Posts Tagged ‘binary option’

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Stock Market In Review

Friday, December 4th, 2009

Use Fox Business Week in Review for Binary Option Strategy

Monday

Black Friday came and went, and though there were hopes for a comeback in the retail sector, consumers spent less per person on the notoriously busy sales day.  And who could blame them with unemployment high and credit hard to come by?  While consumers came out in large numbers on Black Friday, they mostly went for the best bargains and walked away, according to the National Retail Federation. 

General Electric (GE: 16.19, 0.18, 1.12%) and Vivendi reportedly drafted a deal Monday on their NBC Universal stake, beginning a week full of news surrounding the media company’s future.  Sources told the Wall Street Journal that GE plans to buy Vivendi’s 20% stake for $5.8 billion, a move that would bring GE one step closer to giving control over NBC Universal to Comcast (CMCSA: 16.15, 0.24, 1.51%).

Tuesday

General Motors mad a surprise announcement Tuesday that CEO Fritz Henderson is stepping down from his position.  Though he only held the spot for nine months, GM Chairman Ed Whitacre said he is taking over as interim CEO immediately, while the company searches for a replacement.

Google (GOOG: 584.45, -1.29, -0.22%) will allow publishers who charge for content to set a limit on how many articles online readers can view for free through the search engine, the company announced Tuesday.  Publishers will be able to limit readers to five free articles per day.  This comes as media companies have complained that Google is making billions in profit by publishing free content that the media companies produced, while they struggle with dwindling ad revenue.

 

Wednesday

TARP Repayment Dept.: Bank of America (BAC: 16.22, 0.46, 2.92%) said it plans to pay back the $45 billion in loans the government provided through the Troubled Asset Relief Program during the financial crisis.  The bank will use $26.2 billion in excess liquidity and sell securities for another $18.8 billion to come up with the cash for the transaction.

In other BofA news, at least two candidates for the bank’s CEO position reportedly suggested breaking up the company to the board of directors.  However, the board rejected the idea, making it even more difficult for the company to find a successor for retiring CEO Ken Lewis.

Thursday

General Electric and Comcast announced a deal that will let GE unload NBC Universal to the cable company in a $30 billion deal.  This comes after Vivendi agreed to sell its NBC Universal stake to GE for $5.8 billion.  This will allow GE to exit the media business.

Meanwhile, FOX Business Network’s Liz Claman had the opportunity to interview Treasury Secretary Tim Geithner Thursday.  Geithner told FBN taxpayers will earn over $2 billion in profit from interest on the money the government lent to Bank of America through TARP, as the bank is set to pay back the loan.  He added that the government stands to profit from many of these rescue deals made to struggling financial institutions.

Questioned on the idea of a stock trade tax, Geithner told Claman that he does not support such a tax, saying “I don’t think that specific thing is the way to go.”

 

Friday

Unemployment fell back down to 10%, according to the Labor Department, as the nation lost only 11,000 jobs in November.  This was the smallest loss we’ve had since the recession started in December of 2007 and was much better than the 130,000 jobs economists forecasted would be lost.

In light of GM’s CEO Fritz Henderson stepping down, interim CEO Ed Whitacre announced several management changes at the auto maker Friday.  Mark Reuss was named president of GM North America.  Reporting to him will be Susan Docherty, who is taking the VP of Vehicle Sales spot.  Meanwhile, Bob Lutz, a former executive from Ford, will remain vice chairman of GM.

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Posted in Binary Betting Strategy | 1 Comment »

Dollar Gains Trade Binary Option

Friday, December 4th, 2009

According to the Wall Street Journal the dollar is gaining. Start trading on the dollar now.

TORONTO (Dow Jones)–The dollar extended its gains across the board Friday afternoon as rival currencies capitulated to the greenback’s show of strength on expectations U.S. interest rates could rise earlier than previously thought.

The dollar’s renewed rally took it to its biggest single-session advance on the yen so far this year, up 2.8% on the day. It hit a one-month peak versus the yen and its highest level in two weeks against the euro.

The Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, also hit a one-month high, up 1.7% since late Thursday.

