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My 2021 Forex Forecast Trades

January 4, 2021 by

To avoid posting my predictions for the currency pairs in 2021 without actually committing to them, I have entered seven trades based on my Forex forecast. Unfortunately, I couldn’t execute all of the forecast trades because the broker I used (Binary.com) doesn’t provide Ends Between binary options for NZD/USD and oil instruments. Eventually, my portfolio consists of the seven Ends Between options that expire on December 31, 2021 (at the end of the daily trading session): EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF, and gold. You can see the trades on the screenshot below:

Binary option trades based on my 2021 FX forecast

The cheapest contract was for my USD/CAD forecast, which means that this forecast is deemed the most unlikely one by the option price calculating algorithm. Conversely, the likeliest (and the most expensive) contract is for my EUR/USD forecast. Also, most of the trades this time are pretty close to $50 option price, which means there is about 50/50 chance of forecast going the right way. Of course, these pricing algorithms have no clue whether such events as the coronavirus pandemic are awaiting us this year.

If you want to share how you are acting on your currency forecasts for the year 2021 or if you have some questions about my trades, please feel free to use the commentary form below.

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