The global market had a rough day on Friday, and for good reason. The British people voted the leave the European Union. This caused panic with regard to both economic and market conditions. After all, the UK and Europe are two of the world's largest economies. Nonetheless, as binary options traders, we have the opportunity to capitalize on downward movement in the market. Today, we'll talk about key assets that you should be watching and how to trade them to take advantage of the trends.
Key Assets To Focus On
Gold – Gold is considered to be a safe haven investment. This means that when global economic and market conditions are called into question, investors tend to look to gold as a way to keep their money safe. As a result, safe haven demand causes gold's price to skyrocket. Considering current economic and market concerns, we can expect to see big gains moving forward. So, binary options traders should be watching for strong call option opportunities surrounding the precious metal.
Silver – Silver is another safe haven investment. Therefore, the precious metal follows the same principles as gold does. As a result, silver is likely to see big gains moving forward. So, binary options traders should watch for strong call option opportunities here as well.
Oil – Oil, like any other commodity is heavily dependent on the law of supply and demand. Therefore, it is also swayed in a big way by economic conditions. When economic conditions are negative, consumers look for ways to spend less money. One of the first ways they do so is by reducing their reliance on oil. They drive less, bring the temperature of their homes up or down a few degrees, and pay attention to turning light switches off. As a result, demand for oil falls, leading to declines in value. Considering current economic concerns, oil's price is falling dramatically, and will likely continue downward. So, binary options traders should be watching for strong put option opportunities here.
Dow Jones Industrial Average – Due to global trade, economic concerns in the UK and Europe lead to economic concerns around the world. Naturally, economic concerns tend to lead to declines in the market. This has already hit the Dow Jones Industrial Average hard, and will likely continue to lead to declines. As a result, binary options traders should be looking for strong put option opportunities here.
EUR And GBP Currency Pairs – Considering that the Brexit was the reason for the Panic, we're likely to see big movement surrounding EUR and GBP currency pairs. Both of these currencies are set for declines moving forward. So, when trading these currency pairs, if the EUR or GBP is in front, put options are likely in order. If the EUR or GBP is in the back of the currency pair, chances are that call options will lead to profits.
Disney – Finally, there are few companies on the planet that are as vulnerable to economic concerns as Disney. The company is the world's largest entertainment conglomerate. When economic conditions are poor, people spend less money on entertainment, leading to big declines for stocks like Disney. So, binary options traders should be watching the stock for strong put option opportunities.
What Do You Think?
What will you be trading post Brexit? Join the discussion in the comments below!
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