Forex Autotrading

HF Social

Receive New Content In Your E-mail

Trading Signals

Trading signals with Forexsignal
24Option-Regulated binary options broker

Pair options with OptionTrade

Usually the traders are concentrated in operate within a specific market type with brokers which in turn are specialized in these markets. For example, if we want to buy or sell oil, we must trade with a broker dedicated to raw materials, but if we want to speculate on currencies, we must resort to a Forex broker for example. Originally, these brokers did not overlap as each of these financial assets are traded in different markets and in many instances these brokers are not licensed and / or lack of regulatory requirements.

However, with the passage of time these brokers have specialized and now offer a variety of services. For example, most Forex brokers also offer the possibility of trading with precious metals, contracts for difference and some even with binary options. In this way, the trader can access multiple markets from a single trading platform.

Markets have also evolved with investors and brokers. Now, we can see a cross between different markets and although we can access these markets from the same broker, each trade is an individual transaction, with its own rules and requirements according to the market.

For years, traders have traded with a single broker in several markets but through individual operations. In other words, if an investor wanted to speculate on the price action of Euro against gold, had to perform an operation on gold (with its risks and costs) and another in the euro, as well as a single transaction, so in fact the trader had to open two positions with double exposure.

This was the start of a form of trading called "cross-market" and initially was complex and risky, but the rewards were high and the trader could make successful trades based on their knowledge of independent markets.

How developed cross-market assets trades on binary options?

With the development and growth of binary options market, thanks to its simplicity, low cost and low risk, traders said they were interested in operating the euro and gold simultaneously from the same platform. In this case, many traders wanted the ability to perform two simultaneous trades as required in the cross-market trading, however as yet binary options do not offer the same possibilities for electronic transactions (at least not yet) compared to other financial instruments such as Forex, it is difficult to open two positions simultaneously, especially in markets with high volatility. By means of electronic trading, the trader can create trading orders to be executed at certain price levels for example.
After much testing and analysis, thw binary options broker OptionTrade was able to develop the binary options trading based on cross-market assets, which allow to open and enjoy the benefits of two operations based on two financial assets over which the trader wants to speculate in a single transaction.
In this case, OptionTrade provides a simple platform which is very easy to use to trade cross-asset based options. The trader simply has to use a drop-down menu in the trading platform and select the pair with which to trade. For example, suppose we want to operate based on Google against Facebook, because we believe that soon Google will make an important announcement that may cause a sharp increase in the value of their shares. Through the platform the trader select Google vs Facebook and determine if both actions will move in the same direction and closer or else they will move away from each other, after which the trader opens the position. With this, we have a risk factor with a single exposure.
We can perform similar trades combining gold with the U.S. dollar or the CAC 40 in France and the DAX 30 in Germany.
The trading platform of iOption allows to monitor the progress of the price of the two cross-asset in a single chart so that the trader can verify how is performing an asset compared to the other. Also, this application shows the potential gain if the operation is successful, which can reach 85%.
The platform also includes historical charts of different pairs of financial assets offered by iOption. Thus, it is possible to verify how these instruments have performed against each other over time.

The cross markets are available all the time?

It is important to remember that these assets are available only when their markets are open, therefore Facebook or Google are active only during the hours in which the U.S. Market is open.
Furthermore, not all financial assets move quickly and in the case of binary options we need very active markets with high liquidity and volume which move up and down quickly, as option trading are limited by time, ie that binary options should be profitable in a specific time period.
This means that if Apple and Google have little volume and movement, then both actions may have little overall movement and the trader wil  surely end up losing their investment when the operation expires.

100% Bonus from the Forex broker HotForex

Leave a Reply




two × 4 =