Trading Digital options in the year to come
Now is a good time to reflect on some of the current affairs that might provide binary options trading opportunities over the coming months. The global economy is constantly evolving. Binary brokers are now providing more of these global assets to trade than ever before, from commodities to forex. While the time scales might be longer term, price movements will reflect market sentiment. This volatility will provide good scope for profit in binaries.
Stocks
Some major UK companies will be closely monitored over the coming months. Retail giant Tesco (TSCO) has plenty of work to do, restoring investor confidence and turning it’s fortunes around. Discount brands have squeezed the sector relentlessly and that looks set to continue.
Retailers generally may not have enjoyed their Christmas as much as they might have hoped. The growing phenomenon of ‘black friday’ sales has forced many retailers to force margins down even further. Deals could have been made with manufacturers but they may not have helped sufficiently to give shops the boost they needed. Early result announcements will be waited on eagerly and in the build up, prices could move markedly.
Manufacturers should, in theory, have managed to maintain margins throughout the sales. According to the latest sets of figures however, this has not been the case. They also fared badly during the latter part of 2014, and certainly in the UK, the outlook remains mixed.
Political change
The countdown to the general election in the UK has begun. The major political parties have drawn up the usual battle lines, with the NHS, immigration and the economy central to any debate. There is genuine intrigue however, in the role that parties outside of the political mainstream may yet play. The Scottish referendum remains fresh in the memory, and gains made by UKIP during the last few months also add weight to their claims. With polls very tight, there is already talk of which minority parties may align themselves where, making the outcome anything but predictable.
Investor uncertainty normally results in one thing – volatility. Uncertainty is what currently surrounds the political landscape at present. With all sides predicting financial doomsday should the wrong party gain control (in their view), investors are bound to remain jittery. Forex trading during these times will require resolve and bravery – but those traits may well be rewarded.
Commodities
Oil has been a huge talking point in recent months. The collapse in the price has repercussions far beyond just that one market. Numerous economies rely heavily on oil, which means Forex movements will follow the crude price closely. Not least the Russian rouble.
Experts have made predictions about a recovery starting in the second quarter. Exactly when that might start and equally, how low the price will go beforehand remain to be seen. Again, these are markets which may provide binary options opportunities if traders have a strong view.
Trading oil companies (or related businesses) may also be of interest. The falling oil price will mean lower stock values. Even if a recovery starts however, prices could then move either way. The per barrel price of oil has reached such a level, that some businesses may already be struggling. Those backing some firms to recover may be more than disappointed if rather than come back, they go under.
Binary trading has never been for the faint of heart, and those with strong opinions about what may happen in the short term to some of these markets, will have no shortage of opportunity to profit.