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.