Politics and economics and how they affect the ways of doing business as a binary options trader

One of the common ways to tell people things secretly

With binary options trading, the political and economic landscape in the world is extremely important. You aren't trading binary options in a vacuum and making a prediction about what you simply think will happen with gold or oil or stocks over a certain time period. You are, rather, taking a look at a given asset based on what you see happening in the world around you. Is the market at the moment moving stronger or is it weakening? Is it a bear market or a bull market right now? How has gold done in the last 30 days, looking at each 24 hour period? These are all ways that you should look at the asset at hand to make a prediction for binary options trading success. All of this will help you to improve your chances of doing well. And it will make it much more likely that you will, as you look at the big picture around you.

When trading binary options it's wise to start small and grow larger over time

"Start an account and deposit the minimum amount and then trade the minimum amounts till you get the hang of the system, how it works, and the surprises it throws your way. By learning that info with small amount of money, you’ll avoid making the same mistakes with larger amounts." -- from "Ned Niederlander's Known binary options Tutorial Presentation"

What do you know - and not know - about trading binary?

This is not to say that you should never go big with your financial investments. Sometimes the risk is worthwhile. However, before you take a big action in trading binary option assets, you should get acquainted with the available binary options trading platforms that are currently on the market. 


Practicing with the available tools allows the binary options trader to refine the necessary skills to make smart decisions and earn great returns on investment when said trader is ready to go big time.

Academically speaking about binary options affiliate programs

Never underestimate the power of second-hand income. With just a few clicks, new clients of binary options investment platforms can add significant income to the bank accounts of affiliate program members. By passively referring new investors to the trading platforms offered online, the affiliate members can earn real gains for their efforts of bringing on board new traders of binary options. The financial tools that make binary options trading possible have existed for a few decades, but the easy to use affiliate programs that are now available have only been developed recently, and this means that the sector’s potential is still largely untapped. Affiliate program members of these platforms have the possibility to bring on tons of new traders, thus making the potential for financial growth enormous for affiliates.

Trades of Binary Options for oil?

Oil Barrel Binary Options Trades

There are many things that can make the stock market go up or go down. Stocks fluctuate in price all the time and it's important to understand these fluctuations before you get into the market. It's possible that the moral of the country is down because of high unemployment or because of a political problem that is going on. It's possible that the prices go up if a large business makes a declaration or if something else happens on the world economic stage. One type of investment that is based on these changes is binary options. Here, the investor is following a certain asset such as a stock and predicting what will happen with that asset in a set time frame. They are saying that the asset will go up in price a certain amount, or that it will go up within a certain range. Or, they might be saying the opposite.

Binary options tip and investing secrets from Warren Buffet and Jay-Z

The Binary Trading Of Hugs Between Two Zebras

Whatever your financial goals, it is all available for investors who want investment choices with binary option trading.

With optionsclick.com, trader will be able to make quick decisions and get fast results.

Options Click provides an appealing visual experience, they have amazing, world-renowned customer service, and traders have access to some great opportunities for binary trading.

Their website makes it very easy to select an asset, predict what will happen with that asset in a set amount of time, and set an amount to invest. 

Then, it's time to see what happens and to enjoy the process with process of trading binary options.

Just remember not to be overly eager to trade, and be patient, with the ability to wait for the perfect trade to come along.

By watching and learning without risking any money, you will feel much more comfortable trading large volumes when a good trade comes along.

Don't just trade binary options, live them.

Would Notorious BIG rap about binary options trading?

Aside from all the math and algorithms that go into the making of binary options, there is also the aspect of understanding the world and economics and how news factors into everything. I often trade binary options on www.optionsclick.com and have found that if you understand the markets of the assets of binary options then it is possible to make educated guesses and have more profitable trades. A lot of Japanese traders have been able to make a strong profit by using USD/JPY binary options since they are very familiar with their own currency market and how it is being shaped because of corrections and injections by the government to compensate for the Fukushima nuclear disaster and its economical and radioactive fallout. I would recommend that the first step in trading is to familiarize yourself with Frequently Asked Questions to Trade Binary Options - and then learn a bit about the assets and what is actually happening when you trade. 

