In this article I will try to explain you what is forex speculation, risk aversion, carry trade and what are forex signals. This is by no means a text from a professional forex trader, but of a trader who knows what is what on this exchange market. I used Binary Option Robot for binary options over some time, and therefore I have learned some important aspects of Forex trading also.
Speculation are done by well-known traders. This can influence in a both good and bad way position of a currency on the forex market. Investing in stocks is a good way of keeping yourself in the money, but most of the speculators are a different kind of people. Most of them have hedge funds and are well positioned. Go to top10binaryapps.com and you will get it. They influence the market with speculations about changes that may or may not happen. Consequences of some events can have further impact because of some speculations from this kind of people. Influx and investment in traditional instruments like bonds can and does have a positive impact to economical growth with the aid of capital it is considered a good thing. On the other hand speculations are, by many, considered as a form of gambling, which more than often interferes in a country’s economic policy which is a bad thing in most cases.
Many label speculators as bad guys but there are some who think otherwise. Some argue that speculators are just opening the eyes of majority of people and are showing them what is going to happen. These things can cause some events to happen before than they should have, which can be again both good and bad thing, considering the fact they will happen and that they can’t be avoided.
Risk aversion is done by liquidation of assets and transfer them to much safer currencies. This can be affected by connection between people and currency and it can save a currency from imminent loss of value. This happened to Dollar during a crisis back in 2008. Even though USA was strongly affected by crisis flood of people buying dollar saved it from losing value and made it the strongest currency during that period.
Carry trade is an act of buying a currency that has bigger interest rate over currency you have. This can be very profitable especially if there is big difference in interest rates. But this strategy can back-fire because big fluctuations in exchange rates can cause enormous loses. So with this kind of trade people can earn millions, and lose them in quite a short time frame.
Forex signals or trade alerts are tools of more experienced traders. These can be used in a number of ways and they cost money to use. A lot of binary options have integrated these signals in their software, like for example IQ Option. One of the way is to have a trader send you info about good trades via SMS or mail for which you pay a certain fee beforehand. There are software options, where software scans market and informs you based on its calculation what trades are or will be worth your money. There is also software that will do trading on your behalf, under parameters you set. These things don’t guarantee you a safe bet or easy money, best way to trade on forex market is to understand how it works.
Every market has its own rules of functioning and before you make some money on the market, you have to understand those rules. If you have a prior experience in the market you are trading, it’s highly likely that you will be successful. Considering the fact that almost every form of investment is actually a gamble, we can definitely then say that binary options are also another form of gambling. It’s just that some people don’t want to admit that, thinking they are not gambling since they are trying to make some money. But are they really making money ?
Fast growing business
Trading with binary options actually started about some 7 years ago, when SEC approved exchange of these options. Since that time, this business has been growing very fast and attracts thousands of young people who want to earn money. Anyway just go to Top 10 Binary Strategy and wake up. Although binary options trading did exist even before this moment, this was available to only high net worth, recognized traders and brokers via the counter market. In the year of 2007, SEC made these options available to retail traders, and little by little even CBOE and American Stock Exchange made an offer of binary options trading for small time traders.
In the beginning, binary trading was especially complex trading business and it had only CALL options. Later, due to expanding of types of available options, followed by significant improvements in trading platform, binary options trading became much easier and understandable to inexperienced traders. Also the introduction to Forex trading greatly boosted the popularity of this business. In the beginning, all was simple and didn’t have that much possibilities. Now we have even options to choose the exact amount of money we want risk, but also strike price and expiration time. This opens totally new world for trading, making it more interesting and unpredictable.
Great assets for trading
Binary options can be found in all assets that are tradeable, having an enormous amount of contract types that can bring money if used correctly. Nowdays we have hedge funds, which are focused on this kind of trading at the first place. Like I said, in the beginning this trading business was only available to recognized and specialized brokers, while now you can find these binary options trading platforms along with the Forex. It becomes clear that this business will not stop to grow in the recent time due to its simplicity and yet, possible big profit. There many new trading platforms and brokers, so we would like to recommend you Quantum Code.
In the end, this business is some kind of gamble, but what business is not gambling in today’s world ? Everything can go wrong in the second and you can end up losing your money. Financial decisions have always been the hardest one, since you have to predict the possible outcome, which is good at the time when you make an investment. Binary trading business is nothing but a game of chance, mixed with the trading experience that is must if you plan to succeed in this business. Luckily, we have tons of materials available for reading, which could be our leading trail for making some serious money.
Any kind of trading is somehow a tricky business since you never know what you are buying. Not that you don’t know, it’s just simply unpredicted action that can be bad at some point of time. The basic logic of trading is based on offer and demand – I have money while you have the goods and according to ratio you create the price range.
In order to start some kind of business, even trading, you must have some money. That is why you invest money into something, expecting to create some profit. Click here to learn the secret of profit making. Logically, an income is related to the amount of investment-the bigger investment, the bigger income. It’s so simple, isn’t it ? But from the other side, it is actually a version of gambling. You invest (that is pay) and wait for something to happen that will make some profit. You either have nerves of steel that will lead you eventually to the success, or you quit and lose your money. Am I speaking about the stocks ? Binary Options ?Yes !
Mostly when people make some form of investment, they purchase an asset which has a certain value at that point of time, while possible profit and loss are corresponding to the change of value of the asset.
