In this guide we are going to highlight a few signals that the price of any Binary Option may be about to move in one direction of another. There are many individual and unique factors that can cause movements in commodity, share and stock prices as well as currencies and as such you do need to be forewarned and forearmed in regards to what can cause the prices to move.

Actually spotting a trending market is what separates the best Binary Options traders from all others and whilst it can often be hit or miss when it comes to most traders making a winning trade by knowing what to look out for and being prepared to take some time and effort doing your research and keeping your finger on the pulse of the trading environments then you too can pick up the necessary skills to become a profitable Binary Options trader!

Currency Volatilities

Let us first take a look at some potential signals that you should be on the lookout in regards to what can and will make currencies move in one direction or another.

  • Civil Unrest - The quickest way that any one countries currency is going to move downwards in value at an alarming rate of knots is when there is some form of civil unrest, and the longer the unrest goes on the lower the currency of that particular country can sink, so always be on the lookout for countries going through any kind of change for whenever the citizens of that country revolt the currency of that country will get lower and lower!
  • Political Changes – Whenever there is an impending election in any democratic country the value of the currency is going to move, however it is not always a case that the currency will move downwards in value for political change can often stabilize the country’s finances and the currency may just swing upwards in value!
  • Seasonal Changes – Many countries of the world are subject to season changes, for example many holiday destinations will see their respective currencies flourish during the Summer months whilst the opposite is true during the off season Winter months so do keep that in mind when pairing currency options together!

Stocks and Share Price Movements

The price of stocks and shares can always be relied on to move upwards or downwards in value throughout each trading period. However there are many reasons that will force a share price to move and below are some of the signals that you need to look out for.

  • Profit Warnings – After a particularly bad trading period you will often find the share price of some companies will diminish quite rapidly, this is particularly true of shops and store based companies, so always be on the lookout for those companies who are seeing a downturn in business during for example the Christmas period.
  • Share Dividends – The share dividend announcements are always going to have a knock on effect on a company’s share prices, and by keep track of just how well or just how bad any company has been performing in between the times they declare their respective share dividends you can often make an informed guess on just what is going to be announced and whether their share price will ultimately rise or fall after the share dividend has been announced!
  • Management Changes – Any company that has any major changes to their management team is going to see their share price moving in one direction or another, whether the new team taking over is going to have a major positive or negative effect will always remain to be seen, however do check out the profile and previous roles of any new members of a company’s management team as that would give you something to base your decisions on whether to Put or Call on that companies share price Binary Options.

Commodity Price Fluctuations

One final Binary Option category that is always going to move in value are commodities, and below we take a look at some reasons why Gold, Oil, Copper and Silver can and will move in value one way or the other!

  • Trade Wars – When two companies start battling out in regards o the price of their goods in stores this is always going to result in those companies share prices dropping, however when two countries also get involved in a trade war then the price of commodities such as Gold then to rise quite noticeably as traders tend to view those commodities as a safe haven in times of trouble, so do look out for any looming trade wars and base your Binary Option decisions accordingly!
  • New Minefield Discovers – Whilst we rarely see any major new minefield discoveries these days it is always worth keeping your ear to the ground for is there are any new Oil reserves discovered for example then the additional output from those minefields are going to drive down the cost of Oil based Binary Options. The same is also true of every other commodity, so whilst rare is you do get wind of a new commodity based discovery then make sure you place your Binary Options trades accordingly to try and make a winning trade on those respective commodities!
  • Currency Volatility – The one commodity that is always going to benefit whenever the world of currencies starts to become volatile is Gold, many investors tend to panic at the first sign of any movement of currencies and they tend to then invest quite heavily of commodities such as Gold but also Silver.

With the advent of Bitcoin we are also seeing a lot of investors linking their currency reserves to the value of Bitcoin and as such this can often have the effect of altering the price of Gold and Silver one way or another. Being able to spot the signals of a trending commodity price increase or decrease is never easy but when you do aquaria that magical sixth sense then the profits will always be there for the taking when trading Binary Options!