Binary options are traded on a number of different asset classes. Perhaps one of the most difficult to understand for a beginner is a futures contract (FC). FCs are available on exchanges all over the globe. They assist us as traders in comprehending how experts believe an asset is going to fluctuate. They do actually operate as an asset for the purposes of trading. With the DAX Futures Contracts traders can view anticipated levels of the value of the DAX 30 in the future.
DAX Futures are listed on the Frankfurt Stock Exchange and have a particular expiration time and date. This expiration date is included as part of the ticker symbol like this: DAX FUT JAN14. DAX Futures are traded from 8AM to 10PM CET. The daily trading volume varies but can be around 200,000 contracts and the range can be about 80 points (160 ticks). The market is open every day, Monday through Friday, except specified holidays.
Essentially the level of a FC is controlled by market sentiment. DAX futures are therefore influenced heavily by the major political and economic events in Germany. Futures are an interesting way for binary options traders to use macro research to make their predictions.
Futures are a means by which binary options traders can step up their research into market analyst opinion. By reading widely and consolidating opinion it can be possible to make consistently good decisions. Of course sometimes all of the experts get it wrong and it could be your opinion that brings home the trade gains. These futures can have quite long expiration dates so can form an interesting part of a binary options trading portfolio.