How to trade oil profitably using binary options?

Hydrocarbons are one of the most popular and sought-after areas of trading in the field of binary options. Over the past 10 years, demand for oil product assets has increased 5 times. The key feature of oil is the virtual absence of sharp market fluctuations, which allows all traders, without exception, and regardless of experience, to use this direction. Therefore, binary options on oil are one of the most profitable and widespread areas of trading.

Trading options on Brent oil

Options trading is one of the easiest ways to make money on black gold. In this case, traders place bets on an increase or decrease in the value of an asset. This is much easier than trying to make money by purchasing the raw materials themselves and then selling them. Especially for those new to stock trading.

Therefore, the main task of a trader is to predict the price of oil.

Today, most brokers offer their clients WTI and Brent oil. These include the Binarium company.

General analysis of assets on the market

When starting work, many users choose the more affordable and stable American oil (WTI), which is available on the lists of almost all world brokers. However, regardless of the chosen direction, the user must always take into account the increase in demand for products according to the season. A successful trader will quickly identify a pattern in the market and make the right bets, which will allow him to earn large capital in the future and increase his own investments. There are several simple patterns in the field of trading any oil in options:

1. Seasonal growth in fuel consumption affects the pricing policy of oil (the spring season contributes to an increase in traffic on the roads, and the cost of the asset increases accordingly);
2. In the summer, the industry experiences a shortage of fuel oil, which is used to make fluids for air conditioners and others;
3. In winter, asset values ​​increase due to the demand for gas and oil for heating.

By analyzing patterns in the market, the user can choose the most profitable time to buy or sell oil assets. Accordingly, using data from world quotes, you can systematically increase your investments. Many professional traders use oil options as additional seasonal income. However, the direction is relevant at any time, so you can virtually always trade “in profit”.

What “changes” the value of options on Brent oil

Oil is an asset whose value is influenced by a huge number of factors. Therefore, before you start trading options on Brent oil, you need to carefully study all the available factors:

• Oil reserves of different countries.
• Inflation rate.
• Fluctuations in the value of currencies.
• Geopolitical situation in the world.
• Climatic conditions.
• State of the international economy.
• OPEC documents related to the oil production industry.

All the factors described above play a key role if a trader is involved in buying and selling the raw materials themselves. If we are talking about trading options on Brent oil, then first of all we need to pay attention to the following factors:

• Supply and demand. The relationship between supply and demand has a strong influence on oil price fluctuations. It changes when a new supplier of “black gold” appears in the industry, or, conversely, one of the companies disappears.
• Political situation. In this case, we are talking about political decisions of the leadership of countries involved in oil production. Some decisions can greatly affect the price: bring it down or raise it unreasonably high.
• American dollar exchange rate. Since the dollar (US) is one of the key currencies in the world, its exchange rate affects almost any industry, including the oil business.
• Change in oil supply. Supply volumes, which in turn “change” the price of options for Brent oil, are affected by a decrease or increase in investment in this industry.

It is also necessary to take into account the possibility of military operations in the territory where oil production occurs, the relationship between supplying countries and countries that purchase oil (and almost everyone does this), the takeover or merger of oil producing companies, etc. Even loud statements by politicians or business executives oil production may affect the price of options on Brent oil.

Example of a simple oil strategy

Well-known technical analyzers, such as MACD and Alligator, will help you predict the movement of the price of hydrocarbons: In the screenshot you can see that fluctuations in the price of oil are quite predictable, therefore, any changes in its movement will be indicated to you by indicators in this trading tactic.

In addition, very effective methods for forecasting oil prices are the classical patterns of technical analysis: the behavior of quotes at trend levels, with their reaction to trend lines or a breakdown of such lines; graphic figures (pennant and flag, wedge, triangle, head and shoulders, diamond); patterns created by quote candles.

• Whatever method you choose for binary options, applying it on the underlying asset oil will bring you a decent profit!

That is why oil, in options trading, becomes perhaps the most attractive asset in terms of achieving large volumes of profitability at low levels of financial risks.

It is much easier, after all, to get 70% of the income on the transaction amount with a binary option than by trading futures on specialized exchange platforms. Options traders, when trading on oil quotes, can increase their capital daily by more than 300%!

Start making money on oil ⇢.

