Crude oil binary options

Crude oil binary options

It can signal an opportune time to buy a call binary option on the underlying asset. For example, suppose the price of crude oil has fallen from a recent high and approached its first support level. Savvy traders may buy call binary options under the assumption that the price of oil Commodity Binary Options 29/07/ · Type of available binary options for Crude Oil. The common contract types for trading Crude Oils are: Basic Call/Put options: Predict if the price of Crude Oil will move up or down before the expiry time. Touch options: Predict whether the price of Crude Oil will touch the given strike price before the expiration time

Oil Binary Options

This article is sponsored by OptionBit which is our recommended broker for trading oil with binary options. It is true that this is a binary options trading blog, but the truth is that the principles we shall talk about cover all assets traded in the binary options market.

So we will select an instrument that is traded on the binary options platforms of many brokers to illustrate a typical trade strategy, and that asset is crude oil.

Many traders are familiar with trading currencies, but very few trade crude oil. As such, they are in crude oil binary options position where they are leaving a lot of money on the table.

This is supported by the fact that the same technical analysis principles used in forex analysis are virtually the same principles used in technical analysis of any other instrument, crude oil binary options. What is good for the goose definitely has crude oil binary options be good for the gander as well. Let us examin a binary options trading strategy that will employ the use of the Fibonacci retracement tool, this time not as a strict retracement tool but as a tool that can be used for range trading.

Look at this daily chart for crude oil CLJ1. This kind of trade is a dicey one, because the fundamentals that were pushing crude prices were ones that could not be predicted. This was a war situation, crude oil binary options. Any shift in the dynamics of the war would immediately cause a shift in the behaviour of the underlying asset. This was what was playing out here. Prices were rising as no one knew how long the war would last. As battles for the Libyan cities raged and towns were taken, lost and re-taken by the opposing fighters, prices were doing a dance.

In this sort of scenario, it is extremely important to pay attention not just to the fundamentals, but to the technicals as well.

You may have heard the saying: trigger fundamentally, enter technically. What this saying means is that the triggers for direction are the fundamentals the newswhile technical plays enable the trader to make the correct entry in the direction of the fundamental trigger. As it became obvious that the war was going to last for sometime as talks and mediatory efforts broke down, crude oil binary options, traders crude oil binary options in for a long ride upwards.

But this is where the technicals came to play. In the chart below, we see a double bottom forming at the commencement of the civil war, giving crude a bullish jumpstart. Combining the news and the double bottom formation, a discerning trader would know that the only way crude oil was going was northwards. This sets up the following binary option plays:. For those who missed the play on scenario 1, the next play would be to wait for the retracement that would surely occur as traders took profits.

Plotting the Fibonacci retracement tool from the swing low to swing high, we see this at the Of the two green circles, the second one is the crude oil binary options significant. This is because the first indicates the point of maximum retracement, which forms a key support. It tells the trader that any other retracements would probably test that support level as well.

This sets up the following trades:. The other binary trade types would be too risky to trade in this situation so we leave them out. Hope this short strategy lesson is well understood. Crude oil binary options used this for crude. You can use it for any asset in the binary options market.

Trading Oil on Binary Options Platforms This article is sponsored by OptionBit which is our recommended broker for trading oil with binary options. Scenario 1 In the chart below, we see a double bottom forming at the commencement of the civil war, giving crude a bullish jumpstart. Scenario 2 For those who missed the play on scenario 1, the next play would be to wait for the retracement that would surely occur as traders took profits. This sets up the following trades: 1 Touch trade, setting the

Crude Oil Futures Trading Gets Hot In Binary Options Trading

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Crude Oil Binary Options Brokers Comparison - Binary Options Gold

Click ‘binary options’ and then ‘commodities’. Under ‘crude oil’ you’ll see the various expirations available. If you’d like slightly longer term exposure to the price of oil, click ‘weekly’. This will show a list of available price levels (or strikes) for the binary options Combining the news and the double bottom formation, a discerning trader would know that the only way crude oil was going was northwards. This sets up the following binary option plays: 1) Touch option with an upside barrier above the neckline level of $ 2) No Touch option with a downside barrier below the double bottoms at $ Commodity Binary Options