The afternoon push was an extension of earlier U.S. dollar buying rather than a response to any new developments, traders said. A better-than-expected U.S. employment report for November had incited the dollar rally, as it raised expectations the Federal Reserve would be able to hike rates sooner than once believed.

“The dollar’s just been bid, bid, bid,” said Steve Butler, director of foreign exchange at Scotia Capital in Toronto. “There’s been no pullback, so the market’s finally giving up,” he said.

Friday afternoon, the euro was at $1.4828 from $1.5075 late Thursday, according to EBS via CQG. The dollar was at Y90.70 from Y88.22, while the euro was at Y134.47 from Y132.96. The U.K. pound was at $1.6428 from $1.6561. The dollar was at CHF1.0186 from CHF0.9999.

The Dollar Index was at 75.904 from 74.629.

The dollar gained broadly Friday, not only taking the wind from the euro and yen, but also from high-flying risk-positive currencies, such as the Australian and New Zealand dollars.

Even the Canadian dollar succumbed to U.S. dollar strength and slipped into negative territory in afternoon trading after rallying on Canada’s own robust job gains in the morning. The U.S. dollar was at C$1.0591 in afternoon trading from C$1.0537 late Thursday.

In the U.S., economists had expected November job losses of 125,000, but the data came in much better, with the U.S. labor market having lost only 11,000 jobs, an improvement from the revised 111,000 jobs lost in October. The unemployment rate was expected to remain unchanged at 10.2% but it dropped to 10.0%.

In the recent past, positive U.S. data have tended to trigger selling of the dollar as investors rushed to embrace more risk-sensitive currencies such as the euro. But that pattern was reversed Friday as market players perceived the strong U.S. data as suggesting the U.S. central bank could embark on rate hiking earlier than previously believed.

“To a certain extent you’re seeing a reversal of these risk trades,” said Stuart Bennett, senior currency strategist at Calyon in London.

Whether the risk trade more permanently unwinds depends on whether good economic data continue boosting the U.S. dollar–and whether those good economic data keep flowing at all, Bennett said.

If U.S. economic data continue to improve, the dollar’s recent relationship to investor risk sentiment could change, with the greenback gaining on positive news, as opposed to higher-yielding currencies enjoying all the fruits of an improving economy.

The positive November jobs report “tends to strengthen the hand of those who believe the recovery is building momentum,” said Alan Ruskin, global head of currency strategy for RBS Global Banking and Markets in Greenwich, Conn.

The better-than-expected jobs data likely push up by “at least a month” the date that the Federal Reserve will increase key U.S. interest rates, which Ruskin said should happen in the second half of 2010.

Also bolstering the case for an improving U.S. economy was the Friday morning release of U.S. factory orders, which rose for the sixth time in seven months in October, posting a 0.6% gain on the heels of stronger than previously estimated growth in September.

The increase beat expectations from economists surveyed by Dow Jones Newswires, who were expecting factory orders would be unchanged.

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Posted in Forex Option Trading | No Comments »

Exotic Binary Options

Friday, December 4th, 2009

Binary Options share some similarities with standard options, being one of them the fact that in order to make a profit from your contract you need it to be in the money by the time of expiration (unless of course you get a sudden and significant movement in price before expiration).


This means that like standard options also have a strike price which determines whether you are in or out of the money.


However, when you trade standard options your profits will depend greatly on how far near or in the money is your contract based on its strike price, so for instance, if you purchased and IBM November CALL option at the $130 strike when the stock was at $128.35 per share, you would have to invest $330 to purchase 1 contract and you would need the stock to go all the way to $133.30 just to break even, and believe it or not, a $5 movement in the price of a stock is a very significant increase, even for company that is trading above $100 per share.


Binary Options on the other hand allow you to invest as little as $30 in a contract and they do not require that the price takes you all the way to a $5 increase so you can make a profit, in fact, when trading these instruments you are an absolute winner just by being 1 cent in the money or an absolute loser if you are out of the money by the same amount.

This is what defines the very nature of binary options, because upon buying a exotic, or binary option, contract you either win or lose, but you will not do just fine if you win, nor will you just take a small hit if you lose, no, you will either score big or lose big, it is “all or nothing”.


