HSBC Binary Options

As part of our series of articles and guides in which we are taking a look at some of the major banking institutions, and in this one we turn our attention over to HSBC, and see just what their current strengths and weaknesses are. We know many Binary Options trades like to include in their portfolio of weekly trades many different banking institutions in their trades and as such we invite you to have a read through of what we think is likely to happen to the value of shares in HSBC into the short term.

Strengths

Worldwide Operation – There is no getting away from the fact that HSBC are a huge international business and as such they have the size to ride out any storms on the banking world, which they have been doing with some level of success over the last few years, they are slowly getting back on track and unless any other major scandals emerge then it may be plain sailing for HSBC and they should return to profitability over the long term in no time at all.

Seen as a Solid Bank – Due to its sheer size and its huge customer base HSBC unlike many other banks has been seen as a solid bank and one that is not going to be too badly affected by any future financial crisis, unlike many of their competitors who are on something of a cliff edge and any additional problems in the world markets could topple those banks. However, as proven in the past no banking is 100% safe which is something to always remember.

Weaknesses

Under Investigation – It has just been announced that the private banking arm of HSBC is now under investigation in France for alleged wrong doing, and whilst this would in normal circumstances be something of a shock for investors, it does seem to be part and parcel of the current day to day banking news headlines for one bank or another to be under investigation for some form of past wrong doing.

Forex Rigging – HSBC are another of the banking that has been caught up into the Forex rigging scandal that has recently rocked the banking world. Huge fines are now being dished out to bank involved in rigging the Forex rates on an almost daily basis and as such HSBC has set aside hundreds of billions of Pounds to pay those potential fines when levied, which is of course an admission of guilt in anyone’s eyes!

Short Term Prediction

Many traders are not put off placing trades on the value of HSBC shares, even with all of the scandals surrounding the bank, in fact as the share price is only likely to be moving in one way in the very near future, that being downwards in value, should you also wish to place Binary Options trades on a banking institution then do consider HSBC as the volatility in their share price is likely to be quite dramatic in the coming weeks.