Binary options trading is the forecasting of prices in the financial market at a certain point in time in the future. To start working in this direction, you first need to understand how to conduct an analysis. But traders have another question: which trading instrument to choose?
First, let's remember what exactly is meant by this term in the financial markets. A trading instrument is here called the securities of a certain company, or currency pairs, if we are talking about Forex. When you decide to enter into binary options deals, you can choose from a very extensive list, which includes both the foreign exchange and the stock market. What's better?
Everyone can only answer this question for himself. But there are basics that come in handy when choosing:
- If you are already a trader, even a beginner, then the best option for you will be the instrument that you are already using, the movements on which you understand well. Then the analysis will be the simplest, and it will be quite easy to predict the price direction for the near future.
- If you have not yet traded in the financial markets, then choose a segment based on what is closer to you. For people who are good at economics or interested in stocks - in particular, American companies, stock exchanges are more suitable. For those who understand almost nothing in this direction (and at the same time do not want to gain knowledge at all), it is quite possible to choose Forex. Technical analysis works well on it, and you will be able to make predictions without knowledge of economics.
- If you want to use only mini-terms in your work - a minute, an hour - then you can take any segment of the financial market. The economy rarely influences such transactions.
- If you have chosen stocks, then you will need to have at hand the charts of exactly those companies that seemed attractive for making deals. Most often they can be tracked in the MT4 terminal. When choosing deals for a period of 1 day or more, it is better to always be informed about the economic condition of the selected companies.
- If your choice is Forex currency pairs, then you should be wary of pairs with the participation of the yen, as well as unpopular cross rates.
In fact, there is no need to "go into the jungle" and choose some exotic pairs or shares of little-known companies. When you learn how to analyze charts (if you haven't already), you can go through them and find out which tools will be interesting and most convenient for you to predict personally. In addition, you can immediately start with the simplest and most popular ones - for example, with the euro / dollar, pound / dollar, etc. Even if it will be difficult for you to conduct an analysis for such a pair, you can always find, at least, publicly available clues, and sometimes a full analysis of possible transactions. To do this, you can use free analytics.
Therefore, you should not look for a magic trading instrument. Of course, if you really want to, you can do it later, when you have already gained professionalism in the chosen business. But at the initial stage, it is quite possible to get by with the most common Forex pairs. Or stocks of well-known companies, if the stock market is closer to you.