Commodity Options Trade on a Low Budget: Option Trading with Low Capital

Most people don’t realize that commodity option trading takes much less capital to make money than they think. Binary options, a type of alternative exchange that is popular today, allows a few of the world’s most valuable commodities to be traded. Binary options are a great alternative to other markets that require thousands of dollars to be invested. If you want to learn a very powerful trading strategy that brings a lot of profit, you should know about unusual options activity

Commodity Options Traded on Binary Exchanges: Common examples

Anyone who is interested in investing in the commodity option market would be keen to find out if there are any boards that offer these three big commodities: gold, oil, and silver. As more traders become familiar with these commodities, they have begun to add them to their trading desks.

Gold is a high-risk/high-return investment.

Gold options contracts are typically paid in the range of 65 to 75 percent per hour, or day. This depends on the conditions of the contract at the time it is executed. For example, traders who invested $100 on Wednesday at 11am could expect to receive a 70 dollar return (in addition to the initial $100) if the contract was in the money.

You can still get some payouts even if you choose options that are out of your money

Even when the trade is out of money, some contracts on the market offer investors a modest return (typically 15 percent) of their invested capital. The investor in our $100 example would expect to get fifteen dollars back if the contract expires out of the money.

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