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Binary Options Trading Guide Oil

Binary Options Trading Oil






Crude oil is another very popular trad-able commodity in the binary options trading market. Modern life is heavily dependent on oil as a main source of energy. Oil is used for any means of transport such as vehicles air crafts and also electrical power plants. Many plastic products and Kerosene oil are all products made out of oil. During the last 15 years, there has been a breakthrough in the development of a substitute for oil, but in the near future it doesn’t seem to be enough to replace oil as an energy source for engines.Common fractions of crude oil are:petrol, diesel, kerosene, jet fuel, fuel oil, liquefied petroleum gas, butane and alkenes which is used in the plastic industry. There are traders who are specialist in the binary options trading oil business, these traders only deal with the crude oil and nothing else. These experts make a fortune in that small niche in the binary options trade.

binary-options-trading-oil

 

transportation is one of the most important elements that influences the price of oil. The price of oil transport is known to be unstable, transport price is integrated with the price of oil, this is probably the most significant variable that has to be considered in the binary options signal map, because transportation has an immediate effect on the price. Needless to say, the price of oil as the main energy creator has a profound effect on the price of services and products world wide. Needless to say, transportation has a significant influence on the binary options trading oil market.

Factors that influence the binary options trading oil market

Geopolitical/Political  turmoil at  major oil producers tends to have an immediate  effect on the price of oil, especially when it comes to members of the Organization of the Petroleum Exporting Countries. OPEK is a good example of oil producing countries that created an organisation that regulates oil policies and stabilize the production of oil. Russia and Norway and Canada are also top oil producing countries , any political unrest in OPEK members countries and  the other countries mentioned previously will have a significant effect on the price of oil.

In General the price of oil is considered to be more or less stable, the production and the demand is growing but the demand is stable and predictable. Usually the lack of stability in the price of oil as a result of lack of political stability/tensions in one or more of the  oil producing countries, extreme weather conditions are all binary options signals that should be considered . Lately the price of oil was very much influenced with the latest conflict between Russia and Ukraine.

 

Weather is also a Binary Signal that needs to be considered when trying to predict the price of oil. Harsh weather conditions like an extremely Cold winter, increase the demand for heating oil. Extremely worm conditions with hot summers, and the non stop use of air conditioning in houses,offices and cars, has an effect  on the demand for oil, high demand is translated to a binary signal that should be considered in the binary options trading market.

Relaying on the data mentioned previously is not enough in order to trade crude oil in the binary options trading market. Binary traders usually relay on specific factors that are influenced from the factors mentioned previously.

Here are the main Signals that influence the Binary Options Trading Oil Market

  • Opek and Russia’s production reports
  • Oil inventories in the major oil consuming countries
  • Natural disasters reports in the oil producing countries
  • Geographical instability in oil producing countries   (countries in the Middle East are considered to be unstable)
  • Economic information about oil consuming countries the have a significant affect on the price of oil  (when the economy shrinks, there is lesser demand for oil because there are less machines,vehicles involved in production of good and services)

 

Expert Binary options traders that can accurately read the binary options signals map are practicing  a binary options strategy that enables them to make a big fortune from the binary options trade. Usually their strategy is to buy Call Options when the price of oil is very low, and on the other hand binary traders predict that the  demand for oil will  be high. On the other hand Binary Traders may buy Put Options when the price of oil is high and traders predict that the demand for oil will drop. Another thing to consider is also to know when the option should expire. Prediction could be right for a given amount of time, and if the prediction of time is not calculated correctly, a trader might lose money.



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