TRADING LIQUID GOLD AKA CRUDE OIL
Trading with sense and creativity can ensure best results in Binary Options trading. Trading in crude oil is one of the easiest ways to make money trading.
Crude Oil is also known as Liquid Gold. Trading in crude oil could be much easier to see positive results and staying in the money than trading currencies. Why is this? Reading worldwide general news can give you quick ideas about determining the price trend. Whenever there are problems and trouble in oil producing countries, such as Iraq, Libya and Syria, it is likely that prices will rise because the supply is threatened. On the other hand if the economy of countries where oil is vastly consumed, is shaky, then the price of crude oil drops. Crude oil becomes an expensive commodity. More recently vast reserves of oil deposits were discovered in the United States. This as well as other criteria have contributed to a drop in the economic value of oil.
Few historical facts on price
In 1972 war broke out in the Middle East. All the countries which were neighboring the crisis areas, threatened to cut off oil supplies to anyone supporting Israel. Consequently the price of oil shot up. The extent of the price increase back then was 600% in the space of one year.
In 1978 war broke out again. This time it was between Iran and Iraq. The mere threat of a shortage of crude oil and supply again saw a huge increase in the cost of crude oil or liquid gold. If you were a trader then and had invested in crude oil, you would have seen your capital increase by 150%. The price of oil between 1978 and 1980 increased from $40 per barrel to just over $100 per barrel.
More recently, we have seen a very quick tumble in the price of crude oil. In 2011 China started showing signs of strains in its economy. Prior to that, the sheer demand of China has constantly bolstered the price of Crude Oil. The emergence of alternative options of energy to crude oil, the availability of Iranian oil back online, as well as the refusal of OPEC countries led by Saudia Arabia to cut down production, resulted in a glut of supply. It is estimated that the United States is sitting on a storage of half a billion barrels of oil and another 100 million at sea.
The result is very well known. Between 2011 and 2015 the price of crude oil fell from the heady heights of $120 per barrel to the price of $40 per barrel which was the starting price in 1978. Investors who sold oil over the past year will have more than doubled their investment.
How can a trader use this information to profit in binary options trading?
It is now known that crude oil can still be extracted profitably at just $20 per barrel. It is still likely that the price drop that we have seen over the past months is a trend which is not about to change.
Binary Options trading is better known for fast and furious trend trading. However there are several serious brokers who also offer long term trading with options for end of month. Enter in the market at the appropriate low entry price and short it for a longer term.
Recommended Binary Option Brokers who offer long term trading are:
As always, Binary Option Sheriff recommends trading on Demo Account if you are new to binary option trading. Trading can expose you to risk of loosing your capital. However, with informed strategy, binary option trading is one of the easiest and most legitimate manner in making money online.