Mathematical systems and signs to make money with Online Binary Options

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Negotiate calculated by simple arithmetic average indices

These indices, as the name suggests, are calculated on all values ​​of the major stocks listed on such exchange, are summed and divided by the number of selected companies. As all the companies selected have the same weight, usually what you do is analyze the price index as if it were a single asset, without more, by analyzing their behavior in the recent past and in the past the medium term.

Once past these values ​​known, the program used for the analysis of charts gives us a prediction of the behavior of the index will be short term and this what we are going to be based on technical analysis. For the primary analysis, we rely on the news media and on the economic calendar. The economic policy of the country is essential to know if there may be some factor affecting the index value.

Negotiate indices calculated by weighted average

The weighted average takes the values ​​of the shares of the companies comprising the index, but not all have the same weight, such as in the arithmetic mean, but some have more weight in the index value than others. In the end, a small handful of companies, sometimes no more than five, are what really determine the value of the stock index.

When trading binary options, keep in mind these companies, analyzing them separately to find out what will be the evolution of prices and thus know where can get the index value. The index as a whole and the sum of these two technical analysis reaches the appropriate conclusions are also discussed.

With respect to the fundamental analysis is performed exactly as in the previous case.

Stock indexes are a great way to make money with binary options, allowing even those who know nothing of bag can make money with it. However, due to its small complexity, it is recommended that they are not traded except by those who already have some experience in binary options or bag, because they better understand its operation.

 


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