Gold options trading strategies


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 gold options trading strategies 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 trading 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 gold options trading strategies 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 the strike price, touch or not touching that price gold options trading strategies all no touch. There are variations such as double one touchdouble touch, etc.

The price 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 your mind lately. Gold options trading strategies us now help you along the way. Its daily pip movements are anywhere between 1, pips and 10, pips. The key is to get the direction right, then set an appropriate strike price gold options trading strategies expiry date.

If we get these three ingredients right, the trade will succeed. First, we have to ask ourselves: Traders love gold because 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 there 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 gold options trading strategies the price range of movements for goldand which is not beyond a resistance gold options trading strategies. An expiry of one week was set as the expiry gold options trading strategies.

If gold is expected to be bullish, it should either Touch a bullish target, or Not Gold options trading strategies 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 gold gold options trading strategies binary options.

Why Trade Gold 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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