Stock Rise Due to Fed Decision
by Tamar on Nov.04, 2010, under DOW, Euro, Federal Reserve Board, NASDAQ, binary options trading, currencies, trade strategies, yen
The Dow closed yesterday at 11,381, rising by 167 points from its previous close. The NASDAQ closed at 252, rising by 31 points from the day before.
The close of the markets at a higher level today is due to the announcement this week of the Federal Reserve Board that it will purchase $600 billion in Treasury bonds , but leave interest rates at the current level of almost zero percent.
The European Central Bank announced that it is leaving its interest rate at 1.0 percent.
The dollar weakened and other currencies rose as a result of the announcement as well. The Euro rose above $1.42 and the pound rose to $1.6107. The dollar held up against the yen, in part due to the expectation that Japan will implement its own similar measures of economic stimulation Friday.
Side Games For Operators
by Ravit Friedberg on Oct.21, 2010, under Uncategorized, binary options trading
What are Side Games?
Side games, as their name implies, are an additional means of entertainment, offered to players alongside a main source of interest. While a bingo player is waiting for the next number to be drawn, a side game of scratch cards can help pass his time. While waiting for other players to join the table in a game of poker, taking a stab at the slot machine may help make the player’s wait more interesting.
Side games not only enrich the players’ experience, but also generate another profitable vertical for the site’s operator. A good side game should be quick and simple, evoking momentary excitement, without distracting the player from the main game.
Binary Options as Side Games in Forex Sites
Binary options evoke that excitement, making them a perfect side game for forex web-sites. Maintaining the financial context, binary options provide a simple access to the complex world of trading, in a new and exciting manner.
Forex trading is comparable to a game of blackjack- beginning players can play it using a limited set of rules, or by well-experienced brokers, who formulate strategies on how to foresee the markets’ trends. Binary options are comparable to a game of slots, with or by well-experienced brokers, who formulate strategies on how to foresee the markets’ trends.
A good example for adding binary options to an existing forex site was recently launched at http://options.fxtrade.co.jp. Using Markets Pulse’s binary options platform, this collaboration demonstrates how an existing forex site can benefit from offering binary options to its clients as a side game.
If you want to provide your clients with new experiences and constant interest, while generating greater revenue from their activity – side games are the way to do it. In the online financial markets, binary options are the hottest trend.
When Will Japan Intervene Again in the Yen?
by Tamar on Oct.18, 2010, under Hang Seng Index, Uncategorized, World markets, binary options trading, currencies, trade strategies, yen
The yen rose again today amid expectation that Japan will not yet weaken its currency before the meeting this week of the Group of 20 nations (G20).
The yen opened October 18 at 81.3, following a trend in which the yen has strengthened steadily against the dollar now this month. On October 15, the yen reached 80.88, hitting a 15-year high and coming close to the post World War II high of 79.75 the same month.
The rise of the yen in the world market against the dollar and the euro has caused concern for Japanese exporters, who are now finding it expensive to do business in Japan. The Japanese government has previously intervened in its currency in September of this year, spending $25.61 billion in the move, and at one point causing the dollar to rise 3% against the yen.
The G20 meeting will take place on the 22nd and 23rd of October through November 11, and among subjects discussed there will be how to prevent a “currency war”- a state in which countries weaken their currency at the expense of others.
The Japanese government is expected to intervene and weaken its currency at some point. Traders and market investors predict it will be after the G20 meeting, as intervening beforehand would be too controversial and hurt many currency traders, who have now bought yen against the dollar and are waiting for the currency to move and profit accordingly.
Traders can now keep in mind the G20 meeting and pay attention to different currencies in order to trade around this time.
The Best September Since 1939
by Tamar on Oct.10, 2010, under binary options trading, stock spotlight
Customarily one of the slowest months in trading, this September benefited from a 9% increase in
the market, after a 5% decrease in August. The Dow Jones closed 7.72% higher than in August, the strongest September since 1939, when the Dow Jones closed at 13.49% after the expected future US participation in World War II caused anticipation of a rise in goods for manufactured goods and war materials.
Other significant events for the month:
The employment market saw 39000 jobs lost. Unemployment rose to 9.7%.
Ireland: Not Another Greece But…
by Tamar on Sep.29, 2010, under Countries, Euro, Ireland, Uncategorized, binary options trading, currencies, trade strategies
Source: SatyrTN
Rally in the DOW as Fed announces New Policy
by Tamar on Sep.22, 2010, under DOW, Dow Jones, Uncategorized, binary options trading
The Dow rallied 80 points after the decision of the Federal Reserve Board to create money for the purchasing of Treasury Securities, a tactic known as quantitative easing. The increased cash flow would be an attempt to increase lending and stimulate the economy after interest rate is already close to 0%. (The current interest rate in the US is .25%). The drawback to quantitative easing is inflation, since although it creates more money to circulate in the system, the amount of goods available remains stable.
Decisions of major players in the marketplace offer a perfect opportunity for traders to game the news ticker, a strategy discussed previously, or hedge bets. Operators could also make sure to offer binary options that allow traders to take advantage of possible market rallies such as these.
Market Summary for August 2010
by Tamar on Sep.02, 2010, under Dow Jones, Euro, World markets, currencies, monthly report, wheat, yen
Indices rose Friday, with the S&P closing at 1,065, a 1.7% increase. The DIJA rose by 165 points or 1.7%, ending at 10,561. The Nasdaq Composite also rose by 1.7% that Friday.
