Digital options

Money Management Trading Ensuring the Trade Success

Money management trading means how well you use the information to handle the loss and profit in a trade. For options trading you need to consider several things to manage your money More »

Beginners Guide

A Beginners Guide towards Binary Options Trading

Binary options take a new standing in financial trading with its simple and easy to use policy. Binary options trading is based on only two outcomes which is either an increase or More »

Binary options markets

Useful information concerning Forex binary options

Forex binary options are one of the investment techniques used by market participants to make a profit. Purchasing Forex option, you are entitled to sell or buy certain types of currencies at More »

Touch options

Touch Options

Nowadays, the foreign exchange market is more accessible and open than in the past. In the earlier times, only institutions such as the central banks and top financial companies were able to More »

binary trading options

Binary Options vs Forex

When considering daily turnover, the forex market is by far the largest market in the world, eclipsing all the stock markets of the world combined.  Through the forex market, financial institutions, corporations, More »

Category Archives: Getting Started

Money Management Trading Ensuring the Trade Success

Digital options

Money management trading means how well you use the information to handle the loss and profit in a trade. For options trading you need to consider several things to manage your money properly. The basic money management trading strategy is never to risk more than the expected profit in a trade. The best percentage of risk for an option trade is suggested as 8.5% by many expert traders.

The winning chances of any option trader are dependent on the money management trading. You can definitely increase those chances if you have the appropriate information for effective binary options trading. The trader has to align every trade with money management trading techniques to increase profitability in this business.

The money management trading technique is considered as the prerequisite of successful options trading. Any trader making great profits from binary option trading can lose them instantly in a couple of bad trades. So making every trade successful is the major concern for option traders, to run successful trading more continuously. This goal cannot be achieved without proper money management trading knowledge. It means that you need this every time you are going to trade in binary options.Digital options

The best thing about money management trading is that it gives the trader the confidence to trade well most of the time. For a binary options trader self-assurance is the key to success. It is acquired as money management trading puts the trader into more through research and analysis every time before the trade. Never trade in a binary option trading if you are not sure about any aspect, just wait for the time until you are sure about everything.

Another aspect of money management trading is to diversify. That means always try different things and moves in option trading. Trade in different ways when it comes to binary options trading, for example trading on different markets and assets etc. Now if a trader doesn’t have any idea of money management trading, the chances are he or she will put everything in just one way so there will be more chances of greater losses.

The trader following the money management trading process knows the importance of following the trends and making decisions based on historically tested results. It’s an essential part of binary options trading to keep an eye on current and previous trends of the market. And finally the money management trading means expecting loses as well. There are some situations where the binary trader also has to face loss, but the important part is to know the level of loss you can bear in a trade. This can only be identified by following the practices of money management trading techniques.

Remember, money management trading is an essential part of a trade success. So try to make your trade process sound before actually jumping into binary options trading. Use money management trading tools to ensure success at every level.

A Beginners Guide towards Binary Options Trading

Beginners Guide

Binary options take a new standing in financial trading with its simple and easy to use policy. Binary options trading is based on only two outcomes which is either an increase or decrease. A beginner can easily understand the movement of the underlying asset through the help of the trading platforms.

Binary options trading involve simple trading by taking a call or put. The financial market is often associated with complex theories and statements. They are hard to understand and implement. Binary options are a feasible option for new traders who are cautious about their investment. They offer high profits with minimum investment.

Binary options trading is a financial trading method where the final outcome is dependent on the observation of the trader on the market and his decision to take a call or put. The trader has to guess the direction of the asset at the expiry and if the chosen direction coincides with the final asset value, then the trader is bound to make a profit. Binary options offer instant results and also a potential to make huge profits. These options can expire in a day, or month, or even an hour.Beginners Guide

The market is subjected to high fluctuations and there is a high uncertainty involved in choosing the right option. The risk involved in high is the trader doesn’t research about the behavior of stock in a company and blindly chooses an option. The trader may lose his entire investment if the prediction goes wrong. However, there are different trading strategies which can help the trader in making a right move.

Binary options trading is achieved mostly through an online trading platform. There are many online trading platforms or brokers which offer trading account for easy transaction of binary options. These online trading platforms are not only reliable; they also offer high protection and security of your assets. They are simple to use and provide the convenience to trade your binaries anytime and anywhere. These online trading platforms offer a fast and efficient way to close in a trade upon expiry of the binary contract. They even offer easy payoff upon expiry.

