- Trading at AlphaBinary
- Learn Binary Options
- What to Trade
- About AlphaBinary
Welcome: - Balance: - Account Number:
Trading currencies require traders to adapt to the degree of volatility of its market as binary options trading is more focused on asset price movements. The global currency rate is highly influenced by economic factors such as inflation, political stability and fundamentals. Traders are recommended to learn the nuts and bolts of trading currencies to successfully pave their way into the binary options market.
A currency asset is normally traded as currency pairs whereby one country’s currency value is compared to another country’s currency value. The ‘base and quote’ currencies are the two basic terms that most traders need to get acquainted with. The first derivative of the currency pair is known as the base currency while the next derivative to the currency pair is called the quote currency.
AlphaBinary provides a wide selection of over 55 currency relationships comprising of the EUR/USD, GBP/JPY, USD/JPY, and USD/GBP and so on. For instance, on binary options platforms, the United States dollar is represented by USD while the United Kingdom’s national currency, the pound sterling is denoted as GBP. For every set of currencies, there is a specific range of time period that traders are expected to choose from, normally as from 30 seconds up to months and years. As traders become more familiar with the asset market and the basics of currency trading, they are ready to go to the next level.
Currency trading is normally affected as a country’s interest rate rises or falls to that of another country. Thus, the currency associated with a lower interest rate loses value while the one with the higher interest rate will take over so as to benefit from huge returns. Also, there is an increase in demand for the most valuable currency, its rate shall eventually rise compared to other worldwide currencies.
Market speculation often plays a crucial role in currency movement and global exchange rates. For instance, if a market forecasts that a particular currency value shall rise shortly, it may spark much agitation, forcing investors to buy more on the asset. The currency value is then bound to increase. On the other side, if the currency value is expected to plunge, investors shall sell more of the asset, generating a significant loss in its value.
A country’s political stability is directly related to its currency value. The more politically firm a country is, the more stable shall be its currency. For instance, let have a look to the case of Greece. The Euro has gone through much fluctuations due the country’s bailout program episode. Also, by being a member of the Eurozone, this situation has disrupted every country that used the Euro.
Firstly, traders must login to their AlphaBinary account. In case they do have one yet, traders can open an account with us. They are also encouraged to make their trading account fully compliant by submitting all required compliance documents in order to start transacting with AlphaBinary.
To trade currencies carries a significant level of risk and thus may be unsuitable for a category of traders. It is important for traders to carefully choose an asset according to their trading objectives and level of experience in the particular asset trading. Thus, it is recommended to start with a liquid currency like the dollar or euro. Also, traders must bear in mind that they should only invest what they can afford to lose.
Online currency trading is certainly not that easy. It requires traders to make use of maximum educational tools provided by AlphaBinary and much practice to be able to effectively master this type of trading.