FTSE 100 Binary Options Strategy

The FTSE 100 index is representative of 100 major British companies which can be found within the London Stock Exchange. This index consists of a variety of organizations which represent different sectors of the marketplace. The index happens to be collectively held by the Financial Times along with the London Stock Exchange, with management being the responsibility of the FTSE Group (hence the name). The FTSE 100 binary options strategy is based on the ability to recognize the fundamental factors which impact the value of this index. These include variable such as:

UK Earnings Reports

Politics within the Euro Zone

Economic News Releases including: Interest rates, Manufacturing data, GDP reports, Inflation data, Housing Data

The Euro Zone happens to be the most significant trading partner for the United Kingdom, which decided not to be included within the EU. As such, the unfavorable economic circumstances within the Euro Zone greatly increase the chances that FTSE 100 traders, binary options or otherwise, are going to be impacted. The operation of the FTSE 100 is tightly connected with the operation of the EU marketplace. This is a fact that all traders and investors must remain mindful of.

Analysis For the FTSE 100 Index

In combination with trading the FTSE 100 based on market sentiment, technical analysis is also necessary. Binary options traders may want to make use of chart, graphs, candlesticks, and more for forecasting price movement for this index. There are now a number of brokers which offer a variety of analysis tools, but they can also be located at various places online. Some charting tools are provided for a fee, while others are offered free of charge.

Trading the FTSE 100 Index

Because this index is one of the majors, relevant information and data is going to be easy to locate. Both historical and current price information may be available within your binary options broker platform, and will certainly be available from various financial data sources. Accessing this information should be your first step, as it will give you an overall view of whether the value of this index has been in the past, along with where it currently is.

The basic FTSE 100 binary options strategy calls for the use of simple Put/Call trades. This can be altered, dependent upon which fundamental data you are basing your trade on. Even so, most data is going to clearly point you in the direction of either Put or Call, so long as you’ve ten the time to perform analysis.

Option Builder may also be used to trade the FTSE 100 and may be the best type of binary options trade when you need to control the expiry time. The direction you wish to take with the FTSE 100 may not be completely clear-cut due to the fact that market hours are exactly the same as that of Euro Zone markets. More often than not, you’re going to have to create a plan for processing UK news releases, determining the market effect of the information, and then setting the correct expiry time period.

Traders absolutely must be able to access historic price data if FTSE 100 trades are going to be centered on earnings reports. These reports are only released quarterly, but many traders profit from the information they provide. Other opportunities may be presented whenever mergers and acquisitions are carried out. This merging of companies is typically viewed in a positive manner and can provide a boost to the FTSE 100.

Keep support and resistance levels in mind when trading with this index. The FTSE 100 offers comparatively low volatility levels when compared with Japanese and American markets. The means that you should be able to enter into binary options using this index and experience more foreseeable outcomes. Even so, trading with the FTSE 100 is not always easy. Some time and a commitment to analysis will render this strategy even more effective.


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