An investor can decide to sell the asset to the market. If it sells in the moment when the value of the asset increases, automatically gains profit. Otherwise, loses money. This is very characteristic for bonds, stocks and shares, while binary options are little bit different. Binary options are in a nutshell estimates of the possible value change of a certain asset, during particular period of time. That means that you “can guess” will the price increase (Call) or decrease (Put). This does not produce the same amount of stress as regular stock trading does, and this is one of the reasons why binary options trading becomes more and more popular.
Various assets for trading
The diversity of assets that can be traded varies from Indices (Nikkei or Nasdaq for example) and Forex (which is a mix of all respected currencies like : Euro, USD, GBP or JPY) to commodities (Silver, Coffee, Gold etc.) and stocks from Deutsche Bank, Google or Coca Cola. This provides a lot of tactics and ideas for different traders who have experience in some of the fields that I have mentioned.
Binary options trading is very interesting and popular, which resulted in tons of trading platform and online brokers such as Online Wealth Market that even provides an academy for learning and understanding the principles of binary options trading. Making money hasn’t ever been easier, but it still seeks some basic knowledge and understanding rules of the term investment. As in every business, you are trying to generate some income. In binary options business, the process of making money is a long-term agreement with your will and nerves. That is why this business is partially not made for people who don’t have some prior experience in this business. The key to success is knowledge – it is the same when it comes to the business.
Forex is an abbreviation of foreign exchange market, and is also known as currency market. Forex is a decentralized market on which currencies are traded. It is the largest market because of the volume of trades that happen on it. I kind of prefer working with the canuck method. Price of a currency is considerably influenced by a volume of trades it participates on a forex market. Biggest players on forex currency market are international banks.
Forex currency trading works on a few levels, you may or may not be aware of. There is a behind the scenes trading between the banks and within the banks which is called interbank market. Most of the “dealers” on foreign exchange market are those banks, but there are few other players that act as dealers, those can be other financial firms and insurance companies.
Forex has no supervisory obligations in trades that happen.
Forex also acts as a assistant in a international trade of goods. It allows company to pay for goods from other currency based country in the currency of country that is selling goods, even though the buyer works with its own currency.
Forex is considered a place of perfect competition between parties, and only thing that can disturb that competition are countries that invest money to support its own currency.
You must be familiar with currencies if you want to earn money
Trading on forex is a bit complicated thing to discuss. In order to earn money by trading on forex you have to be familiar with different currencies and many other things. You earn cash by buying other currency with your own. The point of that is to buy a currency that is weak but you know it will get strong in future and thus your amount of that currency will have more value. This is a very simple explanation, there are a lot more things you need in order to trade currencies on forex.
A great part of forex trade comes from commercial companies that seek foreign goods. They trade in small amount of money and thus have little impact on currency value. On the other hand multinational corporations can cause big and sudden impacts on value of some currencies because of exposures which don’t reach other parties.
Banks as steady traders
Central banks are big players on forex.
Their role is to keep their country’s currency on an often fixed value. They can use reserves of other currencies in order to keep it so. And because they have a role of keeping inflation low they tend to invest in their currencies to keep them steady. They don’t play to win ( to earn money ). And if they lose money on forex they can’t go bankrupt, unlike everyone else.
In order to cash on you have to follow the events that happen in countries whose currency you are interested in. They central banks can and will influence the value of their currency and that is a way of earning money. But most of the trades are based on speculations. In order to speculate correctly you have to follow events and know what can influence what. Or you simply buy binary robot system like Millionaire Blueprint and enjoy in your earnings.
It’s always, and I mean always, advisable to check internet for a lot of information about a binary trading site or software before jumping into it. This can prevent a lot of problems involving you money or some similar problems. So searching for different reviews and forum threads about a site is always a good thing.
This time I went on the internet crusade against 24option. Doing things like this is important, because some sites may be legit but they also can have long withdrawal times or issues connected with it, or bad support that doesn’t do anything and similar things.
You should not trust all comments you read, they may be fabricated, but if there are a lot of negative or positive comments about a certain site you should not ignore them. As I already said 24option will be my target for today, so let us see what kind of experience people had while trading with 24option.
One of the complains from a person from Germany was that the software that 24option provide, German Binary Robot caused a loss to his account. First this person used this robot in his trading, but after terrible experience with this robot, only 1 in 3 trades ration won he decided to deactivate this robot. To his surprise the robot at one point activated itself and placed few trades for him, that would result in further loss. So he decided to contact support from 24option to sort that out, to cancel trades and to deactivate that robot. After long chat where he argued with support while they avoided answering his questions directly, those trades ended, one won and other was a loss which resulted in losing money. Support only tossed him from Robot to 24option and vice versa.
Another experience has nothing to do with “third” party software. Sam requested withdrawal of his money from the 24option but he was told that he needed to contact someone from 24option before that withdrawal can go through. After this he was contacted by a person known as Jerry Gallo who convinced Sam to place all of his money to few trades and he did. The luck was on his side and he ended in money without losing too much. After that Jerry asked his password in order to go through with the withdrawal. Jerry also stated that he must withdraw at least 200 dollars and that the process would last for 48 hours.
Sam did that and after 48 hours he checked his account and realized that is not transfered yet. So he went on 24option to check what was the issue, and he found out. Just under an hour after his last conversation with Jerry, the trade with all of the 200 dollars was set and it was a loss. Angry Sam went to support because he didn’t approve that trade. He was promised that money, few times in fact, by the support buthe never received it.