Bitcoin has emerged as a new underlying market for binary traders. It is now being offered on the Nadex and IG market platforms. Also, many OTC firms offer Bitcoin binaries. There are two important points that the binary trader should have in mind when trading Bitcoin binaries. First, Bitcoin has great volatility.The result is that out-of-the money buy or sell trades make the most sense. Second, Bitcoin actual prices are not transparent. At Nadex, a new index called TeraBitcoin Index is used to provide the quote stream at Nadex.
At IG, Bitcoin (XBT/USD) quotes are a composite of the price of Bitcoin from several Bitcoin exchanges.But at other binary firms, which offer Bitcoin high-low binaries, it is not at all transparent which Bitcoin exchange is used. For those who trade Bitcoin binaries, there is, however, a major advantage: Bitcoin prices are the least correlated with the other underlying markets and this in theory reduces the total volatility of a return of the total portfolio of the trader.
Using an Economic Calendar as Trading Tool:The economic data calendar should be thought of as a key fundamental analysis and Binary Options Strategy tool. Many sites offer economic calendars and they are easy to access. It is so important that no one should trade without the calendar being reviewed first. Not knowing that an economic data release is scheduled to appear leaves your binary option trade subject to great risk. The economic calendar provides a critical and advanced alert function for the binary option trader. It lists the time of economic data releases.
These releases provide key measures relating to economic performance in countries around the world. The markets pay close attention to these releases and react to any surprises in them. In weeks in which key economic data releases will occur,there is certain to be greater volatility.The binary option trader has two basic approaches relating to trading the economic data releases. The first approach is to view economic data releases asa factor in raising the overall volatility level of the markets during that week.