Royal Bank of Scotland Binary Options

You can instantly be put offer placing trades on the Royal Bank of Scotland, for there share price has been and continually seems to be hammered by the sheer size of the bank and many previously made very bad decisions in regards to other banks they bought out, and of course some irregular practices which they are still being fined for and are still have to compensate their customers for.

Strengths

Huge UK Government Stake – Having been saved from going bust by the UK Government, it is safe to say at the current moment in time any problems that may occur that may put them at further risk of losses will be covered by the UK tax payer, however they are looking to sell of the large amount of shares the Government owns in the Royal Bank of Scotland, and when such a time arrives that they do this the share price is sure to take a hit again.

Recovering Lost Ground – The Royal Bank of Scotland are slowly but surely recovering a lot of the ground lost when the banking crisis hit and whilst this is going to take some time it is expected the bank will eventually return to continuous profit and get its books balanced once and for all.

Weaknesses

Loss of Customer Confidence – The fact that the Royal Bank of Scotland did need bailing out shocked a lot of their most loyal customers, and a huge proportion of the people who had shares in this bank made a huge loss, and as such long term confidence in the bank has been badly affected with investors steering well clear of their share at the moment.

Low Business Lending – Despite calls and demands by the UK Government to lend more money to businesses this is something that the Royal Bank of Scotland has been shying away from, they do need to restart their lending to business on a much larger scale if they are to start making profits from the usual banking business and not concentrating on weird and exotic financial investments which did get them in a lot of trouble not that long ago.

Short Term Prediction

With the Royal Bank of Scotland being forced to pay billions of Pounds in fines and compensation and the fact they are having to cut back on their banking businesses, the short term profitability of this large banking institutions is not looking as good as some other banks, and the share price of RBS is nowhere near as good as it was not too many years ago and it is constantly going on a roller coaster ride as the powers that be try to restructure the bank.

You need to think quite hard in regards to the way the share price is likely to move should you be thinking of placing Binary Options trades on the Royal Bank of Scotland any time soon for they do not have the predictability of many other banking institutions and a trade on the wrong side will cost you dear.