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How to profitably trade oil on binary options? How to make money on oil with only 10$ in your pocket? Profitable strategy using the underlying asset oil in binary options trading!
Due to the fall of the hydrocarbon market over the past year and a half, not one oil-producing corporation and not one large investor involved in investing in oil and this industry went bankrupt.
Let's talk about oil
However, the underlying asset oil in binary options trading, due to its protracted fall, has become a real Klondike for option traders with small trading capital.
On a stable downtrend, private market investors using binary options as a financial instrument, they can make effective forecasts and increase their trading capital hundreds or even thousands of times!
Here is how the cost of oil, as the main trading instrument on the financial exchange, has fallen globally in a very short time period:
We propose to consider the advantages of oil as an asset for binary trading, as well as ways to extract a good income from it.
Oil in binary trading
The first advantage of oil in binary options is its availability for private stock players.
Considering the classic option of using oil in the financial hydrocarbon market in the form of trading in oil futures, we can note that this method of making a profit is available only for large exchange players.
This is explained by the fact that in order to enter such a stock exchange, it is necessary to have a capital of as many as millions of dollars. To trade futures on electronic stock exchanges, you need to register an account and invest tens of thousands of dollars there.
But binary options trading on oil quotes can be carried out with only $100 on deposit (for example, trading conditions at this broker), besides, by doing binary trading on this commodity asset, you can draw up contracts starting from the cost of 1 dollar!
That is, the global financial market is available to a trader to enrich himself on fluctuations in the cost of oil, directly from his computer. According to a simple binary options algorithm, a trader only needs to make a deal with the correct forecast of the movement of the asset value:
After that, he can receive profitability from such a transaction, the percentage of which is 70%:
Therefore, given such high rates of use of oil in binary options, we can say that in this case, trading on hydrocarbons can bring profits of impressive volumes.
Oil trading strategies
The simplest option for system trading on this asset is the strategy of trading oil on news publications of economic indicators that have a direct impact on this asset.
See how the price of oil reacts to the release of statistics on crude oil reserves in oil storage facilities of one of its largest consumers - the United States:
- Due to the decrease in reserves, demand has increased, and hence the cost of hydrocarbons in world markets.
Being aware of such information, you can buy a binary option with a forecast of an increase in the price of oil, and get an almost guaranteed profit from such a transaction with little financial risk.
At the same time, a deal with a forecast of a decrease in the cost of oil is executed when negative data is published.
Trading binary options on oil quotes can also bring profit using indicator strategies.
It will not be difficult to predict oil quotes if automated indicators are used for this - therefore, this method also has high profitability.
In addition, for this you do not need complex strategies with author's or exotic indicators.
An example of a simple oil strategy
Well-known technical analyzers, such as MACD and Alligator, will help to predict the movement of hydrocarbon prices:
In the screenshot, you can see that oil price fluctuations are quite predictable, therefore, any changes in its movement will be indicated to you by indicators in this trading tactic.
In addition, the classic patterns of technical analysis are very effective ways in predicting oil quotes: the behavior of quotes on trend levels, with their reaction to trend lines or the breakdown of such lines; graphic figures (pennant and flag, wedge, triangle, head and shoulders, diamond); patterns created by quote candles.
- Whatever method you choose for binary options, using it on the underlying asset oil will bring you a decent profit!
That is why oil, in option trading, is perhaps the most attractive asset in terms of achieving large amounts of profitability with low levels of financial risk.
It is much easier, after all, to get 70% of income for the amount of a binary option transaction than in futures trading on specialized exchange platforms. Option traders, when trading on oil quotes, can increase their capital by more than 300% daily!