The USD/CHF currency pair is fairly popular among binary options traders. It isn’t as volatile as the EUR/GBP and the Swiss franc is known as one of the easily predictable currencies. The main reason for this is Switzerland’s good economical climate. The Swiss franc becomes more popular among traders when the economical or political climate is unstable. However, they lose interest in it as soon as the volatility decreases.
The Swiss franc’s stability during times of turmoil may be seen as a huge advantage of the trader, but the American Dollar also has a stable value during these times. Therefore, predicting the movement of the USD/CHF isn’t as easy as you’d expect.
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For a beginner binary options trader, it may be difficult to spot the obvious signs which forecast the Swiss franc’s value. Here is a little tip from us – the franc has always been known for being correlative with the Euro. Usually, if the Euro’s value goes up, the Swiss franc will soon follow, so keep that in mind if you notice that the Euro’s value changes drastically. This has happened many times through history but remember that the Forex market isn’t fully predictable and there will be times when the correlation between the two currencies won’t help you profit.
Binary options traders tend to stick with the most popular currency pairs like the EUR/USD and the EUR/USD and the EUR/GBP, but the USD/CHF pair is also used by many traders. However, predicting it may be a bit tricky in some cases, because the low volatility of both currencies may leave you out of business for days. If you are a beginner, then it is best to try with another currency pair and get familiar with the basics of currency binary options trading. Once you are sure that you have the necessary knowledge, you can make the transition to USD/CHF binary options trading.