Fundamental analysis is a technique that is used in binary options trading. It allows traders to look at available facts related to underlying assets in a way that will help them predict how the market will move. In order to apply fundamental analysis it is best for a trader to check for an example the so called “Balance Sheet” of a company.
A balance sheet is a financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
In other words, the point is to use surrounding facts in a way that enables the binary options trader to make accurate predictions on how that asset will move.
Sometimes traders are not aware that they are using fundamental analysis when making their predictions for values of assets, but they do use it. All sorts of official information on a company for example would be useful in order to make a conclusion what will happen with the company`s assets.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.