Binary options trading – Consumer Price Index

To judge the price as going up or down you should know how to judge the inflation process.  Consumer price index, employment cost index, employment situation, producer price index, productivity and costs, real earnings, US import and export price index, and more… you should know them to surf in the sea of call or put in binary options trading.

You should know how the different factors are wired in to your asset type and you should know how to make the decision based on the different market forces and their immediate influence in the economy of the asset type you might be dealing with.  Well, most of us in to binary options trading will know that there is something called consumer price index.  However, what does this consumer price index has to do with the call or put decision you are to make matters in the doing.

You understand that the consumer price index is important for the asset type you are dealing with and you have the index and you do not know what to do with it.  This is the most harmful of the stuff that can happen. 

The consumer price index reads like “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1  percent in September on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today.”  So, how do you react to this and what has this news to do with your decision making in binary options trading is a point to think of…

If you are planning to trade in September you should know about what this increased 0.1 percent data can do to your asset type.

An index is a measure of something in layman terms.  Consumers are those who are using it.  Consumer price measurement increases means the prices have gone up on an average for all the consumer goods!   So, what are consumer goods? Shelter index, medical index, grocery store food index, energy index, .. this means the price has gone up for all these products. 

Think if this price is within the support and resistance level.  Common sense* if the price is too high it is sure to come down! When? This is brain work for binary options trading.