Traders who are new to binary options trading can join trading platforms to understand the movement of the market and stocks. The online trading platforms provide free demo trading account, which helps new traders to know the risk involved in trading the binary options. The trading platforms sometimes offer risk free environment for first time traders, where the trader can choose an option without worrying about the losing his investment. If the asset moves in the direction predicted by the trader, then the trader can claim his profit. If the asset doesn’t move in his direction, the trading platform will refund his investment. Only few trading platforms offer this provision.

Binary options trading is not complicated when compared to other financial trading methods. It depends only on the movement of the asset at the time of expiry of the contract. For beginners, it is advisable to invest in small amounts in order to reduce the losses. They can carefully study the market movement to determine how and when to make a move. Once they are able to grasp the basics of trading binary options, they can move on to investing high amounts and taking up strategies to prevent unexpected losses.

Useful information concerning Forex binary options

Binary options markets

Forex binary options are one of the investment techniques used by market participants to make a profit. Purchasing Forex option, you are entitled to sell or buy certain types of currencies at a fixed rate. If earlier this service could have only been used by the big banks and corporations, today brokers offer it also to private clients.

Forex options keep the exchange rate for some time. The timeline varies from 1 to 6 months. Along with it, options set a certain amount of currency to be sold in the market. An investor can sell the options at any time within a specified period of time. When buying Forex option, investors expect that the exchange rate by the end of a specified period will decline. For example, an investor gets 1000 options at the rate of USD / GBP (U.S. dollar against the British pound sterling) 0.5074 with a fixed term equal to 5 months. A trader who buys Forex options hopes for the depreciation of the pound sterling or the rise in the price of the dollar. If during the stipulated period the ratio of currency stays at 0.5813, the operation is profitable. You sell the pound sterling at a favorable rate, while the rest have to pay another bet. If your deal is not so successful and the value of the pound relative to the option’s rate increases, a person who bought these options is not obliged to sell them. The main brunt falls to the collateral amount paid to purchase Forex binary . After completion of the transaction a credit is coming back fully. Rates vary depending on the type of the currency and the amount of currency purchased.

Forex binary options provide an alternative to the standard options. This type of binary options is the trading of changes in the foreign exchange market, but with fixed payments. Payments for options more often are represented by the formula “all or nothing”, i. e. the investor receives either big profit (if his assumptions concerning the market changes are correct, or 10% – 15% refund of the amount of initial investment (if the transaction fails). Forex Binary Options do not require the investor to decide on the execution of the option. Making a profit is based on the Forex market indicators that either reach or not the certain pre-approved level.

It is possible to make a profit by purchasing Forex options just before the end of the deadline. That means the acquisition of Forex binary option when the price reaches desired values or the parameters are close to it. If by the end of the term your options do not achieve the desired values, you lose the deposit. Buying options just before the end of the deadline will not cause you significant damage, but this deal has greater chance of obtaining the desired result. And the increase of small bets quantity will increase the likelihood of success.Binary options markets

Another way to make a profit is based on the game with time. Acquisition of Forex binary shortly before the end of the term may adversely affect profitability. The more time you have left before the end of the auction, the more chances you get to earn money. Using the Forex binary options is a great way to make a profit, but you should use them with caution. Novice traders can forget about the risk associated with such dealings, and experienced investors can succumb to gamble and start to bet recklessly and make acquisitions, relying on “luck”. Avoid unnecessary risks. Check out all the possible strategies and use them to improve your chances of gaining profit.

Touch Options

Touch options

Nowadays, the foreign exchange market is more accessible and open than in the past. In the earlier times, only institutions such as the central banks and top financial companies were able to trade on the forex market, but now anyone who is interested in forex will be able to trade.

At the moment, the forex market is the biggest and among the most compelling markets worldwide. A turnover of about $4 trillion daily definitely speaks for itself when it comes to showing the size of the foreign exchange market.

Throughout the financial meltdown that swept the entire world during the last couple of years, this market was not impacted. On the other hand it grew even larger. Additionally, the online forex industry continues to grow because the supply and demand increases. On one hand the amount of online trading platforms keeps growing, whilst on the other side the amount of individuals keen on forex trading is increasing extremely fast.

Binary options is the new form of trading and its far more attractive than the traditional forex trading. It is much easier to trade binary options, plus the time frame is shorter and the profits are greater. These are only some of the unique features which make binary options so appealing for both experienced and amateurs traders.

There are several types of binary options, but for this write-up, let’s take a closer look at the touch options. This is one of the available trading options offered by OptionBit.