Some of our most popular technology stocks, however, have announced important 3rd quarter reports. Intel estimated sales of $11 billion for the third quarter rather than its previous estimate of $11.2 to $12 billion in sales. HP and Dell are both vying over 3Par, a company offering customized storage solutions for mid to large-size companies.
The Federal Reserve Board chairman Ben Bernanke vowed Friday to do all he can to prevent deflation in the US.
The dollar fell along with oil prices, which ended Tuesday at $72.39 a barrel. Gold ended at $1,233.40 an ounce. Wheat prices continue to rise after Russia declared a moratorium on wheat due to a drought.
The US unemployment rate remained at 9.5% this month, although the private sector added 71,000 jobs.
Home sales in the US sunk 27% in July, to their lowest level in 15 years.
World Markets
China reported a fall in growth in July for the first time in 16 months. This week China is expected to release its GDP growth for the 2nd quarter as well as balance of trade reports, which will give analysts information on future growth and investment or if the fall is a trend. India will also release growth figures. Analysts expect 8% growth to be announced. Analysts predict that India will catch up more to China in terms of growth rate this year.
The European Central Bank will unveil latest interest-rate decision on Thursday. It is likely to leave the rate unchanged, a confirmation that continue with relaxed lending policies until the end of the year.
Carrefour reported this week a net profit of Euro 82 million as it seeks to expand to markets in Brazil and China.
Vivendi, French media and telecom group also reported today a 6.6% rise in profit to 1.26 billion Euros for the first half of the year.
Currencies
The dollar fell to a 15-year low against the Yen. The euro fell to a 9-year low against the yen, and the British pound to 3-month low against the yen. The strength of the yen causes concern for exporters.
Google Offers Online Phone Service; Competes with Skype
by Tamar on Aug.29, 2010, under Apple, Google, binary options trading, trade strategies
In a move made to compete with Skype and possibly Apple, Google is now offering a feature which allows users to use the phone to contact one another via Gmail. It will be interesting to see if Google will provide better reception than that of the iPhone. And if it eventually provides the ability to use this from a mobile phone, then it will truly compete with the iPhone as a service provider.
For now, the feature is only available in the US, but once it is available throughout the world, it will be interesting to see how this will affect the price of Google stock. Advanced investors may be able to take advantage of binary options and game the news ticker, watching carefully for when Google makes the feature available worldwide and when it expands features. You can see our previous entry written in March for more of an explanation on how to use this strategy to make a return on your investment.
Will China’s Economy Surpass the US? – Maybe not- Part 2
by Tamar on Aug.23, 2010, under China, Countries, Hang Seng Index, What are binary options?, World markets, Yuan, binary options trading, currencies, trade strategies
Of course, not everyone agrees that China will be growing so fast. A couple of major problems loom: China’s GDP has indeed been growing rapidly in the last 30 years, but that could be because it has a while until it reaches a high rank. Chinese GDP is still below the 100th rank in the global economy. Another factor making it difficult for China to climb to the top is the state of the current global economy, the decrease in demand for exports and the rise of unemployment.
Some experts even feel that China’s GDP will fall in the next few years. Hedging might be a great binary options and forex strategy for traders of forex and binary options for those who are cynical about the Chinese takeover of the world.
What this means for traders:
Traders might want to pay attention to the Asian currencies, in particular the yuan, the Chinese currency which the Chinese government decided earlier to peg to the dollar (see our previous post). This in turn makes Chinese exports more expensive, but imports cheaper. Be on the lookout for trades connected to rises in production expense and major companies such as Wallmart and Target, who have overseas factories. Other companies which have been cheaper alternatives to American products, such as Toyota and Honda, may also present good binary options opportunities.
What this means for trade operators:
Chinese stocks and markets are a new opportunity for traders. The Asian market will also be influenced by its #2 neighbor. Read more about online trading in the binary options market.
Will China’s Economy Surpass the US?- Maybe- Part 1
by Tamar on Aug.19, 2010, under China, Hang Seng Index, Uncategorized, World markets, Yuan, binary options trading, currencies
China has beat Japan as the second-largest economy in the world. With an average GDP growth of 10% for the last 30 years, a population of 1.4 billion, first place in the world’s and consumption and production of coal, steel and energy, and the world’s largest exporter and second-largest importer of good, the country stands a chance at becoming number one soon. (It is also ranks first-place in the world in coal production).
Other news in China is the country’s allowing foreign investors to invest in the Chinese market. A pilot program will allow foreign investors to buy bonds in the Chinese market using Chinese currency.
Shanghai is set to become a world leader in finance by 2020. As a result, they are tapping into corporate investment abroad and could allow foreign companies to sell shares in Shanghai as early as next year. Rumor persists that Shanghai may allow foreign investment in yuan-dominated private equity and venture capital funds as well in the near future.
Since the yuan ended its peg against the dollar on June 19 it has risen by .5 percent. Announcement of the end of the peg causes a 4.8 percent increase in Hong Kong yuan deposits in June. China is now making it easier for yuan transactions between banks and companies in Hong Kong as well as those transferring cash in order to buy wealth-management products.
The rise of the yuan currency combined with rising sentiment about China’s future could make it a good short-term investment for binary options and forex traders.
