When it comes to trading commodities, volatility is one of the biggest concerns of the traders. Besides, traders must have access to one thousand dollars or above margin. However, after the launch of commodity binary trading options platform, this trend has undergone massive change. Thus, when a trader trades binary options keeping commodities as the main asset, they can make speculations on products like gold, oil, copper and silver among others. As a result, when a trader trades a commodity directly, he/she needs to analyze the extent to which its price shall move. On the other hand, with commodity binary options trading, the trader needs to simply determine the direction in which the price shall move. Here, find a market overview for Binary Options trading of commodities for next week.
Overview for Commodities Trading
The binary options traders can trade the numerous commodities as per their requirements. For instance, traders can opt for energy commodities like oil, gas and coal as well as metals such as iron, steel, copper. Similarly, traders can also engage in the trading of precious metals like silver, gold and platinum and agricultural products like corn, coffee and sugar. Despite performing well last year, commodities have fallen by over twenty percent this year. Besides, the drop in oil prices and the growth of US oil stocks have pulled down the performance of the market further. Given the above scenario, energy is likely to remain the major driver next week.
According to financial experts, the excess U.S. oil stocks should decrease by the end of 2016, resulting in a balanced market in 2017 and improved demand. On the other hand, the Fed’s interest rate hike will come into effect gradually and would therefore not affect the prices of commodities. However, oil is likely to remain in demand next week and gold is likely to go up as well.