Twenty years ago, trading commodities required having substantial capital. Most contracts were for large amounts and the trades themselves were highly speculative. Traders confronted a high degree of risk. This was long before trading gold and oil binary options had become possible.
Around the 1990s, contracts for difference – referred to as CFDs – were developed. These were “simple” contracts between buyers and sellers, and allowed both parties to execute trades based on nearly any underlying asset. CFDs helped to introduce retail investors to commodities trading.
It wasn’t long before binary options debuted. The instruments were a form of CFD, with online brokers focusing primarily on stocks, indices, currency pairs, and commodities. Investors and speculators could now trade gold & oil binary options with few, if any, problems. Moreover, they can do so with a fraction of the capital that was required in the past. Today, the commodities markets remain popular for retail traders via binary options trading. This is mainly due to the low-cost entry point (trades are as low as $10) and the ease with which trades can be executed.
Below, we’ll provide an overview of the binary brokers that offer trading in gold and oil binary options. You’ll also learn about the various instruments available and the most common expiry times. If you intend to trade in precious metals and crude oil, and have limited capital to risk, you’ll find binary options offer an ideal solution.
Brokers That Offer Gold & Oil Binary Options
A large number of brokers offer oil and gold binary options. But not all brokers are recommended. The reason? There have been a number of rumors circulating over the last few years regarding scam trading sites. While some rumors are bound to be unfounded, many are legitimate.
We’ve found that focusing on a select few binary options brokers, each of which maintain a strong reputation for dependability, is the best way to avoid disappointment. Our short list currently includes TradeRush, 24Option.com, Banc de Binary, and AnyOption. None are perfect, and each one has critics, but all four have managed to sidestep most of the controversy focused on their competitors. We’ll provide more details about each broker below.
Types Of Binary Options For Trading Gold And Oil
One of the most appealing aspects of binary options is their simplicity. When you execute a trade, you are essentially predicting whether the price of the underlying asset – e.g. gold or oil – will move up or down. Each trade is accompanied by an expiration date and time. If the asset’s price moves in the direction you predicted, and reaches a certain price within a specific time frame, the binary option is considered to be “in the money.”
There are several ways to trade gold and oil binary options. The simplest way is to bet on whether the underlying commodity’s price will move up or down. Such instruments are called up-or-down binary options. If you’re familiar with trading options, you might think of them as calls or puts, respectively.
Another popular instrument is known as a touch/no-touch binary option. If the price of an ounce of gold or barrel of light crude oil “touches” the target price while the binary option is live, it is considered to be in the money. Alternatively, a “no-touch” option would expire in the money if the commodity’s price fails to touch its target price.
You can also trade gold and oil futures with range binary options (sometimes called boundary trades). These are trades in which you forecast whether the price of the commodity will be within a certain range when the instrument expires. For example, a gold binary option may come with a price range of $1,589.10 to $1,589.80. You can choose whether the price will fall within, or outside of, the specified range.
Simpler gold & oil binary options include “high” and “low” trades. They are based on whether the price of the underlying commodity ends up above or below its strike price.
Expiry Times For Gold & Oil Binary Options Trading
Trades come with different expiration times. Some last as long as a month. Others expire in 60 seconds. You can execute trades that expire in 5, 15, or 30 minutes, as well as those with longer expiry times – e.g. 60 minutes, 24 hours, or 1 week.
60-second binary options have become increasingly popular since traders can execute several trades within a short time period. They know within a minute whether their trades are profitable. Because the action is extremely fast-paced, however, it is critical that you track your progress with each trade. Otherwise, you could quickly lose a substantial amount of capital if you make a series of incorrect predictions.
One of the best brokers we’ve found for trading 60-second binary options is Banc de Binary. They have a stellar reputation and a dependable track record. Unfortunately, they currently limit this type of option to a few currency pairs and stocks. 24Option.com and TradeRush have also begun to offer these trades. But they too limit them to specific currency pairs. When 60-second options for gold and oil trading become available at these brokers, we’ll update this page with the news.
Top 4 Brokers For Trading Oil And Gold Binary Options
As mentioned earlier, not all binary options brokers are recommended. Several scam sites have surfaced lately, generating numerous complaints among traders. This is the reason we only recommend a few brokers at this time (though we continuously review other sites). The four sites below offer gold and oil binary options trading with a range of instrument types and expiry times. They also maintain extensive asset lists, competitive returns, and quick payouts. If you’re planning to trade oil and gold, we recommend starting at one of the following sites…
24Option – This broker requires a relatively low $250 deposit to get started trading oil and gold (or other assets). The minimum trade amount is only $24. You can trade stocks, indices, currency cross-pairs, and of course, commodities, such as gold and oil. Returns on in the money trades begin at 75 percent and skyrocket to over 300 percent on some high-risk instruments. You’ll also find trades with expiry times ranging between 60 seconds and 1 month. Visit 24Option.com today to register your account. Is 24option legit? Yes.
TradeRush – A $200 deposit is enough to get started at TradeRush. Here, trades can be executed for as low as you’ll likely find with legitimate binary options brokers: $10. The low entry price makes TradeRush a great place to test the waters if you’re new to binary options trading. You’ll have access to several option types, most of which can be executed with a full range of expiry times. Visit TradeRush today to test drive their trading platform.
Banc de Binary – Payouts for in the money trades at Banc de Binary range from 70 to 90 percent, though some higher-risk instruments offer higher returns. This broker provides many different expiry times and option types, including (as already noted) 60-second options on select assets. Banc de Binary requires a $500 deposit to start trading, which is higher than the other brokers on our list. However, you’ll receive a demo account that can be used to become accustomed to their trading platform (the popular Tradologic platform). Visit bbinary.com today to make your first deposit and get started.
AnyOption – Minimum deposits at AnyOption are only $100, and trades can be executed with as little as $25. You’ll find a huge list of assets, including dozens of stocks and currency pairs. Returns on in the money trades range between 65 and 71 percent. Although relatively low, if a trade expires out of the money, you’ll receive a 15% rebate. You can also trade gold and oil binary options on your mobile device using a special app. Visit AnyOption.com to create your account.
If you plan to trade oil
& gold binary options, it pays to study both markets to learn how their prices react to various events. Once you’re ready to get started, we recommend that you register your accounts with the brokers profiled above.