The touch options will reach its expiration date in-the-money when the price of the asset gets to a fixed barrier at the time of expiration. The price barriers could be lower or higher than the existing asset price once the option is purchased, allowing traders to capitalize on the conventional omni-directionality that binary options offers. In addition, OptionBit offers variants on Touch, such as Touch Down and Touch Up.

Trading Example:

So, you have decided to try your luck at touch trading. When you check for the available assets, you opted to trade Microsoft touch option. Microsoft asset was selected for binary trading and its set to expire in thirty minutes. Based on the current asset price, the Touch Down and Two Up options are open with fixed strike prices.

You are convinced that the asset price would touch the highest strike price before the expiration date and so the Touch Up option was selected. However, if you are thinking that the price would touch at a lower strike price, then the Touch Down option should be selected.

In case the contract expires on Microsoft price touches the option that you select, this would mean that you end up in-the-money and get to make a high return on your initial investment of about 75 to 81%.

Binary Options vs Forex

binary trading options

When considering daily turnover, the forex market is by far the largest market in the world, eclipsing all the stock markets of the world combined.  Through the forex market, financial institutions, corporations, and even retail investors are able to convert currencies and make profits from currency rate changes.  The forex market has been growing by leaps and bounds over the past decade as more individuals get involved in the highly profitable activity of forex trading.

Binary options, on the other hand, have a quite small market, but it too is growing by leaps and bounds.  Having been established for retail traders in 2008, the binary options marketplace has seen exponential growth that is expected to continue for some time to come.  Binary options enjoy their popularity thanks to the ease of trading and large profits to be had.

Binary Options vs Forex

Forex and binary options do share some similarities, but they also have many differences.  This makes them difficult to compare, but one of the draws of binary options is that they are so simple to trade when compared with forex.  There is no need for new traders to learn the complex language required of forex traders, nor will they need to concern themselves with spreads, slippage and requites.binary trading options

Binary options also offer very high returns in a short period of time when compared with forex.  While it is true that a highly leveraged forex trader can make large profits in a matter of days or weeks, binary options profits can be calculated in a matter of seconds.  Some binary options have yields as high as 85% in as short as 30 seconds.  No matter how much leverage is used, a forex trader will never see those types of returns so quickly.

Investment risk is another difference seen between binary options and forex.  With binaries, there is a fixed and known risk since the return and potential loss are both fully known when the trader purchases the option.  With forex the risk is unlimited and it is possible for a forex position to completely wipe out a trader’s account.  Just one trade gone wrong in forex has the possibility for millions of dollars in losses.

Forex markets trade 5 ½ days, 24 hours a day, but binary options trade only when markets are open.  This means there may be limited opportunities to trade at some times during the week.

One of the greatest differences is the fact that binary options give a trader access to a huge array of assets.  While forex traders are limited to trading just currencies, a binary option trader can also speculate in commodities, equity indices, and even individual stocks.  Plus, they still have access to a large number of currency pairs.

Even with all their differences, there are some similarities to be found with forex and binary options.  Both are traded through online accounts, and both are available to traders across the globe.  They also remain similar in that both forex and binary option accounts can be opened with as little as $100, making them very accessible to the individual trader.

With all the above differences, still forex and binary options have some similarities.  Both are available to traders all over the world, and both are traded online.  And both require just a small amount of capital to get started.

Index binary options

Index  Options

Index binary options are options with underlying assets of indices, consisting of several shares, representing a portfolio of stocks or commodities, grouped according to certain principle. The advantage of index binary options trading is that they allow you to participate in investing in multiple market segments with a single deal, and often through a single transaction.

In this regard, many investors prefer to trade index binary options because of the possibility to achieve the same level of diversification, as they do working with individual stocks, concluding separate deals that would require far more transactions and, therefore, would have cost more.

Now when we understand the technical side of the question, let’s get to practice concerning index binary options. Let’s take, for example, the S&P 500 index that includes 500 leading U.S. companies in key industries that alone provides 75% coverage of all U.S. stocks. Index binary options trading allow the investor to make investments in the market efficiently and without any additional expenses, instead of betting on every single component. This can be useful for investors who have an idea of the movement of markets, but who do not want to worry about individual stocks and commodities. Moreover, you can hardly find a man who owns and effectively controls 500 shares of the S & P 500!

Index binary options trading also allow investors to trade in certain segments of the market on a larger scale. For example, we can offer the following indices specific to certain market segments:index binary options
DAX (Deutscher Aktien Index) – represents 30 largest and most liquid German companies working on the Frankfurt Stock Exchange.
FTSE 100 (Financial Times Stock Exchange), also known as «footsie» – represents 100 largest British companies trading on the London Stock Exchange.
CAC (Continuous Assisted Quoatation) – French Stock Exchange, which tracks the 40 largest French stocks represented on the Paris Stock Exchange.

