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Trading EUR/USD

Binary options enable trading on all the financial markets without any specific knowledge and allow the possibility of generating major profits in only a few minutes. Among the most popular assets currently traded, the EUR/USD currency pair is highly appreciated by binary options traders because of the great range of opportunities for speculating on a rise as well as a fall. Therefore, here you will find information which will explain its advantages and help you to speculate on this asset at the right time.

 

What is the EUR/USD currency pair?

The EUR/USD is the market name for the Euro/Dollar currency pair. In fact, it indicates the value in dollars of one euro.  

This exchange rate given by the EUR/USD corresponds to the world’s most traded currency pair; this guarantees very strong movements and a high volatility due to the fact that numerous investors trade it throughout the world. 

It is in fact the difference between the purchase volume and the sale volume of this parity that determines the price. This quotation is realized on the Forex otherwise known as the foreign exchange market.

 

The advantages of trading the EUR/USD currency pair with binary options

Although it is possible to trade this currency pair directly on the foreign exchange market, the use of binary options offers many advantages, here follow the major ones: 

  • Firstly, with binary options, EUR/USD trading is much less risky since you know in advance the possible amount of your profits and possible losses.
  • In addition, the benefits are higher than if one trades the EUR/USD in the traditional manner. It is in fact possible to gain 85% on an investment in only a few minutes whereas this same profit percentage would take months on the traditional Forex.
  • Finally, as the announcement effects are very strongly influential on binary options, this currency pair is ideal as each week the publication of major news and events make it possible to speculate on the rise or fall of the value.

 

How to trade EUR/USD with binary options

When trading any asset using binary options, it is first necessary to spot the best moments, that is to say, the moments when the volatility is strongest, which increases the chances of seeing your prediction come to fruition. However, generally, these moments are those following important economic publications. With regard to the EUR/USD, the impacting publications are many and frequent. These can include:

  • An announcement from the FDE or ECB concerning an economic policy change or a possible intervention of these central banks on the Forex which often have the objective of artificially decreasing the currency value to make it more competitive.
  • The rating agencies announcements are also closely monitored by Forex investors who have more confidence in the currencies considered as safe for their investments.  A lowering in the rating will therefore cause a drop in the currency value concerned.
  • The economic results of the United States and the Euro zone also influence the EUR/USD value. Here, the data relative to the industry or the general production is favoured, but also the GDP of each of these zones has an influence.
  • Lastly, the bond issues and more generally the interest rates on these bonds are a way of sensing the traders’ feelings of security concerning each issuing country or zone. In this way, the higher the interest rate, the more the currency concerned will lose its value and the opposite is true when this rate falls.

 

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