If Obama Is Re-elected What Happens to Binary Options Trading?
Historically the stock market has been a consistent predictor of the election results. Since 1948, the
Standard & Poor’s 500-stock index has proved to be a reliable indicator of the president’s reelection.
To complicate this even further there is what is called ‘election stock market.’ Election stock markets
(also referred to as election prediction markets) are financial markets in which the ultimate values of the contracts being traded are based on the outcome of elections. Participants invest their own funds, buy and sell listed contracts, earn profits and bear the risk of losing money. Election stock markets
function like other futures exchanges, such as commodity exchanges for the future delivery of grain,
livestock, or precious metals.
But the bottom line is it won’t matter which party is back in office because you are bidding
incrementally. In binary options, a percentage of profit will not be effected by any change in the
trends of the market. These trends become important when you are looking at long term investment
opportunities. But binary options let the average person trade without the need to ‘study the stock
market’ in the traditional sense.
A binary option, also known as a digital option or an all-or-nothing, is a trading instrument with a
fixed return that is determined at the outset of the trade. A trader will
receive a predetermined payout if the binary option expires in-the money.
A Binary Option asks a simple yes or no question. An example would be will gold go up or down in the next 15 minutes? If you think yes, you call the Binary Option. If you think no, you put.
The great advantage of binary options is that the actual price of gold does not matter. You are simply
bidding on the direction of the stock. The stocks will continue to fluctuate whoever is in office.
Binary Options offers several opportunities for trading which can be split into four categories:
Intraday – at times within the current trading day
Daily – at the end of the current trading day
Weekly – at the end of the current trading week
Event-based – at a specified future time and date
In addition, binary options trading offers you the ability to earn 70%, or more, within your first 15
minutes of trading. Obviously there are risks but if you are looking to exponentially increase your
investment binary options trading is certainly worth considering.
The added benefit of being an active binary trader is that you can spend less time watching politics
and more time enjoying life.(Remember, any investment carries risks. Seek the proper advice before investing money).