What Are The Future Options On World Indices?

To add value to the overall policy of trading one can add binary options in it to understand the future options of trading on world indices. The predictions can be made of the future movement of the price in the market index by trading on the future indices. These future indices are there in the global market, which becomes the best part of it as they get listed on the major stock exchanges. The strategy can be made for trading by recognizing the  signals of the future indices. 

Understanding Normal and Future Indices
There are two kinds of indices normal indices, in which average range of stocks is determined and as per their index the range of the number of stocks can increase from dozens to hundreds. The constancy of the market is the pointer to the value of an index in the particular region. The other kind is future indices, which depends upon the value of the market index. The market analysts look into the stability of the index’s components and the economy and hence hypothesize on the future options of the world indices. These future options get scheduled as the index in the same stock market. The changing views of the market analysts make fluctuation in the value of the future index. In order to implement trading on future index the binary traders should calculate the predicted future value that might fall or rise in that time period.

Making future option on world indices for long terms
The possessed knowledge on the future value of the indices can be very helpful in getting benefits from the future indices. While having future choices for the value of the index on hourly and daily basis one can easily get the benefit of getting the returns while doing binary trade. By making the long term predictions  one can get quick return.

Options for placing your trade on future indices
By having options of the world future indices to pace the trade on, one can get the benefit of trading on the futures indices from the US market when the European market gets closed. It is very important to understand the shifts in the market while trading in the future world indices. The market annotations should be given the supreme importance as the future value of the world indices depends upon the sentiments of the overall market. The proficient analysis of the leading analysts is very important as it helps one judge the value of the world indices as it may rise and fall. By looking into the news of the financial changes in the global market, one can make better future options on world indices. 

The overall strategy of trading can get diversified while trading on the future indices. It is very important for those who want to know the future options on world indices to understand the options that have an impact on these world indices in the future. The profitability of the trade can be improved by placing the future options on the world indices.

This post is written by the binaryoptionshub.com.

News Trading Guide Series 3 - How To Protect Your Trades From News Spikes With Trailing Stop

The impact or outcome of an economic news event can cause great anxiety, nervousness, panic & excitement. The result of this is the sharp spike, and whipsaws that either adds to the profit or drains the account in few seconds. This article reveals a solution on how to guard yourself from such occurrence, and profit from it.


FACT: A news outcome can cause a spike in a currency to move sharply from 60 to 100 pips in seconds. That is what some traders struggle to get in days and weeks. This makes news trading extremely beneficial, and at the same time very risky



The question is why does this happens? Simple - the global market always reacts instantly to heart breaking or happy cheering news about the status of a country's core economic indicator, which is used for investment decisions. The two (2) major decisions are to invest or to pull out. For example, during the Swiss Franc Euro Capping episode in January 2015, the reaction world wide was extremely drastic up to the extent that major brokers, and banks were seriously hit.

FACT: A HotForex trader (Ayodele Odingboro) made a gain of 1,355pips while trading the CHF pair during the Swiss Franc Capping Episode despite the extreme spike.

The following are certain to happen after figures or decisions are released from an economic news event:
  1. Market moves to the direction of the outcome of the news release (one way instant direction).
  2. An indecision may occur leading to whipsaws (sharp up and down movement) hitting both SL instantly.
  3. Nothing happens, and price continues on its natural path.


HOW TO GUARD YOUR TRADES FROM NEWS SPIKES
One of the best tools that can protect your account from news spikes, and at the same time profit from it whether the trade is going against you is Trailing Stop. I want to state this clearly - there is no other tool that can do a perfect work than the Trailing Stop Tool. Any news trading EA or system that does not integrate trailing stops is highly deficient.

What Is The Best Amount Of Trailing Stop To Use?
All news event comes with different impact. Some have a usual pattern like the UK MPC Rate Decision, GDP Reports, Unemployment Data, CPI's, & some speeches. They often manifest with sharp or steady spike. Therefore their trade settings differs.

  1. For high impact news trading or events that causes lots of volatility in the market, use high or medium trailing stops. The idea is to capture the fast movement of the market while giving it some fair distance, and then later adjust it upwards until your TS is much closer until it either reaches your TP or price returns back hitting the TS
  2. For events that comes with slow paced movement at the beginning like speeches, wait for price to advance gently until you are sure of its direction. Then use a medium size TS until the event is over.
  3. All other events use medium TS. Do not use very tight trailing stops because immediately your order is hit, the TS quickly activates, and the tendency for price to retrace, and hit the TS and then reverse back is very high. So capture a bit of it; leaving a safe distance as it advances, and then as soon as it picks up momentum you can adjust it to get closer.
  4. For events that has a reputation of creating whipsaws (fast up and down movement), which is capable of hitting both orders (BUY/SELL), then you can use tight trailing stops. The essence of this is to grab the best possible pips from both sides. There are cases where this happens in the speed of light. You only see the effect in your account journal. It is most times beyond our control.