The ease and simplicity of tracking and understanding of changes in the prices of the indices are the strengths of index binary options trade. Since they consist of shares of well-known companies that are often referred to in the media, the need to collect information on changes in stock prices is minimized. Shares in the stock index are weighted according to their prices which mean that any change in the price of one of the shares is also reflected on the index.

It will be just enough to get acquainted with the financial news during lunch to make an informed decision in determining the movement of the index binary option. Returning to our example, let’s assume that you know that the FTSE 100 index rose to 4914.220 and will continue to grow. Thanks to the online availability of the platforms, some minutes later after receiving news you can buy the Call-index binary option for, say, $ 300 with the term of execution at the end of an hour and 70% yield. If you received financial news from trusted sources, and the price will rise at least 0,001, you will get a substantial profit for $ 510 ($ 210 net income – 70% to $ 300 initial investment). Such index binary option trading will be an excellent addition to a good lunch.

Binary Options Trading Benefits

digital options trading

One of the recently popular trading methods is binary options.  There are several binary options trading benefits that have caused their surge in popularity among investor.  This article will detail the various benefits offered by binary options.

Limiting Risk

Because binary options have a fixed payout that is known before entering the contract, they limit the risk for investors.  An investor is able to fully calculate and understand their downside risk and upside potential for every trade before risking a single dollar.  Plus they can be traded with as little as $10, limiting the monetary risk of trading significantly.

Large Yields and Fast Returns

Binary options are available with expiries as short as 30 seconds, meaning a trader can make very fast money with them.  Plus the returns on many binary options are in excess of 80%, which is significantly higher than returns from traditional investment vehicles.

Trading is Simplified

Binary options are one of the simplest asset you can trade.  Within seconds a trader can choose the direction of price, the expiry of the option, and the amount they wish to invest.  No other asset type has such a simple trading process that can be completed so rapidly.

Minimal Investment

A binary options account can be opened for as little as $100 and individual options can be purchased for just $10.  This makes them accessible to nearly anyone who wants to profit from the financial markets.

Large Variety of Assets

Traditional investments range from commodities and currencies to stock indices and individual stocks.  It can be confusing to learn about all the specifics of trading each asset class, but with binary options an investor can

options trading

have access to all these different assets in one place.

Trade Under Any Market Conditions

Markets move in a variety of ways, and many times the market isn’t suitable for traditional trading methods.  Binary options have different types however that bypass this difficulty.  There are binary options that work well in trending markets, others that work in volatile markets, and still others that work well in sideways or directionless markets.  With binary options there’s no reason to ever be out of the market because the conditions aren’t suitable for profitable trading.

Trade When and Where You Like

Because most binary options trading platforms are web based you can trade them on any internet enabled device, as long as you have an internet connection.  Plus, they are available 24 hours a day, 5 days a week.  No more waiting for markets to open with binary options you can trade anytime.  Some brokers even offer weekend options that pay even better returns than those during normal market hours.

As you can see, trading binary options has a myriad of benefits.  In addition to those already mentioned, trading binaries is also fun.  So why not open a free account and learn about the benefits of trading binary options first hand.

Unpredictable Market Movement

binary options markets

When you utilize binary options trading, you have the opportunity to trade within the different financial markets. Sellers and buyers of binary options trading in the various markets use this option to trade, as it is a highly profitable trading option. As such, there are a majority of investors who choose to trade using the binary options trading. Profits that you will earn when you use the traditional trading options greatly depend on the change of price of the underlying asset; therefore, you are not able to determine the direction of the price. Per contra, profits gained from using the binary options are dependent upon the direction of the price, instead of the importance of the price change. Therefore, you will have to chance to up to 70% of returns, no matter what direction the price of the underlying asset will take.

binary options markets
In order to successfully predict the direction of the market, you need to conduct a fundamental and methodological analysis; however, there will be times when you will come across unexpected events that need an instant response, in order decrease your risk levels and cash in on your investment.

Let’s take a look at the following example. You have done your research of the market and you find out that an unexpected event will happen on Wednesday afternoon at approximately 1 PM. This unexpected event is that the United States Employment Agency has just released reports of the unemployment rates of the quarter that has just ended. You are confident that the market will be affected by this event; however, you do not know the direction of the market.
In an attempt to secure these two options, you place $1,000 on the Call option and another $1,000 on the Put option simultaneously. Throughout the next hour, the statistics of unemployment are revealed and there has been a 3% decrease in the rates, and the price for the retail options have increased.