Basic drawings by a binary options trading artist

Alternating Gradient Pyramid - Binary Options Art

One of the side perks of being a binary options trader (aside from the money) is that you have a magical sweet spot of about 20-30 minutes during each trade where you need to be near the computer, but not actively on it. The ideal scenario during this time is to simply draw it away.

These following images where created by a person in the throws of binary options trading. Some of the imagery is rather bizarre and not really related to binary options trading, or perhaps it is.

Brain Synapses Of A Binary Options Trader.

One aspect that many people don't realize, artist have a hard time getting started on their works, and also continuing it till completion. By involving art in the process of binary options trading, no only is the artist trading binary options better, they are also drawing more, which evolves any artist to be better. Rather than focusing on their lack of recent artistic activity and lamenting the days when they could trade, instead they are exercising their artist skills while making good use of their time.

Down to the basics - binary option basics

I know that I have spent much time blogging here with tips and quips for trading binary options in a better and more uniform fashion, but I have gotten some letters from readers recently that show me that perhaps I need to explain what binary options are in greater detail, before I get into the nitty gritty of how to squeeze out more profits.

Binary options are trades which are made using the Black-Scholes formula and they basically let you invest on a very "Yes, No or Not Sure" type of decision making basis. For example on a high/low binary option, you have the choice if an asset will go up or down at the closing time 15 minute away, or you can simply not place any position. This binary aspect of the trading is what makes these options so unique. To properly learn how to trade binary options, you should just create an account and place bets of small money till you fully understand how the system works.

The Black-Scholes Flaw

Maze of Binary Options Choices

The Black-Scholes Valuation formula is unique in it's regard to how it calculates binary options for trading. It has several assumptions that are programed into the model and there-in lies the problem. One of the primary assumptions for the Black-Scholes model for trading binary options is that there is access to risk-free capital. For many years this simply meant that gov't bonds were needed to secure risk free lending for this portion of the formula. As of around August 2011, the US credit rating was lowered from AAA to AA+ - this lowering of the credit rating effect binary options in that now rather than borrowing at a risk free interest rate, they have to pay the higher interest rate of less-safe bonds. The trading of binary options goes on and functions as usual, but rather than using US bonds, they are using German, or European instruments.

Binary Options Trading Art - Maze of Fun Funnel

Fun Funnel Maze - Binary Trading Artwork

Maze of a funnel system, sort of like a pinched bulls eye. Made this while at the same time trading binary options online and utilizing my creative abilities to remain calm during busy trading periods. I think this little tip is one of the best ways to improve your game while trading binary options

A few people I have recommended this to have come back to me with questions about what to draw and how to better draw. While I do have some tips on that matter, they are missing the point. Its best to just draw what you enjoy so that you can remove some focus from the binary options trading, but don't over focus on the drawing as it can serve as too much of a distraction when you look at it that way.

Thanks to this source for the binary options trading art

Understand what are binary options.

There is an awful lot of information floating around the internet of tips for trading binary options. The thing is that while the information offered on such sites is accurate and true, it has to be used in conjunction with existing knowledge and experience with binary options trading, or the tips are not of much use.

To help you better use such tips for the next time you are trading binary options, you need to understand what is a binary option. We first need to take a step back and understand what is going on inside the computer's brain when you trade options on a binary platform.

The first thing to realize is that the system assumes that the market is frictionless and fractional, meaning they can buy and sell stocks with no commission, and that you don't have to buy an entire share, but rather a fractional amount of a share. These aspects are part of the Black-Scholes valuation formula and are the basis for trading binary options

Another aspect required by the Black-Scholes model is that it requires a risk-free ability to borrow money, meaning that there is no risk of loosing it, such as depositing it in a bank, and if the money is somehow lost it is insured etc, etc.

Cheat-Sheet for the Black-Scholes Valuation Formula

You don't need to know the algebra for the Black-Scholes valuation formula to make money from it, but you do need to understand it so that you don't make mistakes that cost you money. This blog-cheat-sheet will help you understand the basics for Black-Scholes, specifically the details needed to trade binary options.

