Forex trading in binary options has been popular since the Securities and Exchange Commission sanctioned the first binary options, in 2008. Many traders still actually believe that Binary Options are all about currency. In reality digital options are available on stocks, commodities, indices and currencies. One popular Forex that is available on the broker platforms is the USD/CAD binary.
America and Canada are two important powers in the world economy. As next-door neighbors one would expect them to be influenced by similar world factors. However, the US is a very different beast to Canada and is engaged in very different activities.
America is the largest economy in the world despite the financial crisis that has shaken the world. The US is headquarters to many of the most influential organizations in the world across a diverse range of sectors. The company is heavily involved in manufacturing, pharmaceuticals and technology. The NASDAQ and S&P 500 are often used not just as barometers of the US economy but also for the whole world. As a massive consumer America is also intimately linked to the productivity of export countries, such as Japan.
Canada is a natural resource rich country that has performed well despite the economic crisis. The Canadian banking system has historically been very different from that of the US, with tighter controls and more incentive to pay off ones mortgage. In 2008, 4.5% of US mortgages were in 90-day arrears compared to a figure of 0.27% in Canada. Perhaps all of this is behind the stability?
In the past the USD was worth far more than the CAD. However, over recent years it has dropped to below 1:1. Traders have enjoyed the volatility between the two currencies and many binary options traders spend their days trading this currency pairing. There is plenty of information and news to cause price fluctuations and the savvy trader can make high returns from USD/CAD binary options.