on the trade deal that the British government can reach with the EU.
Stocks of British manufacturers will provide great investment opportunities whenever news about trade deals reach the market.
- When there is good news, you can trade one touch options and ladder options that predict rising prices.
- When there is bad news, you can trade one touch options and ladder options that predict falling prices.
Either way, you should be able to win a safe trade with a high payout.