Most binary options traders are well aware of one simple truth – trading binary options is all about speculation. Sure, some of it might very well be extremely well educated, but it remains speculation.

But here’s the twist – Speculation can mean profits for a savvy trader, and while most commodities, Indices and stocks are traded in certain ways that are a reflection of how the company or commodity is actually doing (even in binary options – the reaction is to actual movements) there are rare instances where a tradable asset while reflecting something, was created purely to allow traders a way to hedge their other assets or trades, such is the case with trading NASDAQ 100 futures binary options.

Imagine this, if you will – when trading binary options, you aren’t trading actual stocks, you’re trading a virtual representation of that stock, now, if you happen to be trading Nasdaq 100 futures binary options, you’re virtually trading on something that is a virtual representation of something else – the Nasdaq 100 futures are actually representation of certain stocks within the Nasdaq composite index itself.

Why bother with the complex explanation? Simple – trading Nasdaq 100 futures binary options requires an understanding that the basic premise of the trade is different – you cannot fully rely on underlying conditions and predictions as you would for other assets, in this case you need to consider the direction of the Nasdaq composite itself, with its many components and in addition, consider the positions that traders may take on the Nasdaq 100 futures to offset any potential losses they may incur on the main index.

But do not let the apparent complexity of this put you off trading Nasdaq 100 futures binary options, because the reality may be much simpler than you might suspect.

The first thing one must realize is that there are very big forces at play on the futures market, in fact, most major trading houses invest a spectacular amount of money in developing algorithms to correctly predict the direction the futures market takes, often devoting more to that aspect than they do to staffing actual trading desks, the point? The hard work has already, and is already being done – you can achieve quite a lot by mimicking the positions of large trading entities.

Secondly – there is an unbelievable fluidity to the futures market, anywhere from 200,000 to 600,000 contracts can change hands on a daily basis, which makes any corrections you may require quite easy to make, on pure volume alone.

Lastly – You can predict the future (sort of): when trading Nasdaq 100 futures binary options you know exactly when the actual contracts expire, because that only happens 4 times a year in the real world – near the end of March, June, September and December. When you are aware of that fact, it is quite easy to see why the trading volume increases around those times, and if you know that an expiry deadline is upcoming, and that the market makes moves around that time, well, all you really need to do is get ready to pounce when the right chance presents itself.

There you have it, 3 basic ways to trade Nasdaq 100 futures binary options, with ease, all that’s left now is to make the right investment and wait for the profits to come rolling in!