• 13 January 2021, 17:54
• Sergey

This is my first post. His inspiration is the author of the article: https://smart-lab.ru/blog/515798.php I am not a long-lived trader. And not a guru. Yes, amateur. I opened a separate account exclusively for options in February 2021. April 9 and December 25 last year passed quietly. Let's chalk it up to chance. But I had an unpleasant moment in December with options on BR. Or he me. I didn’t sell options on Brent until the end of November. For these purposes I have RTS. He made his pennies from oil by buying aircraft. Options on the December contract have expired. I open the following ones and am amazed at the volatility: 50+. I understand that it’s somehow not “feng shui” to trade with such an ox. I think to hell with this OPEC, we need to sell options at least a little, for the sake of experience. In order not to sit in front of the computer, I place stop orders on futures: in the event of a sharp movement in the price of BA in my absence, the delta will be near zero. December 7th arrives. At 18:30 I check all positions. I calmly turn off the computer and go about my business. I return late in the evening. I open the terminal. And I see a miracle, a miracle: a hairpin that amazes the imagination. My feet are gone. I go down to the 1 minute TM and understand that this whole thing happened in 1 minute (it turned out to be 1 second). And then the price moved in the opposite direction from the stops. More details here: https://smart-lab.ru/blog/509980.php Briefly: when the evening session opens, the price jumps by 3.4% in 1 second! I cut futures. Loss 2% of the account. Small, but very unpleasant. (If I opened it not for experience, but as the “religion of risk management” allows, I would have received around minus 20%). I look at all available platforms, including “kitchen” Forex. And emotions go even higher: this hairpin is nowhere to be found!!! Starts to shake. Thoughts in my head: “And after this I hear that “Forex is a scam”!? Yes, in such cases (when only one office has a hairpin), all transactions are canceled: both positive and negative! And then who will answer? Everything is “legal” here! You must first write to the stock exchange, then to the prosecutor’s office, the Central Bank, the Investigative Committee, so that the troublemaker is punished!” In order to somehow fall asleep, I uttered all the epithets into the recorder. I decided that in a couple of days I would decide without emotion what to do next. I decided without emotion: Firstly, the losses are not great. Did you want experience? Receive it, sign it! Yes, it’s a shame that this is absolutely not a market situation. It’s a shame even more than when there were big losses. But we are not in kindergarten! Secondly, if you sell options on Brandyatyn, then either act without “insurance” or write a robot to place orders 5-10 minutes after the start of trading. I chose a robot because... After monitoring BR, I noticed repeated jumps (although not as large) after the start of the evening session. I started learning Lua. Conclusions for “beginners”: 1. If you are trading an “unknown” instrument or a new “design/idea”: first do it as little as possible. Ideally: ONE contract. 2. If you sell BR options and make sure that delta = 0, then work without hedging stops. It’s better to look at the terminal more often if you’ve already decided to do this. ★4

Oil is the most important type of energy carrier and, like other commodities, is considered an ideal underlying asset for binary options trading. The oil market is characterized by fairly high volatility, which makes it possible to profitably invest in binary options for oil

. However, to successfully trade oil assets, it is important for a trader to understand the specifics of trading and understand the key points that have a serious impact on quotes.

[my_custom_ad_shortcode4]

Example of options trading on Brent oil

Many traders use so-called economic calendars to trade oil. These online resources collect information about the volume of raw materials. If there are plenty of reserves of “black gold”, then the cost of oil will begin to decline, and in cases where reserves begin to quickly deplete, the demand for this resource will increase, and with it its cost.

Market schedule

Since the binary options market offers trading of several underlying assets at once, it does not have a single opening time. This is because different assets (such as commodities and currencies) are traded at different times.

Rating of the best platforms for trading binary options:

• Binarium

  1 place! Binarium is the best binary options broker for 2020! Great for beginners - they provide free training with a demo account! Get your registration bonus:

  Registration

Trading options with the broker Binarium

The Binarium company, like most brokers, offers its clients trading options on Brent oil. To make money on “black gold”, you need to create a personal account. The registration process is simplified to a minimum and does not take much time. You can register for Binarium using the form on our website:

1. Enter your email address.
2. Create a password.
3. Select your account currency.

Please note that your email address must be valid, as an email will be sent to it to activate your account.

Timing to Trade

What is a guarantee of success in the binary options market? There are quite a lot of factors here. This includes choosing the type of binary option, strategy, and your principles of deposit management. However, there is another interesting parameter that is often forgotten, namely the timing of trading.

It would seem that it makes no difference what time to trade, because the market works almost around the clock, and a transaction can be made at any time, whenever you want. However, in practice one can see that the timing of trading is very important. And the most experienced traders pay sufficient attention to this point.

What is this connected with?

Binary Options Trading - Across the Street from Wall Street

Every normal person would love the idea of ​​making money on the shares of the world's leading companies, stock indices or commodities. Those who are interested in binary options have questions:

• How to trade options?
• Where to start?
• What step should you take first?
• How not to make mistakes due to inexperience?

An important factor and obstacle to starting to make money is the fear of failure. But when a person has a clear plan and understanding, fear goes away, because now you know the answers to all the questions.

Binary options trading

First, you should know that even experienced investors make bad trades.

It is not possible to always make successful investments, but you are quite capable of reducing the number of losing trades to a minimum.

To get started, you need initial capital. The minimum deposits for all brokers are from $200-250. In order to start successfully, I advise you not to focus on minimum deposits, but to take care of yourself as best as possible.

The minimum investment starts from $25. I recommend investing no more than 5% of your capital. This means your initial deposit should be around $500 . This will give you good material reserves and psychological protection.

General rules for scheduling

Despite the complex operating schedule of the binary options market, we can highlight the basic principles of its activity.

As a rule, the market is closed on weekends: Saturday and Sunday. The vast majority of currencies, indices and commodities are not available for trading at this time. This is due to the fact that traders, in general, are people too. And they, like everyone else, need to rest. Having a weekend means taking advantage of the opportunity to set yourself up for the most fruitful work.

In most cases, the trading session begins at Greenwich Mean Time, that is, +3 to Moscow time. With the cancellation of the transition to winter time, it has become much easier for traders to calculate, since the difference no longer changes throughout the year, which is very convenient.