First of all, the basics: Black-Scholes is a Nobel Prize winning formula that was created by Fischer Black and Myron Scholes - two very intelligent economists from MIT and Harvard. Fischer Black and Myron Scholes worked together at to create the formula after first working on the famous Capital Asset Pricing Model (CAPM), which was proven to not be as accurate for certain investments. They worked on the kinks and problems of the formula with Robert Merton for nearly 3-years from 1968 to 1971 eventually coming up with the Black-Scholes model which was eventually used to establish an investment fund that at first made some reasonable gains, but then lost nearly all of its value at a staggering loss of over $4,000,000,000 for investors. Since then it is not longer considered a long position investment and is primarily used by day-trader dealing in binary options.

Now you know, and the more you know, the better you will trade, so keep on reading.

Where to get more info on binary options trading history and background:

Fischer BlackCo-Founder of Binary Options Formula

As a seasoned trader of binary options, I often get asked about tips and recommendations. The problem is that I can't answer such a question with a simple answer, however, I can say with certainty that if you educate yourself on the matter, you will see stronger profits when you trade and you'll understand what you are clicking rather than just pressing buttons and hoping for the best,

The first order of business is that you should learn the history of binary options trading as well as familiarize yourself with the Black-Scholes binary options valuation formula.

Once you have mastered this information, then you'll be better equipped to read the graphs and understand which binary option trades are good trades and which ones are riskier. Such information is way more important than the short term "which stock is good" or "which way is the market headed" questions, who's answers have an expiration date of RIGHT NOW.

Basics of Black Scholes model

Fischer Black

Black Scholes is the basis for all binary options trading, online or off. Once you understand the formula for calculating the prices and closing values of the traded option, it becomes far more clear how to use this information for realizing profit and minimizing risk and loss. Although the formula does not allow for certain gains, it does mitigate the chances of loss and also helps traders "wrap their heads around" the mechanics of the market so that they can use that information to yield a profit or hedge losses. Unlike stocks, bonds, currency and all other forms of trading, binary trading incorporates all those instruments into a very simple YES OR NO type of decision that the trader can then decide if they want to take or not. With the proper emotional conditioning and expanded understanding of the markets' behavior, a trader can double, triple or even greater expand his profits.

Myron Scholes

One of the main aspects required by the Black Scholes Valuation Model is that they must have "frictionless" meaning they do not incur any fees, as well as being one that does not offer dividend and that can be sold fractionally. The process of purchasing such an share would make it very difficult to repeat as who buys "half" a share or any portion of a share other than a whole, and in addition, who will sell you and buy from your shares without charging as how would they afford their own costs. Binary options solve all these issues by combining all of them into a nice tidy unit that they sell as a binary option. While they may loose out on places that otherwise earn them fees, they pass on the savings to the traders, whom they make money from on the difference of profit vs loss.

Binary Options Trading - So much easier to do online.

There are certain things that have gotten much easier these past few decades thanks to the help and advanced in modern technology. We where still very capable of calling overseas and maintaining contact with the world entire, even in the 1960's and 1970's - However, it was much more expensive back then and bit more cumbersome.

With certain financial concepts and instruments, they would simply not be viable if we did not have the instant-connections that we take for granite in today's worlds. Albeit there would be people who could make a functioning purchase that would be the same as modern online binary options trading, however, it would not be for the small amounts we repeat over and over and it would not be in a matter of a few clicks.

Using the same principals as Black-Scholes outlines years ago, we have the ability to make money on the market based on our ability to predict it, not simply on our ability to predict increases and gains. We are even able to make a profit on accurately predicting if the market will remain stable or will fluctuate in the next few minutes, equally gaining or loosing based on the absolute value of the markets movements, and disregard the direction of that movement.

There are many online sites that offer very secure and fast binary options trading, and further more it can be confusing as to which one to use and how much to place. A few fellow writers in my field have recommended that, unless you are a financial planning professional, you should refrain from making any large investment till you have given it a try and found how to turn small amounts into slightly larger amounts.

So next time you are trading online and having a nice time, remember that it is technology that makes it all possible and if we still had our 1970's style technology we'd be putting on records on the 8-track and dialing our friends on a handheld radio.

