Gold often becomes a popular asset in times of economic downturn. The European debt crisis from 2010-2012 saw a huge spike in the popularity of trading gold, leading to a significant increase in the price of this precious metal. Currently gold is being traded at store value, a concept which is expected to remain consistent for some time in the future.
In addition to being traded on the open market, gold has become a very popular commodity on the binary market. This means that it is now plausible to generate income online by trading gold both on the national and international markets.
Gold is highly traded both in the United States and within the European Union, and current reports estimate that this trend is going to remain steady for some time.
Recent Improvements to Market Volatility
While gold was originally seeing ‘difficulties’ in the market, more recent surveys imply that gold is back to holding its own reputation as the number one asset on the market because of the increased market volatility.
- The binary market is unique in the fact that it allows participants to benefits from bearish and bullish markets. This allows participants to continue making a profit, even when the market falls.
- Many high quality brokers now allow participants in the market to trade with 60 second options, which depends on market volatility for success. The increased volatility makes for an increased opportunity for quality short term trades. Most participants have switched to trading gold in this market, due to the increased potential for quick profit.
- Gold is currently seen as an ideal asset for making quick short-term profit. It is considered an ideal time to purchase gold because it is currently cheap, which is bringing a great deal of momentum to these trades.
Many brokers have decided to cash in on this current boom in gold popularity by advertising their 60 second options for gold. This is also a sign about the potential value of this asset, given the frenzy that is sweeping both sides of the market. When brokers advertise the popularity of a specific sale, this usually indicates that there is a great deal of trading behind it.
Trading Gold on the Binary Market
The first step in trading any asset, particularly those as volatile as gold, is to secure an account with a recommended broker.
- Seek out a broker that specifically offers gold as one of their traded assets. You may then fill out an application form online to work with this firm.
- Your account will need to include a bank account statement, utility bill or other proof of residence as well as proof of your identity such as a passport or national ID.
- Once this information has been approved your account will be activated and you may begin trading. You may trade on a fundamental or technical basis. If trading on a technical basis you will be provided a chart showing the values and patterns associated with gold. You will need to select the point on the trend where you will place your trade along with an expiry which will allow you to collect profits from the alternating price.
Gold can be quite volatile on the binary market, with daily pips often falling between 1,000 and 10,000. In order to take advantage of this volatility it is essential to set an accurate date of expiration and strike price.
Following the movements or price range of gold while simultaneously watching for the resistance point on the market will help to determine the best possible trades, as the market progresses. Traders will often find more opportunities within the technical trade setups if they take the time to learn and follow trade signals within the market.