Every single day, more oil is traded around the world than any other commodity. The worldwide volume of oil futures means that every second the price is ticking up or down, and oil binary options traders can take advantage of those tiny movements in price and reap big rewards.
Actual oil options trading of futures is something that only a few traders can ever hope to do. Just the price of one futures contract is enough to limit trading to those people who actually might need to take delivery of the oil or only the wealthiest of speculators. Additionally, learning the ins and the outs of oil option trading market and taking the time to do the fundamental analysis can be far too much of a time investment for most people.
But with oil binary options, even traders with smaller bankrolls or casual trading hours can take advantage of the constant movements in the price of oil. A normal oil futures contract usually costs tens of thousands of dollars, something that most people cannot afford. However, it only takes a few dollars to take out an oil trading option and make money from oil trading. This not only allows you to trade on oil for just a few dollars but also limits your overall risk. It’s possible to lose thousands, if not tens of thousands on a bad oil futures deal, but if you are not correct with your oil binary option, you lose no more than your initial, basic investment.
Another advantage of oil options trading is that you can make a much higher percentage return off of a much lower price movement. If the price of oil moves 10 cents over the course of the contract, the trader is not going to make very much of a return, maybe no more than 10 per cent. However, with a binary option you only need to predict if the price will move up or down, not how much. Therefore, if the price moves is as little as one cent in the correct direction when your option expires, you will make a 75% return, or more on your trade. That is the power of leverage that oil binary options trading gives you. And while oil contracts take months to resolve, binary options can be for as short a time as one minute, giving oil option trading experts time to make dozens of trades and reap the rewards of tiny price movements.
Binary options, especially oil binary options were created for the purpose of allowing normal traders to get into the world of commodities trading, and they are the perfect tools for making money off of oil. You will not be successful with your binary oil trades every time, and it takes hard work and long hours to get long-term success, but it is possible for those who dedicate themselves to oil options trading.