Both share traders and traders having specialized in binary options may follow the current developments in the USA with great interest. There, -when merging- relatively high premiums are paid on the current prices- those who are right on target with binary options can earn a lot of money within a very short time. Though the markets in Germany especially benefit from the fact the economy is likely to recover in the next months.
High premiums show great potential
On Wall Street, there is a real merger fever at the moment. First, Warren Buffet had caused a stir with his company Berkshire Hathaway as he had announced the purchase of the food giant Heinz last week. In case the takeover is successful, the shareholders of Heinz may strongly benefit. The purchase price before the announcement of the plans corresponded to a premium of clearly more than 20 percent on the share prices.
Of a corresponding magnitude was the alleged takeover of the seller of office products OfficeMax by the second-largest market provider Office Depot. Indeed, there was no information given yet concerning a possible purchase price but the shares of OfficeMax already increased by 20 percent. The magnitude of these premiums shows that there is currently a great market potential. Whether this can be realized or not is not sure at all, especially the development of the economy may play an essential role in this process.
Good data for the German economy
Those who primarily prefer German default values as underlying assets when trading with binary options should firstly pay attention to the economic data. After the German economy has rather badly developed over the last few months, there recently were unexpectedly good figures of the Mannheimer Centre for economic research (ZEW).
In February 2013, the analysts and investors polled by the ZEW were not that confident since April 2010. Even the head wind caused by the still smouldering crisis does not seem to influence the economy in a negative way.
A growing economy in Germany may also have an effect on other countries.
This became clear, for example, as the ZEW presented their figures which also lead to profits in Paris, Madrid and Milan. In the next weeks, traders who want to earn high returns with binary options should pay more attention to when figures concerning the economic cycle are due.
Around such reports you can often observe relatively high fluctuations which primarily depend on the expectations made before.
Furthermore, of course, political events do also play an important role. For example, the Italian parliamentary elections have the potential to strongly influence the prices on the markets in Europe in the short term. Depending on the outcome of the election, the influence could continue for a few days or weeks. Current news concerning the corruption affair in Spain could also cause movement on the share markets and currency markets, as well as the possible breakdown of one of Spain’s largest real estate groups. According to various reports, this event is likely to be imminent and could have an effect on the mood on the markets since it is representative for for the economic situation in Spain.