Additional Tips
High Trailing Stops - 75 to 100 pips
Medium Trailing Stops - 50 to 65 pips
Tight Trailing Stops - 30 to 45 pips

The above pip value is for Five (5) digit pricing brokers. It is also applicable to Four (4) digit pricing brokers.

Furthermore there are no fixed value for Trailing Stops. You need to closely monitor and understand how a currency reacts and come up with the right Trailing Stop that can manage the trade during the impact.

Quantina News Trader EA Ultimate 2015 (Auto & Manual) trades the news with a customized trailing stop feature which can be modified to users taste.

Image "Traveling at Speed of Light courtesy of digidreamgrafix" / FreeDigitalPhotos.net

Making Daily Forex Strategies Work

The behavior of the market within the day is important to all Forex traders especially to those who are into short-term trading business like scalping, day trading, and swing trading. To these traders, the most important of the daily Forex trading strategies is the daily chart. A daily chart is a line graph that shows intraday movements of a given security. Trading using the intraday movements is not only stressful but also very demanding too for focus and energy. 

How it Works
Trading using the daily charts is easier as compared to the intraday fluctuations. A daily chart reflects all of the price movements for the period and is typically used by day by traders to implement short-term strategies. Out of these daily charts, Forex trading strategy charts can be derived that are ideal for those with full-time employment. In a way, this means the translation of the daily trends into plans, daily Forex strategies, and risk management strategies. It also gives these people the opportunity to trade full time after work and the chance to build a huge equity base slowly but surely. This is quite possible because some of these daily Forex strategies are capable of generating 100-500 pips per trade without the need to be glued on the computer for hours when trading. Incidentally, pip (or pips) means “percentage in point” and it refers to the smallest price fluctuation of a currency as it relates to another currency. A pip’s value is 1/100 of a cent.

Alongside the use of the daily charts is the so called Daily Timeframe Strategy which is based on two indicators: Bill William’s Acceleration/Deceleration Indicator (AC) and the Stochastic Oscillator. According to William, price change is triggered by momentum changes, which in turn are influenced by acceleration and deceleration. Hence, being able to identify acceleration and deceleration is enough to anticipate what’s forthcoming. Meanwhile, Stochastic indicates events of overbought and oversold in the trading market. Daily Forex trading strategies like this Daily Timeframe Strategy must be practiced at least on a demo account to see how easily it can make hundreds of pips per trade. 

Using daily Forex strategies strive to develop your own indicators to watch out for. Since Forex is unstable, make sure you know the signs when it is volatile. This is how traders end up losing money. One does not need to dwell too much on the technical aspects. Keep things simple just like how daily Forex strategies work. 


Author of the article is Zahir, an Analyst from Forex Trading Egypt, you can find more helpful tips here http://www.investopedia.com/forex/strategies/ 

Can Online Trading Be a Hobby? - Find out what people trade online, how it happens and reasons to start or to stop!

So you have decided that your life doesn’t seem to be quite exciting and you are looking for a new way to entertain and enlighten yourself. You may also be interested in having a hobby you can make money from. These and other reasons can potentially lead you to online trading, as it is an interesting and comfy activity performed directly from any device connected to the Internet.

Nowadays we have millions of retail traders. As the markets are getting developed and more accessible, today it is possible to start trading online with as little as 50 USD with one of the CFDs or Forex brokers. The whole registration process can take about 3 minutes and deposit via card takes another one. The trading platforms are quite intuitive and could be run on any device. However, even though trading is accessible, it is not suitable for everyone. 

In general, there is quite a thin line between a hobby and addictions. These are in fact almost the same thing, the main difference is that a hobby makes you good while an addiction makes you worse. Unfortunately, online trading can do both, ruin your life or make your life better.

Trading is great, as it lets a person to examine the market, understand the trends, stay up to date with the economic development and the whole political situation. Trading makes you think, analyze and predict. Even though trading is exciting, it is also a bit stressful and it teaches you to cope with nervous occasions. Of course, successful trading also gives you extra funds.

From the other side, people can easily get into a losing spree and forget about all the fun and passion for knowledge. Such people usually start to be obsessed with just getting their money back. Others simply want to gamble and they just don’t have time to learn trading, they simply want to place a trade and see what happens. This can be fun as well, but outside of the short term, this will only cost you money and will not give you anything back.

So should I start trading? If you are a person who is able to spend at least 10 hours a week on learning, can control your emotions and are not afraid - then go ahead. Failure to dedicate sufficient time, psychological mistaken and fear of new will definitely stay in your way. What is best about online trading is that you can start it as your hobby totally free. Almost every broker a free account with virtual money and a bunch of learning opportunities.

This article is supplied by Forex Bonus Lab. Check out more content at forexbonuslab.com - best forex broker reviews, bonus offers, trading tips & more.

NEWS TRADING

Welcome to our News Trading guide, and tips.  Information posted here is not a recommendation to BUY or SELL any currency. Traders should be aware of the extreme volatility in News Trading, and therefore trade the news with serious caution. Please see our Disclaimer Notice.

