Saturday, April 13, 2013

BINARY OPTION BASICS


What Are Binary Options?
Binary Options are an exciting way to trade by predicting the market price direction of currencies, stocks commodities and indices over a period of time selected by the trader. Binary Options are simple and can have only two possible outcomes: either the option expires in the money (your prediction was right) or out of the money (your prediction was wrong). The potential payout for each outcome is known when entering a trade, making Binary Options ideal for short term trading. http://go.stockpair.com/visit/?cid=341851&r=478

Trading binary options is the latest, most profitable way to trade on the global markets and trading that allows you to earn maximum profit in minimum time.  When you click on an asset on 24option’s platform you are choosing to make an investment in your future.  Binary trading is easy, quick, and best of all, profitable. http://option.go2jump.org/SHUtv

People all around the world want to know what binary trading is and how they can use it to earn extra income.  The binary options world has opened up the world of financial markets to the entire world and has simplified the once complex world of global finance.  Binary options trading allows you, the trader, to declare how much you want to invest in the market and not the other way around.  With binary options trading, you are finally able to access the world of global finance without having to spend years in university or pay exorbitant fees to a broker whom you do not know.  With binary options, you are the trader and you make the decisions. 
The unique aspect of binary options trading is the fact that you know exactly how much you can earn with binary options.  There is no leverage or beating the spread like there is in forex; rather, the possible return that you can earn is clearly explained before you make the investment.  Gone are the days of guessing how much a stock will earn you in the next quarter, or how much you can earn if the USD spikes against the GBP.  Now with binary options you can confidently invest knowing how much you will risk and how much you will earn. 

Binary options offer a simple alternative to the complex and daunting world of global finance.  Why invest in funds and markets that rely on complex mathematical models that even the experts don’t understand?  Instead, invest with binary options and you can clearly understand the investment that you’re making as well as the risk and reward.  It’s simple, with binary options you decide what you think the market price of an asset will do: will it rise or will it fall?  That’s it!  Binary trading is very simple and very lucrative, which is why more and more people are flocking to trade them every day. http://partner.binaryoptions-affiliate.com/signup/18771

Binary Options Trading Example
You open a 60 minutes trade of $1000 on the EUR/USD predicting the price will go up. The return on this option was 80% if the option expires In the Money (you were correct) and 0% if the option expire Out of the Money (you were wrong) .
If the EUR/USD went up, meaning the price of EUR/USD in expiry is higher than the price when you opened the trade , your option expired "In the Money"  and your payout is $1800, your investment is $1000 and $800 is your profit (80%*1,000)

1.     If the EUR/USD went down, your option will expire "Out of the Money" and you will not get a payout.
2.     Important - The Stockpair platform enables, in many types of options, to close the position before the expiry.

Benefits of Binary Trading:
1. Controlled Risk - payout is known when entering a trade, no margin calls or leverage.
2. Intuitive and simple - appeal for every trader.
3. Profit Profile - small movement can bring high returns, unlike traditional trading.
4. Choice - variety of markets, currencies, commodities.
5. Trading Style - From short term to long term, the trader define the period.

No comments:

Post a Comment