Lately, indices around the world have been feeling the pain associated with a possible Brexit. However, the most recent polls show that the Brits seem to be having a change of heart, and that is sending indices up in a big way today. Below, we’ll talk about what a Brexit is, what recent polls are saying, what we can expect to see, and what binary options traders should be watching out for.
What Is A Brexit
The term Brexit is actually a play on words. It is simply defined as a British Exit. However, if you follow my writing, you know that I never stop at the simple answer. The term Brexit describes the action of the UK leaving the European Union.
On one side of the fence, some believe that the relationship between the UK and the EU is causing strain on the UK economy. The truth is that this notion makes sense. At the end of the day, because of the close relationship between the UK and the EU, any economic hardships experienced in Europe will likely bleed into the UK economy.
On the other side of the fence, there are plenty of people that believe that leaving the EU would cause more economic pain. The truth is that if the UK does make the decision to exit, it will have to renegotiate global trade agreements, which would in turn cause economic hardships around the world. Not to mention, the action would send global indices spiraling downward.
What Ne Polls Are Telling Us
Over the past couple of weeks, we’ve watched as global markets have struggled. This was the result of polls in the UK showing that more consumers are supportive of leaving the EU. However, a recent poll shows a major shift in tides when it comes to UK consumer opinion.
A recent poll, known as the Survation poll shows that more UK consumers are hoping to stay with the EU. According to most recent data, 45% of the respondents to this poll have said that they would rather stay with the EU. On the other hand, 42% of respondents are hoping that a Brexit happens, while 13% are undecided.
Given the new results from the Survation poll, there is renewed hope that the UK will remain part of the EU. However, things really can go either way.
What I’m Expecting To See
Honestly, at the moment, it’s a toss up. The truth is that there’s only so much that we can get from polls. When polling an audience, companies try to make sure that the polls are not biased, however, the audiences associated with the polls are usually tailored to the publication running the poll. As a result, what we seen in the end tends to be skewed data. With that said, there are plenty of polls saying that UK consumers will likely vote for a Brexit while recent polls say the opposite. All in all, it seems like we’ll have to wait until the vote on Thursday to get a true picture of what’s likely to happen.
What Binary Options Traders Should Watch For
The reality is that this can go either way. Nonetheless, no matter how it goes, it will likely lead to great opportunities for binary options traders. With that said, here’s what you should be watching for…
- A Yes Vote – If the British people do vote for a Brexit, it’s likely to lead to major declines in indices and stocks around the world. It will also likely lead to big gains in gold and silver. In this case, binary options traders should be watching for strong put option opportunities on stocks and indices as well as strong call option opportunities on gold and silver.
- A No Vote – If the British people decide to vote against a Brexit, it will likely lead to big gains in the global market and declines in gold and silver. As a result, binary options traders should be watching for strong call option opportunities on indices and stocks as well as strong put option opportunities on gold and silver.
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