3rd Week of June 2018
Welcome to another week filled with speeches from key central bank chiefs and a few important Interest Rate decisions.

It is likely investors will pay much attention to the Interest Rate decisions from UK and Swiss and probably statements from ECB and Japan though we do not expect much action in the market from the scheduled forums and conferences. 

We expect some great amount of volatility during these events, which will create opportunities for News Trading as usual.

Join us and get set for action. Wish you a pipfull outcome this week.  NB: See our summary analysis of our news trading results. Click Here



Thur June 21st, 2018 [CHF Interest Rate Decision/Press Conference]
Event Time: 3:30am EST | 8:30am GMT +1
The Swiss National Bank (SNB) will unveil interest rate decision for the Swiss Franc at the early hours of the US Trading Session. Expectations are quite high for a change in interest rates though the SNB may likely do nothing going by previous statements from Thomas Jordan - SNB Chairman. However if we get a change in rates today then expect a great impact in the market for the CHF pairs. 

Press Conference(9:30am EST | 2:30pm GMT+1)
A press conference has been scheduled an hour later after the release of the interest rate decision. The SNB Chairman will make key statements on the factors that led to their decisions and present other Monetary Policy insights to the press.

If we do not get any change in interest rates then Investors will pay very close attention to the press conference which in most cases can stir up the market.


News Trade Type/Method: [High Impact/Spike] Market Order; Pending Order; Straddling

Past Review: Interest Rate was last changed downward from -0.25% to -0.75% in Jan 15th 2015. 

It is likely rates may not be increased today following recent statements made by Thomas Jordan to CNN Money in June 7th 2018, concerning furture decisions on increasing rates.
 
Recommendation: BUY CHF if interest rate is increased to -0.25%. SELL if it is reduced to -1.25%


Press Conference: Carefully pay close attention to statements and answer to questions bordering on Monetary Policies, Inflation, & when likely rates may be changed (if not changed) to decifer the outlook of the CHF before taking any decision.

BUY CHF if the statements and answer to questions sounds positive. SELL if key statements appear negative. Better still feel the pulse of the market and follow the direction.
 
Recommended Pairs: USDCHF, EURCHF, CHFJPY, GBPCHF, CADCHF

 
**Recommended News Trading Tools**







Thur, June 21st [UK Bank Votes/Interest Rate Decision] Event Time: 7:00am EST | 12:00pm GMT +1
The Bank of England will unveil to the public the interest decisions and results of votes cast by MPC members on interest rates.

The odds and support for rate hike in London is apparently getting higher though words on the "streets" firmly hold on to a "no-rate-hike" in June until August. 

However if this is true, we'll pay close attention to the results of the Bank Votes by the MPC members, which will give us some direction on where the British Pound is headed to. But if we get a surprise today then expect the GBP to rock the market on whichever side the decision is taken.


News Trade Type/Method: [High Impact/Spike] Pending Order; Straddling

Past Review: Interest rate was last changed in Nov 2nd 2017, from 0.25% to 0.50%. It is certain that rates are overdue for a change but the timing recaims an uncertainty from BOE Chairman. 
 
Recommendation: BUY GBP if Interest Rate is increased to 0.75%
or if the number of MPC members who voted for increase in rate is higher than those who voted for decrease in rates. SELL if the Interest Rate is cut down to 0.25% or if the number of MPC members who voted for increase in rate is lower than those who voted for decrease in rates
 
Recommended Pairs: GBPUSD, EURGBP, GBPJPY, GBPCHF, GBPCAD
 
**Recommended News Trading Tools**







Fri, June 22nd [CAD CPI m/m/Core Retail Sales m/m]
Event Time: 8:30am EST | 1:30pm GMT +1
The Canadian CPI and Core Retails Sales figures for the month of June has been scheduled to be released same time. Both economic indicators are important as they reveal similar consumer purchase index of the Canadian Economy. It is a dicey event to trade because divergent results may cause chaos in the market. 

But if the results from both events tally in the same direction then it's going to be an easy shot for traders.

News Trade Type/Method: [High Impact] Pending Order or Straddling

Past Review: The Core Retail Sales performance has bnot been impressive looking at  the results since Jan, 2018. However some of the negative outcomes were revised upwards several times which makes it a bit unsteady. 

The CPI has been a bit balanced with two negative outcomes and two positive outcomes since this year.   
 
Recommendation:
BUY CAD if the CPI comes out at 0.6% and Core Retail Sales comes out positive at 0.3%. SELL if the CPI comes out lower at 0.0%, and Core Retail Sales reduces to -0.7%

NB: After the release of the actual figure, wait for few minutes to check if the previous figure would be revised before taking any decision. Also ensure both figures tally or study the market pulse before taking any decision  
Recommended Pairs: USDCAD, CADJPY, GBPCAD EURCAD

 
**Recommended News Trading Tools**









These are the high impact news trading tips and guide for the 3rdd Week of June, 2018. Feel free to leave your comments, inquiries, and suggestions.