Trading Binary Options with FTSE 100 Index

Trading Binary Options with FTSE 100 Index

Submitted by adil on Mon, 10/20/2014 - 04:12

Trade Binary Options with the FTSE 100 Index

If you have set your eyes to trade binary option trading on the assets available through London Stock Exchange, then the famous FTSE 100 is your best bet. Let us see which strategy is the best to make profits with FTSE 100 Index.

Best possible strategy:

Scope of analysis: The FTSE is a group of 100 established companies situated in UK which is directly related with the European Union Trade Zone. UK is not a member of EU, but since most of its trade and economics is directly associated with other members of the EU. It can be safely said that the overall market performance of EU can directly affect the indicators originating from UK. So it is very important for a binary option trader to also keep an eye on EU markets.

Tools to choose: Critical and timely evaluation will be very important to make in-the-money trades. There are several analysis and trading tools available online, some simple ones are provided by the brokers. More sophisticated ones can be found online and most of them are totally free. Market news, price graphs and charts and many others can be combined to get the most precise idea. Care must also be taken not to burden with too much data to process or otherwise the analysis will be lengthy and the best time to make trade will be lost.

How to trade:

If you have some experience trading binary options, you will not have much difficulty in finding good information and opportunities to trade with FTSE 100. Most of the brokers have current and historical data and you may even subscribe to Bloomberg or Reuters right from the broker’s dashboard. The first step of any broker should be to formulate a simple yet effective strategy based upon the price movements.

Adjusting with a new asset takes time; the trade should always work from the scratch to build a substantial and productive trading venture. Every time a new asset is chosen, start from the basic Put and Calls binary option trades. This will help the trader to make profits when the market is relatively stable. After more experience and knowledge is gained, different advanced strategies and different binary option trades can be experimented with.

When the trader is ready for trade customization, request for Option Builder from the broker. This feature will greatly help in expanding your business by assisting you in making investment decisions etc. Earning reports are also an important source of historical data which are only published 4 times a year. Keep an eye out for company mergers, policy changes and other critical information that can sometimes force the traders to completely reverse their trading strategies.

If the trader is not located in UK time zone, then it is very important to synchronize his or her own trading timetable according to the UK market trading time. This will help in exploring more opportunities as some assets are only available during the specific market hours.

FTSE 100 is not as volatile as American or Asian markets. This stability means less profit margins as higher volatility is higher risk and eventually higher rewards. The trader must learn the specific market information and analysis every aspect before entering the market.