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Binary Options Trading
Binary Options trading, is all about investing your money on a particular asset, predicting whether the price of the item will either go up or down within an hour a day or even a month. With binary options trading, the call or the put option has to be exact and if it is not, you will loose the money you invested in it or in some cases you will receive a percentage of the money you invested back, it depends on the broker which you choose to trade, so before you start to trade take a look in our website in order to get any information that can help you to start your way in the binary options trading world more easily.
What are Binary Options
A binary option is a particular option that pays either a fixed amount or nothing. The amount that an individual gets at the end of the day is often dependent on whether a particular condition is met by the time the option expires. There are two main types of binary options in the market; the cash-or-nothing binary option and the asset-or-nothing binary option. In the cash or nothing binary option, the trader gets a fixed amount of pre-determined cash whenever the option expires in the money. On the other hand, the asset or nothing binary option pays the trader the value of the underlying security or asset when the option expires in the money. The idea behind binary pitons is that there are only two options given to the trader thus the name binary. A trader can choose either option and depending on the result either stand to make money or lose it altogether.
1402$ Profit In 5 Trades
These are the main binary options that brokers in the binary market provide to their clientele. However, with the growth of the market, new binary options are coming up to accommodate the different tastes that traders and players in this market are constantly acquiring. Some of the other popular binary options include: all-or-nothing options, digital options and fixed return options. The all or nothing binary options and the digital options are normally offered in favour of forex and interest rate markets while the fixed return options are more common on the American Stock Exchange.
What differentiates binary options trading from the rest of the rest of the market is the fact that in the trade of the binary options, the payout that a particular trader expects is already predetermined. The return on a particular contract is normally determined before a purchase is made. In addition, binary options can be bought on virtually any financial instrument that is in the market. It can be also bought with bias towards either direction; whether a call/up option or a put/down option. As such, it provides investors with relative freedom on what they can buy and how much of it they can buy. Another unique factor in the trade of binary options is the fact that they have a fixed expiry period. When a binary option is bought, the traders know just what amount of payout to expect if the contract expires in the money and exactly what time the trade will expire. In essence, tit is a fixed time trade.
With the recent success that the trade in binary options has provided to the market, it has virtually overtaken most of the other trading platforms. Its simplicity and wide repertoire in the options for trading make it particularly attractive not only to mainstream investors but also new investors willing to try their hand at making real money. It is a platform that does not rely on concentrated financial knowledge, rather, it rests on the haunches of creativity and smart business practices. Binary options came into the market in 2008; however, from the look of things, the platforms are here to stay.
The Best Method For Making Money With Binary Options
While there seems to be an endless number of trading tips, strategies, and shortcuts, I’ve found Trend Monitoring to be the most reliable. This method is widely popular with professional traders and is well known for its consistency and effectiveness. At its core, Trend Monitoring relies on a very simple fact: Asset prices follow trends! This may seem obvious to many, but the real strength is the ability to identify the trends – this is where Trend Monitoring comes in to play. If the recent price history of an asset shows a significant and constant increase, the probability that the asset’s value will continue to rise is greater than the probability of it going down, and vice versa. Applying Trend Monitoring to your Binary Options trading will result in increased profits.
How to Invest the Right Amounts
Some trades are won and some are los, and anyone offering a 100% success rate should be heavily doubted. Trend Monitoring is indeed a great way to increase profits, but it does not guarantee that every trade is successful. It will, however, help any trader increase profits and reduce his losing positions. Using Trend Monitoring while trading binary options will help you tip the tide in the right direction: more winning positions and less losing positions. Ultimately, this will lead to higher profits. To be safe and profitable, it is recommended to stay true the rule: Each position should not be more than 5% of your total capital.
If you have $200 in your account, each open position should be $10 tops
If you have $500 in your account, each open position should be $25 tops
If you have $1,000 in your account, each open position should be $50 tops
If you have $2,000 in your account, each open position should be $100 tops
If you have $5,000 in your account, each open position should be $250 tops