Investing in Binary Options is mainly to have the capacity to predict the movement of an asset, higher or lower. First we have to decide when a price of an asset is high or when is the price low. In this part we discuss several techniques to analyse the specific asset and to discover worldwide trends that can influence different kind of market.

  • Fundamental Analyses: makes use of real data to determine the price of an asset. This technique is mainly used to determine the price of a stock but this method can also be used to determine the value of other assets.

For Example, a trader may use fundamental analyses to determine the value of a particular stock when he looks at the profits, revenues, growth, ROI, profit margin and other data to compare it with another company in the same market.

  • Technical Analyses: analysing process that investigates previous data and movement to discover certain patterns. When a pattern is discovered the trader have the possibility to predict (on a certain level) if the investment has a good chance of success or not. So, this is a method to use old data and movement to discover patterns and upcoming movements of the asset

  • Geopolitical Analyses: this is a form of fundamental analysis and focuses on the political effects on assets. It looks at the historical happenings and how this effect the total market. A trader can look at social, economic and political elements that may have an effect of grow on store stockings, ask and demand. When a trader uses this method it also looks to several other economic indicators like interest rates, inflation rates, national spending patterns, etc. An example is the war in the Middle East that causes different ask and demand for certain products.

  • Financial indicators: as mentioned earlier, fundamental analysis are depending on financial indicators to predict them. Interest rates are an example of an indicator that can influence the currency market. Besides this it may come in handy to know a bit of the financial agenda of several countries because these decisions can influence the market.