Binary options can be put on virtually any trend in any financial markets – even on something as mundane as jobless claims. Jobless claims are integral parts of statistical reports on economic data, which make them important factors in a number of financial markets, including forex. Jobless claims are made by the unemployed people in a country – their numbers constitute trends, statistically speaking, and as such make a foundation for binary options to be placed on (yes, people actually do that).
Types of jobless claims
Jobless claims can be classified as initial, coming from people fresh out of work, or continued, made by people who have been unemployed for quite a while. The initial reason for these to become a part of reports on economics of a country is to help evaluate the labor conditions and the unemployment rate – which makes them a vital economic indicator. Well, as it turns out, their number fluctuations also make a good baseline for a trend to predict and profit from. Initial jobless claims are quite unpredictable as well, which only acts as a wild card for the binary options holders. When people lose jobs on a massive scale (like a recession), the trend is rising while in case of an economic boom people find jobs so the trend starts falling – all this in addition to normal fluctuations.
Binary options betting
Binary options can be placed on the results of jobless claims reports which happen on a regular base, in a number of financial markets. Traders can analyze reports, trend lines and news and guess if the numbers will rise or fall – placing call and put binary options respectively, based on their predictions. The remaining elements are identical to other binary options; in fact, the only difference is that the underlying is not a stock, index or a commodity but a statistically predictable trend. If you win, the payout is 100 dollars – if you lose, the payout is 0. The premium is based on the probability – the more likely the outcome, the higher the premium; and if you feel lucky, you could always opt for a less likely outcome with a smaller premium and larger profit. All you have to do is be right.
Jobless claims make a shaky foundation for binary options due to their unpredictable nature, but the fact that winnings and losses are capped at 100 dollars per binary option makes risks manageable to say the least. You determine how much money you want and how much are you willing to risk to get it. If things go sideways, you can always try and sell the options to cut your losses – just make sure the market is liquid enough or you are stuck with them, like they were a continuing jobless claim. Well, not really, because your losses are still capped so you can begin anew.