Indeed, when your exotic, or binary option, contract expires in the money your return is anywhere around 65%-81% depending on the underlying asset, and these instruments are usually traded hourly, meaning that they expire not in a month (like standard options do) but within the hour.


This means that you can make 65%-81% of your investment in 1 hour, or you can lose up to 95% of your investment also in 1 hour.


Now, does this mean that binary options are too risky?


Well no, if you manage your risk and your money adequately you can achieve returns way beyond what you could expect within traditional options, without the need for your to be reckless.


What does it mean to manage your risk?


It means that if you have $2,000 you cannot buy a exotic, or binary option, contract worth the same amount, because if you lose you will wipe out your account in a single trade, which will leave you without the very thing you need to make up for your loses: trading capital.


Of course, if you win you might end up with $3,620 as well, but believe me, that is how you lose money and not how you make it.


A good risk and money management ideally involves limiting your risk to about 1%-3% of your account, because that way if you lose 1 or 2 or even 10 trades in a row -which is always possible- sure you will have taken a hit, but you will still be in the game, just like a good poker player.


So as long as you do not go crazy trying to get rich in one day with binary options you will not only be fine, you will be great, because the profit potential is just huge and the whole process of trading these instruments is a lot simpler because of what I explained before (you only need to be 1 cent in the money or less to get paid 65%-81% of your investment, which means that you only have to find the price direction, which is a lot easier).


Now, why do these instruments pay so much even if you are only a cent in the money?
Well, this is due to the very nature of these type of option contracts, you either get it all or you get nothing, which is why the returns on these instruments are fixed and they go from 65%-81% depending on the underlying asset of the contract.


This means that as long as the condition is realized (in this case that the price of the underlying asset closes at least $0.001 above the strike price -if it is a CALL option- or below the strike price -if it is a PUT option-) you will get paid the fixed return for that particular contract.


So, to conclude this quick look at binary options, you should take note of the following:

A exotic option, or binary option, generally trades in 1 hour periods
The return of a exotic option, or binary option, is around 65%-81 at the time of expiration
Your trade is a winning trade as long as your contract ends up in the money by at least $0.001

The only “secret” to be profitable trading binary options is to have good sense of the direction in price, because remember, you really do not have to be right about the magnitude of the movement, you only need the price to move in the direction you anticipated.


If you have yet to start trading binary options, make sure you get my FREE trading package so you gain the necessary know-how to easily find price direction and manage your money wisely. There is really nothing more to it.

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Posted in Binary Option Trading | No Comments »

Binary Betting

Friday, December 4th, 2009

Binary Betting is nothing but a hybrid child of traditional buy and sell options and those of fixed returns. As the name of binary betting suggests, the trade makes use of the binary option as defined in the technical jargon. The binary options have two outcomes – o and 1, which also imply win or loss situations respectively. Binary Betting  has a two way price quoted, not based on the price of the instrument involved in the betting, but on the likelihood of the event  occurring. For example, the bet is on whether the euro-dollar exchange rates will be above a certain level or not. If the prediction rate is correct then you get your original investment as well as the fixed returns on it as promised. On the other hand, if the prediction is incorrect or false, you lose all the money. Thus, binary betting involves a completely bipolar situation; there is either all or nothing, no way between.

As the binary betting has a continuous flow, it is highly fluctuating, but then the player has always got a preconceived idea about the risk exposure and the possible reward both on success and failure. This is why this form of binary betting is known as ‘fixed odds’ bet, the maximum or the minimum output from the trade being known beforehand. There is no way to change the option once chosen in this binary betting, but since this is a continuous  process there is a chance to win back all the money invested, provided the player makes rational predictions depending on the movements of the market.

There are several benefits associated with binary betting, like there is controlled risk firstly; the player might lose exactly what he invested there being no possibility for losing more in the system. Secondly, the trades are much easier and simper to undertake, having no complicated mathematical forecasting situations. The users need only have a clear understanding of the direction of the movement of the market of the instrument involved in binary betting. This advantage makes learning binary option trading much easier and thus has a wider reach out with a large number of users from any background. The binary betting is a much safer method than all its brothers and sisters in the system, for there is no scope of any additional loss in case of a mishap, except the amount of money invested. In addition, binary betting and binary trading are carried on 24 hours round the clock allowing the traders multiple opportunities of trading on multiple time frame according to their respective time domains. This multiple chances increase the probability of hitting the jackpot for the user. Besides, in binary betting there is always an expiration time arriving, which constantly yields new opportunities for the traders.

