It’s just after 9:00 pm EST Wednesday night at the time of this writing, and the economic calendar shows a lot of activity going into Thursday. The Australian Employment report was released earlier tonight, and the Bank of Japan is scheduled to release a monetary statement before the session is closed. Then, in Europe, the Swiss National Bank will release its monetary statement; the EU’s CPI’s reading will be out later in the morning, which is a primary economic release; and the Bank of England will end the busy European schedule with its own decision on monetary policy.
Following the busy overseas markets, the United States has scheduled the release of key economic figures such as weekly jobless claims, housing starts, building permits, Philadelphia Fed, and JOLTS.
During economic releases, the currency markets usually become very active; and with Nadex, there is a binary option for all of these markets. In the Asian markets, if you had wanted to trade the Australian Employment report, then you could have chosen between the two AUD (Australian dollar) pairs. If you would rather trade the Bank of Japan’s statement, four JPY pairs are offered (Japanese yen).
If Europe is your preferred market and you were watching the CPI, then you may choose one of the three EUR pairs (euro); or if the Bank of England interests you, then perhaps you would find one of the three GBP (Great Britain pound) pairs suitable.
Finally, if you are wanting to trade the reports from the United States, six crosses with the U.S. dollar (USD) are available.
These options give traders in any time zone and with any work schedule the opportunity to participate in the currency markets worldwide. Let’s look at a quick example, keeping in mind that this is not intended as a trade recommendation, just as an illustration. If you were specifically interested in the Bank of Japan announcement, you would have four pairs from which to choose.
While these underlying forex markets trade 24/5, some pairs may be quieter at different times. For example, during off hours in the United States, the USD/JPY may not be the most active pair; the same goes for GBP and EUR, as the Bank of Japan’s statement should come out before the European calendar opens.
However, since Australia has already had a major report tonight, the AUD is more active than usual, so the AUD/JPY could be a great market to pair against the JPY.
The binary option table above shows several available options for the AUD/JPY that will expire at 3:00 a.m. EST. Other expiration time-frames are available as well.
One good thing is that these options have a $100 base value and your limited risk is defined when you enter a trade. So if you buy an option for $50, then your risk would be the purchase price, or $50 in this example. If you sell an option the risk would be the difference between the sale price and the $100 value. Therefore, if you sell an option for $60, the risk is $40. Give this, these options could be an ideal alternative when trading news reports.
Trading forex currency pairs with binary options allows traders a wide variety of trading choices around the clock. Binaries are also available on a multiple other instruments and timeframes, giving traders a great deal of flexibility to trade according to their unique viewpoints, goals and schedules.
Note: Exchange fees not included in calculations.