Gold, silver, copper, and oil – these are just some of the profitable binary commodities you can trade. In contrast to trading commodities directly, trading commodities using binary options is much easier. This is due to the fact that in binary options trading, you don’t have to assume about the magnitude of the price change, which comes as a prerequisite in the traditional commodities trading. You just need to predict whether a commodity’s price value would rise or fall by the end of the expiration time.
Why choose binary commodities over other assets?
The enticing rewards you can get from trading commodities are just irresistible. It’s a great asset to trade because you only need to predict the direction of the asset’s movement and not necessarily the size of the price change. This way, you have higher chances of making the right predictions.
Furthermore, you can easily increase your earning potential by opening several trades. You can develop a trading strategy based on the current market trends, so researching about your desired commodity will certainly give you an advantage. Once you’ve gained confidence in trading binary commodities, opening a number of trades would give you a number of profitable payouts as well.
How to trade binary commodities
The key to succeeding in commodity trading is to have adequate research and analysis on the commodity you wish to trade. Since commodities possess high volatility, the fluctuations of its prices can be a lot larger than those of the EUR/USD currency pair, for example.
Once you already have a grasp of the nature of binary commodities, you can then decide to buy either a consecutive number of “call” or “put” options for maximum profits. Trading commodities is basically the same with other assets, where you’ll need to predict the asset’s movement by the end of the expiry time. Get a correct prediction and you gain money; however, make a wrong prediction and you gain nothing. The major difference between commodities and other assets is that trading commodities would require wider research for you to get acquainted with it.