This style of trading is best suitable in markets for volatile instruments, with a continuous fluctuation involved and having very short term trading periods. Binary Betting is specifically apt for trading ‘bounces’, where, as the instrument is fluctuating due to having the option of multiple opportunities, there is always a possibility of gaining an idea about the direction of the ongoing market and hitting the jackpot at the next chance.

Several websites sprawling across the World Wide Web provide a vast binary options trading platform to a large number of users, making it easier for them to access and gain a proper understanding of the working principles of the binary betting. The cash or nothing option limits the possibility of the existence of the tricks of the trade, which then just depend on the market movement. This eventually is quite unlike ot other forms of online financial betting, where an aptitude for the application of mathematics as well as use of rationality is largely required.


However, in spite of having all its benefits and advantages over other such forms of trade, binary options betting is not applicable to all forms of marketable instruments and has a comparatively limited reach out. Binary options have cash transactions and do not involve exchange of instruments.

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Posted in Binary Betting Strategy | No Comments »

Digital Binary Option FAQ’s

Friday, December 4th, 2009

Here are some common beginners questions that we’ve answered to help all the newbie digital binary option traders.

What are Digital Digital Binary Options?

Digital Binary Options, or digital binary options, are digital binary options that pay a pre-determined, fixed amount, depending on whether or not a event occurs at the time the option expires. Like traditional digital binary options, digital binary options are based on an underlying asset. For example, you speculate $100 that the gold price will be higher than the current price in one hour from now with a payout of 75%. If you are correct, you will receive $175 (i.e. $100 investment plus 75% profit of $75). On the other hand, if in one hour from now the gold price is lower than the current price, you will keep 15% of you initial investment amount (i.e. $10). Start trading here.
What are the benefits of trading Digital Binary Options?

Digital Binary Options offer several benefits for traders and investors:
1. Defined risk and reward – The percentage return is known from the outset, as is what you stand to lose. Therefore, you remain in full control of your risk and do not need to worry about placing stop losses or closely monitoring your positions.
2. Easier, simpler – Digital Binary Options are simpler to understand than other types of trading since you only need a sense of direction, i.e. ‘Will the AUD/USD increase or decrease in an hour?’ and are not concerned with the magnitude of the move.
3. High returns – A winning trade will receive the entire payoff (up to 75% of the investment amount), even if it was ‘right’ by a single tick since you are speculating simply on directional movement.
4. Hedging – A digital option can be used to hedge open positions in other assets such as currencies, commodities and stocks. In this way, using digital binary options can mimize further losses elsewhere.
5. Volatility – Because digital binary options, by their nature, have a high fixed payout, they offer opportunity in otherwise flat markets.
Punctuality – Binary contracts are being issued around the clock, allowing you to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities.

Start trading here.
How do I get started?

You can register online in just a few minutes. To sign up:
Click on the registration link on the top of the home page.
Fill in the requested details.
You will receive a confirmation e-mail at the e-mail address you entered during registration. Clicking on the verification link in the e-mail.
Log in to one of Binary Option Trade .com’s recommended sites:
Any Option .com
One Hour Option .com
Start trading!

Is there a registration fee?

No. Registration is free.

Will I need to download any software to start trading?

No. Our platform is completely web-based so you do not need to download any software in order to trade on Binary Option Trade .com’s Platforms.
How do I trade?

Trading digital binary options on Binary Option Trade .com’s Platforms is very easy. After logging in to one of our recommended platforms, follow these simple steps:
Click on the ‘Trading’ link (most left on the tab menu) and select the market you’d like to trade. You can find the fixed payout for each option in the headline.
Choose the direction: either CALL (Above) or PUT (Below)
Select the amount to invest
Click ‘Trade’ to execute your trade.

What is the payout for the digital binary options traded?

