Gold is considered as the most widely used commodity for international trade in current times. There are various reasons behind the selection of gold. In futures trading, selection can be done at little cost; no commission charges and trading can also be done with leverage. Also, internet based platforms are quite simple and easy. Similarly, gold binary options trading is the latest way to trade gold from an international platform and make a profit by indicating the gold price change up or down.
Binary gold trading is no different from any other binary trading done in other assets or commodities. The trader has to identify the gold price change at a predetermined time and in case of correct identification the trader is entitled to make the profit. In the event of a failure, the trader is likely to get nothing or only a 15% refund on the value of the investment. It is the reason binary trading is called binary because of the two possible outcomes. All binary options traders are well aware of these conditions before entering binary gold trading.
Many binary options brokers offer gold as the main product to participate in binary options trading. Unlike futures trading, gold binary trading is a bit easy and simple to understand. In futures trading, the trader has to buy the gold at the going price and wait for changes to occur. In binary trading, the trader has to predict the price of gold in a certain period of time instead of buying it. The trader can set specific conditions in gold binary options trading that are not possible in traditional futures trading. For example, when a trader thinks that gold will not set a likely trend in the commodity market with a strong controlling position, it becomes impossible to profit in such a market condition. However, by trading double binary options without touching gold, a trader can predict that the price of gold will not reach the identified value up or down within the specified trading period. If it turns out to be correct, the trader earns a good sum of money on his gold investment. Therefore, binary options gold trading is a very hot trade in today’s world due to the fixed risk and high rate of return.