With the revelation of the unemployment statistics, you realize that your selection of the Call option ends in-the-money and your selection of the Put option ends out-of-the-money. In order to reduce your risk, you make use of the Close Now option and you are able to reclaim $250 of your initial investment of $1,000 that you invested on the Put option. Because the Call option is in-the-money, your return will be $1,800.

If at the close of the Put option the underlying asset decreased below the point of the strike price, by using the Close Now feature you will only be able to reclaim $150.

If the binary options trading don’t seem like a way to earn large profits, then you can make use of the Range Options when you’re trading.

Who Trades Binary Options

binary options trading

Regardless of the type of trader you are, trading binary options is a great choice. You could be a new face in the investment market, a seasoned day trader, or a Forex trader who is seeking a faster return rate. Binary options are an excellent choice if you want to start in the investment market, as they remove a number of factors that are linked to other forms of trading. They are a great help in assisting seasoned traders to predict the precise rate of return.

binary options trading As such, anyone who knows how to analyze market conditions and make quick decisions about the direction of the underlying asset will be successful in trading with binary options. When trading with binary options you need to learn how to reduce the amount of risk, because it is fairly easy to get lost in a strong strategy, only to experience huge losses. As a binary options trader, it is vital that you have the control to remain with an effective long term strategy, even if the conditions of the market may influence you to divert from your investment strategy.

With the introduction of binary options to the trading industry, only a handful of people who participated in the semi-official market over-the-counter could use them. Binary options were regarded as an exotic form of trading; hence, several investors did not think that the option was suitable for them. Until 2008, many traders had not heard of binary options, and there were even less of them that understood binary options.

In the past, members of the public who are interested to trade with binary options had to hire a binary options broker. In 2008, some of the most popular exchanges began to list binary options, and now there are several companies that have created ways for persons to start binary options accounts.

Binary options’ new availability has caused more intraday traders to favor this type of options trading, as the conventional options are not easily integrated into their strategies used for trading. Since binary options have maturities per hour, intraday traders have not hesitated to take advantage of this fortunate chance.

Traders who utilize the conventional trading options are also taking advantage of binary options. Though binary options cannot be sold prior to the time of expiration, and it does not allow for unlimited profits as with the conventional options, there are some features of binary options that are intriguing to many traders.

With options trading, market volatility can have an opportunity for high returns using binary options trading, as a result of the risk of trade being very controlled.

Range Options

Digital Options

During the last two years digital options has become quite a popular trading instrument, as a number of investors have now realized how helpful they are in allowing them to be successful while trading. This article was written to give you an insight on how the binary options operate, and the advantages they have over traditional options.

Digital OptionsBinary options are also known as digital options, and this type of trading option guarantees investors a cash payment that is predetermined and fixed. Normally, binary options cash payments are high, and sometimes may be up to 70% or even 75% at other times. With binary options, you will only receive the high cash payments when you select an option that ends in-the-money.

The Range option is the third of the binary options that is provided by Grand Option. This option consists of boundaries that are predetermined and that are thought to be upper and lower. If you are choose to buy a Range option, you should be able to decide if the asset’s cost will remain “In” or simply go “Out” of the range that is preplanned, when the expiration period arrives.

Thus, you are able to trade depending on the underlying asset’s unpredictability. Buy the “Out” Range option if you are believe that the volatility of the underlying asset is high. Per contra, buy the “In” Range option if you believe that the volatility of the Range option is low.

Trading Example:

You make the decision to trade USD/EUR as a Forex option. You look around the trading room and you notice that two options are made available to you; these options are known as “In” and “Out”. Both the “In” and “Out” Range options have a range that is predetermined, and your task is to determine if the underlying asset will be in the upper or lower range at the time of expiration.

If at expiration time you believe that the price of underlying asset will be in range, you should go ahead and buy the “In” range option. Per contra, if you believe that at expiration time the price of USD/EUR will be out of range, you should go ahead and buy the “Out” range option.

When the time of expiration approaches, if the underlying asset remains in the preplanned range that you chose, your high profits will be between 75% and 85% of your initial investment.

A trader can make the choice to invest of any of the following options:

  • Binary Call Option – This option is purchased when the trader thinks that the asset’s price will increase.
  • Binary Put Option – This option is purchased when the trader thinks that the asset’s price will decrease.
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