Payouts range from 71 – 75% to 75% for successful trades (digital binary options that expire in-the-money), and a 5 to 15% refund of the investment amount for unsuccessful trades (digital binary options that expire out-of-the-money). For example:

Assuming you choose CALL (Above):

If the market closes above the price you purchased at expiry, you receive up to 75% payout in addition to your original investment amount.

If the market closes below the price you purchased at expiry, you keep 5 – 15% of your original investment amount.
Assuming you choose PUT (Below):

If the market closes below the price you purchased at expiry, you receive up to 75% payout in addition to your original investment amount.
If the market closes above the price you purchased at expiry, you keep 5 – 15% of your original investment amount.

What is a Call Digital Option?

A call digital option is an option that yields a profit for the buyer when the price of the underlying market (the strike price) at the expiry time is higher than the expiry price. A call buyer believes that the price of the underlying market will likely rise by the expiry time. Start trading here.
What is a Put Digital Option?

A put digital option is an option that yields a profit to the buyer when the price of the underlying market (the strike price) at the expiry time is lower than the expiry price. A call buyer believes that the price of the underlying market will likely fall by the expiry time. Start trading here.
What is ‘in-the-money’ expiry?

A term to describe a successful option trade, i.e. when the expiry price of the underlying market is above the strike price for a call digital option and below the strike price for a put digital option. For more go to Start trading here.
What is ‘out-of-the-money’ expiry?

A term to describe a failed option trade, i.e. when the expiry price of the underlying market is below the strike price for a call digital option and above the strike price for a put digital option. Start trading here.
What is ‘at-the-money’ expiry?

A term to describe an option trade in which the the expiry price of the underlying market is equal to the strike price. Start trading here.
What is the ‘investment amount’?

The amount of money at stake.
Is there a minimum amount to trade?

No.
Is there a maximum amount to trade?

No.
Can I buy the same option multiple times?

Yes, you can buy the same option as many times as you want at an unlimited cumulative amount subject to having sufficient funds in your account.
Can the digital binary options be liquidated prior to expiration?

No, digital binary options on Binary Option Trade .com’s Platforms are European style digital binary options, meaning they can only be exercised on the expiry time and cannot be liquidated (sold to close) prior to expiration.
Do I need to manage risk?

The deposit required for a digital option on a given market will be equal to the investment amount. Unlike other derivatives, digital binary options are not a leveraged product. This means that digital binary options cannot result in losses that exceed your initial deposit. Therefore, you do not need to worry about managing risk by closely monitoring your open positions or using stop orders.
Do the digital binary options result in the delivery of the underlying asset?

No, digital binary options are cash-settled and cannot result in the delivery of the underlying asset.
What markets are currently traded on Binary Option Trade .com’s Platforms?

Forex Currency Pairs:
EUR/USD
GBP/USD
USD/CHF
USD/JPY
USD/CAD
AUD/USD
US-listed Stocks:
Apple (Symbol:AAPL)
Cicso (Symbol:CSCO)
Citibank (Symbol:C)
Google (Symbol:GOOG)
Microsoft (Symbol:MSFT)
Yahoo! (Symbol:YHOO)
NewsCorp (Symbol:NWS)
And more …
Precious Metals:
Gold (XAU)
Silver (XAG)
And more …

What are Binary Option Trade .com Binary Digital Option Platform trading hours?

Since Binary Option Trade .com’s digital option platforms are based on securities traded on Stock and Commodity Exchanges and the Foreign Exchange Market, Binary Option Trade .com’s digital binary option platforms can be traded only during the hours in which those securities are traded. Trades will not be accepted for the last 10 minutes of each one-hour period.
What is the ‘current price’ shown for each underlying market?

Each price reflects the real-time price of the underlying market.
What is the ’strike price’?

The strike price is the price of the underlying market when the digital option is purchased.
What is the ‘expiry price’?

The expiry price is the price of the underlying market at the time of expiry of the digital option. Start trading here.

What happens if the expiry price is identical to the strike price

?

In such a scenario the expiry will be ‘at-the-money‘ and the investment amount will be returned to the investor in full. For example, if you bought a $100 ‘call digital option’ on Google stocks at a strike price of 305.5 and the expiry price was 305.5, the full investment amount is returned to you, and your account will be credited with $100.
What is the ‘expiry time’?

