Binary Traders Have to Step Carefully in Volatile Nigerian Market

The African Markets

In fact, for the last few weeks the African economy has been performing in a relatively disappointing way and binary traders are going through a tough time with very little earnings this season. Though the market in Nigeria is growing rapidly, experts opine that traders should measure each of their steps very carefully because buying shares with hot money has become a risky affair especially in markets like Nigeria.

The Market in Nigeria

The market in Nigeria exhibited a bullish trend by finishing 0.17 percent higher. The Nigerian Stock Exchange advanced by 55.21 points to finish at 33,298.74. The market capitalization also appreciated to N10.66 trillion after adding N18 billion. The chief gainers in the market were Lafarge WAPCO, Okomuoil and Nigerian Breweries that closed at N76.79, N35.10 and N37 per share respectively. Nestle, on the other hand, lost N8 to finish at N842 along with NewGold closing at N2,476 per unit after losing N4. Overall 310.04 million shares were traded in 5,620 deals at a value of staggering N2.98 billion.

Expert’s opinion

Nigeria economyMany traders may think that this is a healthy condition of the but experts are of a different opinion. Experts opine that traders may become too much confident at the good performance of the market and may start buying shares with hot money, but this is certainly not a healthy practice. In fact, in 2008 and 2009 the market crashed due to too much investment of hot money. People always try to buy booming shares and for this purpose they even take resort to borrowing money from banks and other financial institutes. But, if the market crashes the traders fail to have their desired gains and as a result lose the money themselves and are not able to return the borrowed amount to the banks. This can give rise to serious crisis like the one in Europe. Therefore, binary traders should always make their business decisions carefully especially in booming markets like Nigeria.

It is to be kept in mind that the market situation can change within the blink of an eye, a stock which is appreciating now can plummet a moment later. So, in order to gain profits in long run binary traders have to judge the market condition carefully and stay away from speculations.

Incoming search terms:
  • binary option that accept nigerians 2013
  • topoption binary in nigeria

, ,

No comments yet.

Leave a Reply