Italy is a country that is rich in history, many of us are taught one aspect or another of that history in school so it’s really quite a surprise to learn that as a country that has documented history going back thousands of years the stock market is a relative infant at 207 years old, and the main index representing that stock exchange is practically embryonic at 10 years old, having been established in 2004, but behind all that relatively young age is still one of the larger and most profitable countries operating within the EU, and trading FTSE MIB binary options can be your ticket into history as ancient as that of the Romans.

Like many other Indices, successfully trading in the FTSE MIB demands an understanding in the local stock market from which it is comprised and understanding the Borsa Italiana requires at least a partial understanding of the Italian economy as a whole, after all, if you invest in FTSE MIB binary options without the most basic of understanding of the local economy you may as well be building a house of cards.

By sheer force of numbers alone, and before we even discuss any other factors, what you will likely need to know is that Italy is considered to be one of the major players in the financial world; it is a part of the G7 and G8 and has the 8th largest economy in the world in terms of GDP, that information is crucial to your understanding of the current financial climate – it is much harder for the world to stomach the collapse of such a nation than it is a smaller, less significant one, and the recent global economic crisis hit Italy extremely hard, at its peak, Italy was facing a national debt level which was 116% that of its GDP but because most of that debt was privately owned the blow was somewhat softened.

Since the crisis Italy’s government passed several rounds of budgetary cuts aimed at restoring financial stability, but those cuts are the source of constant friction between political and public figures, and with Italy’s history of toppling governments on a whim, the financial ground is never truly steady.

Italy itself is somewhat in contrast when it comes to financial viability – on the one hand, it has very little in the way of natural resources and it relies greatly on import for the majority of its power supply, however, it’s that very deficiency that has led it to develop various renewable energy solutions and become a global leader in that field.

In other areas – there is a clear cut division of the land, with mostly poor farmers and fishermen living in the south, and the richer more industrialized part of the country being up north.

We could go on for a very long time about other factors that influence Italy’s economy, but that’s not what you’re considering trading – the FTSE MIB was only founded in 2004, but has become the standard index referencing the Italian economy, the 40 companies housed in the index are among Italy’s biggest and best in a variety of industries, from Unicredit and Unibank to Fiat and Campari, all companies are faced with a reality that you, as a trader of binary options must face from time to time – When is the right time to invest?

If we had a simple solution to that question we would be on route to our private beach, with a margarita in hand, but we can only advise you as to the possible means of making a profit on FTSE MIB binary options: keeping an eye on political stability is key – any political strife can have an immediate impact on the market place, you would also be best served by keeping a close eye on any energy related news, specifically the prices of gas, oil and electricity – while Italy has been making efforts into becoming less dependent on the importing of electricity, it is still the world’s largest importer of power, which makes any shift in the supply chain, for better or worse, critical to the financial state.

All of those, and many more factors can go into determining the direction the FTSE MIB takes, but you, as a possible trader of the Italian Index, you would be best served by having patience, and waiting for the right moments to strike and profit.