Studying an index is not as difficult as it may seem, it just requires a tad more patience than you may be accustomed to when trading other binary options, and while the movements may be quicker and sharper than those of other stocks, commodities and currencies they can also be predicted to a somewhat greater extent and the reason is quite simple – most things about an index’s movements are derived from the movements of the stock exchange it represents, and those movements often originate from things that effect that country’s economy.
It is that very nature of the Index that makes trading it very exciting and provides for multiple profit opportunities.
And if, as a binary options trader, you thrive on sharp movements and a marketplace that is volatile and excitable to help you make profits, you need not look much further than the Tel Aviv 25 index and the Israeli Stock market it represents.
We’re quite positive you are all well aware and have varying opinions about Israel as a country and its varying political actions throughout history, but none of those opinions should deter you from considering making a binary options investment in the Tel Aviv 25 index for one simple reason – the Israeli economy, as a whole, is quite formidable, and yet, for many reasons, is extremely volatile, providing you as a trader with all the opportunity you may need for profits.
The Israeli economy is driven by a great many factors, most of which are quite easy to grasp – security (or lack thereof) is always paramount and is hard to win and even harder to maintain for the tiny nation, to make things even more complicated, Israeli politics tend to be highly unpredictable, and the stability of most elected governments hangs by a narrow thread during most times.
In addition to financial and operational strife, one must consider the position of the Israeli currency itself as a factor, Israel’s closest ally is the US, and perhaps as result of that close knit relationship, the Israeli Shekel is closely tied to the fortunes of the U.S dollar, for better or worse, and that fact often impacts Israel’s economy on multiple levels.
When one takes into account the great variety that is found in the Israeli economy it becomes even easier to understand why the market as a whole and the Tel Aviv 25 specifically can be lucrative – the Israeli economy is considered to be extremely tech savvy and has produced a multitude of technology startups that have either gone global on their own, or have been sold to world leaders such as Google, Microsoft and others. Companies like Intel, Microsoft, Google and others maintain large scale R&D operations in the country and even more companies are going global with each passing day.
But that is just one aspect of Israel’s economy; the country is also a great exporter of fruits and vegetables, mostly to European markets, and maintains a strong presence in worldwide chemical and pharmaceutical markets through large scale corporations based there.
The Tel Aviv stock exchange currently lists over 600 companies and over 60 of those are dual listed companies in other stock exchanges throughout the world.
While you may be somewhat reluctant to trade binary options on a relatively small Index, you may consider this – The more moves an option makes, the more entry and exit opportunities may present themselves, add a constant influx of funds and you get a recipe for profits, and that is precisely what the Tel Aviv 25 index is all about.