The expiry time is the time and date at which an option expires.
What is the time zone of the expiry time?

The site’s trading hours and expiry time are shown according to your PC’s time zone.
Do you charge any fees?

No, unlike other online trading providers, Binary Option Trade .com does not charge you fees, nor do the digital binary option platforms we recommend.
Are the profits from trading in digital binary options taxable?

Customers should seek their own tax advice regarding the income tax consequences of trading in digital binary options in their country of residence.

Thanks to marketpunter for all their advice.

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Posted in Beginners Guide to Digital Options, Binary Options and Binary Betting | 1 Comment »

Conquer Binary Option Software

Thursday, December 3rd, 2009

Binary Option software is getting well known among the day traders these days. The reason behind this is that it gives day traders a chance to gain good returns in a very small time span. Therefore people throughout the world have started showing interest in this trading. 

The question that must be arising in your mind would be why to go for binary option software trading. Usually what happens in binary option trading software is that the options reward approximately around sixty to seventy five percent of profit for in the money position and also in case the option is out of money around fifteen percent of returns can be expected on the original capital.


A very good thing about this type of investment is that the trade is allocated or billed in dollars amount. The amount is normally fixed in dollars. You will find actually some platforms in fact very few platforms that will aim at providing the day traders fixed amount but this is one place wherein you can expect this and take the benefit of it. This is some what similar to the functioning of the mutual funds. This is a great opportunity for the traders to earn well from this binary option trade. This is one of the advantages of the binary option software; there are many more that you need to know. Getting knowledge of these advantages will give you an encouragement to carry out binary option software trading.

Other advantages of binary option software trading are as follows:



Binary Option Software Software is very cost effective. This is because it involves very low cost and so you can start trading with a very small amount as your initial investment.



This options trading involves very less time. This type of options trading is regarded as a fast paced method of participating in the market.


You can expect high returns from binary option software trading. In a very small time period you can earn good if you adopt good and reliable techniques of trading.


When binary option software trading is compared to other types of options it is found that binary option software are very easy to understand and so for the traders that are newbie this trading can highly be fruitful. 

One more thing that you need to know is that you will have to open up an binary trading account to begin with trading and earning good.

So what are you waiting get started with binary option software trading today!

Use these recommended platforms:

One Hour Option .com
Any Option .com

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Posted in Easy Way to Make Money | 1 Comment »

Stock Futures Climb After Obama’s Job Comments

Thursday, December 3rd, 2009

According to Market Watch, U.S. stock futures added slightly to their gains Thursday after the government reported jobless claims fell 5,000 last week to 457,000, with the data better-than-expected. Futures for the Dow Jones Industrial Average gained 43 points to 10,482.00. Those for the S&P 500 added 5.80 to 1,113.7. Nasdaq 100 futures rose 5.5 points to 1,797.

Start trading on binary option trading platform today. While futures are still clear.

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Posted in Stock Watch | No Comments »

Binary Option Trading and Gold, Oil, Silver and Gas

Thursday, December 3rd, 2009

Gold, silver, oil and gas are commodities, or raw materials that are distributed across a market without any qualitative differentiation. Its important to remember that gold, silver, oil and gas provide the foundations to the world we know so they make strong investments on binary option trading platforms. There are many types of gold, silver, oil and gas, but they will always fall under either hard (i.e. coal, sugar, …) or soft gold, silver, oil and gas (oil, gas…)

The gold, silver, oil and gas are on the derivative market is one of the least developed with regards to the provision of sophisticated structured products, however it is possible to trade most gold, silver, oil and gas using commodity binary options.

Commodity Binary Options enable you to take a view on a particular or portfolio of gold, silver, oil and gas using binary options. Oil is one of the most recognized and followed traded gold, silver, oil and gas, not only for its high level of volatilities and price swings, but it is also arguably the most essential commodity to the majority of countries.

If you perceived that the value of Oil is (per barrel) is going to go up then you would buy or if using a commodity binary option the trader would make a call option. Alternatively if the trader felt the price of oil was going to fall then a put option would be placed. Due to the unpredictability and price sensitivity a commodity binary option manages your risk from unexpected price moves and market crashes. Also in the unlikely case of trading a commodity in its underlying form and not managing to close your position you will be left with the raw material.

