Many binary options traders prefer to trade commodities due to their more volatile nature. This, of course, tends to make predicting the short-term price fluctuations. The problem is trying to find the best ones to work with. Some of the most popular commodities for binary options traders are commodities the majority of the world demands on almost a daily basis.
Which Commodities Should You Trade?
With thousands of commodities to choose from, it may feel overwhelming knowing where to start. You have options ranging from cattle to precious metals and everything in between. However, some prices don’t tend to vary as much as others, making it difficult to correctly predict rising or falling values. Others are much more volatile, such as these ten:
- Crude oil
Though there are only a few precious metals on this list, you may also want to consider other popular metals such as nickel and aluminum. Various types of crops are also very popular depending on current growing conditions and worldwide demand.
Why Choose These Ten?
These are all popular commodities for a very good reason – they’re all in high demand throughout the year. Crude oil tops the list since the demand for crude oil and its derivatives is always high. It’s easy to predict prices based on various holidays, natural disasters, economic and political issues and analyst predictions for consumer pricing. It fluctuates often, providing more profitable opportunities if you study the market.
Copper is being used more frequently than ever, increasing demand. Gold and silver are also always high in demand. Once again, economic and political issues are good indicators of demand and possible fluctuations.
Agricultural commodities tend to be popular during the growing season. Oats, soybeans, corn and wheat are used in a wide variety of products, making them some of the most popular. Since crops are volatile, it’s easy to tell when prices will vary based on weather conditions, demand and consumer pricing.
With the entire world demanding most of the commodities on this list, you’ll see much clearer indicators of growth or decline. The key is to pay careful attention to the trends surrounding each commodity. Ideally, start with several commodities in the same vein, such as agriculture or precious metals only. This makes it easier to learn to recognize specific trends for several commodities at once. While indicators may be similar, different factors play into the fluctuating values. Start small and you’ll quickly learn which commodities are the best for your needs.