European indices tumbled the most since September, pulling back from their recent highs after a report showed the US economy (Q1 Growth Domestic Product) grew by just 0.2 per cent annual rate in the first quarter, a much slower pace than had been forecast and well below the fourth-quarter growth rate of 2.2 per cent.
The disappointing figure prompted the FTSE 100 to slip 1.21% to a three-week low. Other European equity indices were even more impacted considering the strengthening in the Euro currency, the French CAC40 fell 2.45%, the German DAX fell 3.21% and the European EURO STOXX50 fell 2.65%. The crash was even more severe for Eurozone equities as the European Union and the Greek Government are still struggling to find a solution regarding the financing of Greece and the cohesion of the currency union. We believe that the downtrend could linger considering the lasting pressure of these two concerns on equity stocks.
Sell Index binary options
The good news is that you can SELL European Indices with binary options. Indeed, one of the major advantages of binary options compared to equity stocks is that you can short an asset without any restriction from the regulators. Compared to binary options, equity stocks are difficult to short. Short-selling, which consists of selling an asset you don’t own in order to buy it back when the price is lower, is strictly regulated and supervised on the Equity market. With binary options, the broker will take the short risk and requirements for you and will enable to speculate on multiple binary options underlying assets on the upside as well as on the downside. You will never actually sell a binary option but you have the opportunity to buy a Low binary option that will generate profits if the underlying asset price goes down.
If you believe that the European indices downtrend will continue, you can buy a Low binary option on a major European Index. If you believe the Euro will continue to appreciate against the dollar, you can buy a high Binary option on the EURUSD. All our recommended binary options brokers are proposing such instruments with variable maturities. Feel free to have a look at our detailed review of OptionTime, 24option, AnyOption and TopOption for more information on each broker offer and select the one that best fits your trading profile.