You can start trading on gold, silver, oil and gas today at these high return (70 – 75%) binary option trading platforms:

Any Option .com
One Hour Option .com

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Posted in Commodities Trading | No Comments »

Economic Recovery – Trade Commodities on Binary Option

Thursday, December 3rd, 2009

Today is a great day to trade on commodities. According to Bloomberg, the U.S. stock-index futures rose, indicating the Standard & Poor’s 500 Index may climb for a fourth day, after Bank of America Corp. said it will repay $45 billion of government bailout funds.

The nation’s largest lender gained more than 3 percent in Germany as the move to pay down debt helped free the bank from restrictions on executive pay that had hampered its search for a new leader. Vertex Pharmaceuticals Inc. slipped 1.6 percent after the drugmaker sold $442.8 million worth of shares.

Futures on the Standard & Poor’s 500 Index expiring this month climbed 0.6 percent to 1,114.6 as of 9:54 a.m. in London. Dow Jones Industrial Average futures rose 0.5 percent to 10,495 and Nasdaq-100 Index futures increased 0.5 percent to 1,800.5.

“The less involvement financial institutions have with governments the better,” said John Haynes, a U.S. equity strategist at Rensburg Sheppards Plc in London. “Clearly Bank of America shareholders would agree.”

Most U.S. stocks rallied yesterday after the Federal Reserve’s Beige Book report said the economy is “modestly” improving and as higher metals prices boosted raw-material producers.

A report today may show service industries in the U.S. expanded in November for a third month, indicating the economic recovery is broadening beyond manufacturing, according to economists.

Read more here …

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Posted in Commodities Trading | No Comments »

Record Weak Dollar and Strong Gold – Trade Gold Binary Option on Call and Dollar on Put Today

Thursday, December 3rd, 2009

Today could be a great day to put money on a binary option trading platform with a short expiration and a fast return. According to Bloomberg:

Gold, little changed after reaching a record in London today, may rise as investors seek protection from a weakening dollar.

The dollar fell as much as 0.6 percent against the euro on speculation the European Central Bank will announce plans to scale back emergency lending while keeping its main interest rate at a record low. Bullion, which usually moves inversely to the greenback, has risen 38 percent this year as the U.S. Dollar Index has dropped 8.4 percent.

“The dollar is a little bit weaker,” Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich, said today by phone. “Momentum is very positive for gold, and weakness in the dollar is expected to go on until the end of the year.”

Gold for immediate delivery gained as much as $10.86, or 0.9 percent, to $1,226.56 an ounce and traded at $1,217.20 by 9:42 a.m. local time. Bullion futures for February delivery on the New York Mercantile Exchange’s Comex unit were 0.4 percent higher at $1,217.60 an ounce after reaching a record $1,227.50.

Bullion may rise as high as $1,500 within two years because of the declining dollar and renewed investment demand, Richard O’Brien, Newmont Mining Corp.’s chief executive officer, said yesterday. Standard Chartered Plc raised forecasts for gold prices.

‘Strong’ Demand

“Sentiment is still upbeat, and investor demand continues to be strong,” said Stefan Graber, an analyst at Credit Suisse in Singapore. “You can’t really fight momentum. The rally will continue into year-end because of enthusiasm in the market.”

Bullion may rise to $1,350 an ounce next year, according to O’Brien, who runs the biggest U.S. gold producer. Standard Chartered now expects gold to average $1,150 in 2010 and $1,300 in the following year. Gold may reach $1,300 an ounce next year, UBS AG said.

The Federal Reserve has kept benchmark U.S. interest rates close to zero percent since December 2008 in a bid to revive lending after the worst financial crisis since World War II. Fed officials acknowledged last month that the record-low borrowing costs might fuel “excessive” speculation in financial markets and possibly dislodge expectations for low inflation.

“Gold is rising to records because investors want to hold it to hedge against inflation,” said Hwang Il Doo, head of the trading team at KEB Futures Co. in Seoul. “Other metals are getting a boost from rising gold.”

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