5 Golden Rules of Commodity Trading

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This article is sponsored by OptionBit which is our recommended broker for trading gold with binary options. Gold is one of the underlying assets traded in the binary options market. This is just as well too, because trading gold in the commodities market is just too risky for most retail traders. The binary options market provides a way out to trade gold in a controlled environment, with reduced risk of a catastrophic loss, smaller margin requirements and by consequence, lesser commodity gold trading strategy capital needed.

There is no fear of gold rolling back by almost a thousand pips against your position before it decides to do as you wish it to.

No fears about over-exposing your account. If the trade behaves as the trader wishes, he gets his cost back and some extra. In trading gold, there are several things to consider before your desire to make money from it transcends from the pedestal of dreams to the reality of tangible dollars in your hands. Firstly, there is the trade types:.

Here, the trader bets on the price action touching a chosen price level called commodity gold trading strategy strike price, touch or not touching that price at all no touch. There are variations such as double one touchdouble touch, etc. The commodity gold trading strategy of gold can decide to trade within a price range formed by an upper and lower trend line.

Whether this asset decides to stay within the tunnel so created inor break out on either side outis a matter for the trader to decide. A correct choice is rewarded. How about trying to decide if gold will end higher than the present price by the time the trade expires, or lower?

Another way for the trader to possibly make money. These are three possible outcomes that can translate into some cash to finance that shopping spree that has occupied commodity gold trading strategy mind lately. Let us now help you commodity gold trading strategy the way. Its commodity gold trading strategy pip movements are anywhere between 1, pips and 10, pips. The key is to get the direction right, then set an appropriate strike price and expiry date.

If we get these three ingredients right, the trade will succeed. First, we have to ask ourselves: Traders love gold commodity gold trading strategy it is a safe-haven instrument which they can buy in periods of uncertainty.

The answer is a resounding YES! Eurozone uncertainty was really bothering traders. When commodity gold trading strategy is uncertainty, the price of gold only heads in one direction; upwards! So now that we had a direction, the next thing was to determine an appropriate strike price. An appropriate strike price has to be one which is achievable within the price range of movements for goldand which is not beyond a resistance point. An expiry of one week was set as the expiry period.

If gold is commodity gold trading strategy to be bullish, it should either Touch a bullish target, or Not Touch a bearish target. Based on these principles, we had two gold trades on 19 th October, and on 12th January, In the first scenario, we used a bullish gold prediction to predict a Touch on a strike price which was within reach, and it performed as we said it would.

This screenshot shows a No Touch trade for gold, where we used the principles we described above to say that gold was not going to touch a bearish target. A very profitable trade it turned out to be. This is a summary of one of the ways to trade gold in the binary options market.

There are other ways too, but if you master this method, you will make some good money. Binary Options Strategy for Trading Gold Prices This article is sponsored by OptionBit which is our recommended broker for trading commodity gold trading strategy with binary options.

Why Trade Commodity gold trading strategy through Binary Options? Firstly, there is the trade types: Trade 1 In the first scenario, we used a bullish gold prediction to predict a Touch on a strike price which was within reach, and it performed as we said it would.

Trade 2 This screenshot shows a No Touch trade for gold, where we used the principles we described above to say that gold was not going to touch a bearish target.

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The spread is the difference between the floor and the ceiling. Forex pairs move in pips because you have two different currency pairs. When the spread expires, it will close at the settlement price at the time of expiration. The settlement price is based on the underlying market price. This will enable you see spreads that are closest in proximity to strike prices thus helping you choose your trades.