BASIC STRATEGY OPTIONS

FRI 06 JANUARY 2017 BY KEENAN MISC

This strategy is very popular with options traders. It is designed and used by a trader to protect against total losses on their investments. You choose an underlying asset or currency that you are interested in, and then when the market movement of the strike price is heading towards a good direction towards the upside, you set a call option. At the same time, you will place a put option on the same asset.

Let's use an example:

The GBP / USD currency option is at 1: 4000. You place the $ 100 call option that expires in 30 minutes. The payout is 70% and 15% if you lose. In the first 15 minutes the value is 1: 4015, which is good. At this point, you are buying a put option for the same asset at 1: 4015 expiring in 15 minutes at $ 100. Payouts are the same as for the call option on Forex.

At the end of the 30 minutes there are two results;

Your 30-minute call option wins and the 15-minute put option losses. You have earned $ 185 from the 70% call winnings and the 15% consolation refund from the put option (the opposite can happen, bet option wins and call option losses). Both the call and the put options end up in the money. You get $ 340 ($ 170 + $ 170). Since it is almost impossible to lose on either option, the overall risk of loss in this strategy is only $ 15 to win $ 140.

 

THE UPSIDE AND DOWNSIDE

WED 01 FEBRUARY 2017 BY KEENAN MISC

There is a downside to these trading instruments, but it does require some perspective. A big advantage is that the risk and reward are known. It doesn't matter how much the market moves for or against the trader. There are only two results: win a fixed amount or lose a fixed amount, even with brokers like TopOption. In addition, there are usually no fees, such as commissions, with these trading instruments (brokers can vary). The options are easy to use, and there is only one decision to make: is the underlying asset up or down? There are also no liquidity problems, because the trader never actually owns the underlying asset and therefore brokers can offer countless exercise prices and expiry times / dates, which is attractive for a trader. A final advantage is that a trader can generally access multiple asset classes in global markets at any time when a market is open anywhere in the world.

The main disadvantage of high-low binary options is that the reward is always less than the risk. This means that a trader needs a high percentage of the time to cover losses. While the payout and risk fluctuate from broker to broker and instrument to instrument, one thing remains constant: losing trades cost traders more than he / she can make profits. Other types of binary options (not high-low) can provide payouts where the reward is potentially greater than the risk.

Another disadvantage is that OTC markets outside the United States are unregulated and little oversee in the event of a trade discussion. While brokers often use a large external source for their quotes, traders can still be prone to unscrupulous practices, even if it's not the norm. Another possible concern is that no underlying assets belong; It is simply a bet on an underlying asset direction. Continue to the Optionweb in the test.

 

TUTORIAL ABOUT TRADING THE PRICE OF GOLD WITH A 'TOUCH TRADE'

SAT 31 DECEMBER 2016 BY KEENAN MISC

If you want to benefit from the swings in the gold market, there are hardly any better ways to do it than with a binary option. With a one-touch trade, the only thing to win is that the asset hits the 1-touch price.

You bet $ 100 that the price of gold will touch $ 1617.40 by 3pm EST today.
The payoff for this trade is 70% when you finish in the money. Trade commodities like gold and oil with easy to buy binary options.

Choose the underlying asset. IE gold, currency pair, stock etc. Determine how long the option should expire. As little as 60 seconds to a day or week. Common expiration times are 15-30 minutes. Choose the amount you want to risk. As little as $ 5, as much as thousands. Decide how you think the price will move (up or down). Click "Up and Down" and click the "Apply" button - just before the "Apply" meeting you will see the exact payout if you win or lose. In the event of expiry, you have either won or lost and are offered the fixed payout before pressing the "apply" button. You can't lose more than your risked amount and you can't lose more than your fixed return no matter how far the price moves. Binaries are one or the other choice with one or the other payout or loss. Winning returns averaged 70-85% among respectable brokers for most trades. If you lose, you get between 0-15%. Some brokers withdraw some percentages of losses, which is why their winning returns are sometimes a bit lower compared to the other brokers.

Binary Charts SelectionThings Before You Start Making Option Trades

Risk is well known and fixed. You cannot lose more than you bet in any trade. They are not and cannot be burned by leverage like you can with Forex trading. You don't need to set stop losses. The return is the same whether you win or lose by 1 pip or 100 pips. Payouts are clearly stated and known right up front before making money on the trade. Most brokers that we list have early closings. This way you can close your option at a price they offer until the last minute. You can lock in profit or minimize loss with early termination. Trading is easy. Choose your asset to trade, how much to risk, choose 'up or down' and click the ' Trade now button. The average yield is 70-85% for the brokers listed here. No hidden costs - your risk and full return are clearly listed. You don't have to be a financial "expert" to win. You have no ownership of the underlying asset. You are only predicting what happens to the price of the asset. Your trade comes down to a "one way or another" choice (so binary) you win, you get a $ 170 payout that risks your $ 100 up front plus the $ 70 return (70% of $ 100 = $ 70). Since a 70% return is a little low on the payout side, the broker offers a 15% discount on losses. If you lose, you get back $ 15 and only lose $ 85 instead of the full $ 100. You can see You are trading and need the price of gold to reach the target price or trigger price of $ 1617.40 before 3pm today.

Fortunately for you, there has been some negative news about the value of the dollar that drove fears of inflation. The price of gold and oil rose accordingly. When the news broke, the gold price peaked and hit your target price. Triggering your trade in the money close. You were paid $ 170, which includes your $ 100 front bet plus the $ 70 return on your investment. You can trade one-touch options on websites like 24option.com, not all brokers offer them, although they are the 2nd most popular form of binary trading.

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