Binary Trading is WAY easier now than it might have been in the 1970's

You can download this cartoon of a 1970's style binary options trader at the following links:
1970's style binary options trader on Flickr
Binary Options Trader with full 70's style hair and mustache on Panoramio
Binary trader with old-school walkie talkie on Red Bubble
Guy trading binary options on 70's size walkie talkie on Twitpic
Photobucket hosted pic of 70's style binary options trader

Using binary options to turn a profit, tips and hedging advice

Get you paws on as much as you can

Top Ten Super-Tips for using the Black-Scholes Valuation formula to gain large profits with online binary options trading:

These tips are called "super-tips" as the regular tips we give are designed for novice traders. These tips are designed for more advanced users who are willing to forego some excitement and risk in exchange for dull, boring, and more consistent profits.

1. Trade only in small amounts till you have a much stronger grasp on that specific commodity, stock or indice.
2. Utilize "closable" options to hedge the rise so that you can make very quick 20% to 40% gains rather than drawn out 85% gains that carry a risk of 100% loss.
3. Be technical analytical and review the graphs for patterns and predictability. Only trade in graphs of options you feel comoftable predicting. 
4. Better to not trade for a half hour than loose durring that half hour.
5. Don't hedge your risk by trading in opposing option. The profit of 85% comes at a risk of 100%, so hedging like that will result in an across-the-board 15% loss.
6. Remember: Its important to avoid losses as much as it is to achieve gains.
7. Don't let losses or gains effect you overall strategy. Emotion are your enemy in this game. 
8. With currency related binary trade, compare different currencies to narrow down which ones are actually falling and which ones are only relativity falling
9. Avoid trading binary options at the beginning of market open unless specific events in the news provide a window of predictability.
10. Learn from your mistakes. Binary Options Trading is an aquired skill. Don't be afraid to make mistakes, but do avoid repeating them.

 We hope you've enjoyed these tips. Please feel free to leave comments or questions. These tips are based on Trading Binary Options on OptionsClick.com - not sure about any other sites.

Tips for trading binary options - small profit small risk approach

Trading binary options online can be a tricky business. You ability to extrapolate data from graphs and charts is so very critical for the success of your trading.

A common feeling is that of "get rich RIGHT AWAY" which you should avoid at all costs (no pun intended) - The best thing to do for making money with binary options trading is to start an account with a small amount of money and learn how to trade with small amounts of $10 or $20 and get a strong percentage return. Once you are comfortable with you prediction ability of the market, you can increase the amount.

Check out this video on how to make small gains quickly, rather than long drawn out riskier larger gains:

 Video of Binary Options Trader Making $5 in 5minutes

Special thanks to ZEN OPTIONS for providing this video on binary trading to us

Tips for trading binary options online:

Think before you click. Trade Binary Options Smart

Tips for binary options trading:

1. Trade online, only use binary options trading platforms that have real-time updates and don't charge a commission.
2. Use sites that offer binary trading with the possibility of closing your position before it expires and still making a solid return - utilize this capability to hedge your risk and make lost of small, profitable trades.
3. Do not start making large trades when you are below your starting point with the hopes of re-couping your losses.
4. Do not trade if your mindset is not that of a small-gains and reserved approach.
5. If you loose several trades in a row, then stop trading for a few hours. Do not try and regain your losses quickly.
6. Analyze graphs and only trade on positions you have a clear picture of. Utilize the various forms of options for different market behaviors
7. Don't be afraid to take chances, but don't take the chances with large wagers.
8. Practice reading graphs, review the trades that end in loss so that you can learn from your mistakes.
9. Keep up to date on the news, especially for political events that effect the price of oil and the stock markets.
10. Learn the graphs of the financial data and learn to differentiate between a correction and a trend.

Don't be left in the cold. Learn before you trade

Obviously these tips alone are not going to enable you to suddenly become a wealthy binary options trader. But by learning the trends and patterns that keep winning overall, you can be in a better position than starting out cold. Educate yourself about financial betting and general binary options trading and enable yourself to succeed in the volatile marketplace. Don't be discouraged if you have a few losses, the main thing is to learn how to read the market and apply it when it counts.








binary options trading tips - source

Top Ten Reason trading online is better than in-person:

Click and Trade - Online Binary Options Trading

Top Ten List of The Top Reasons that Trading ONLINE is better than In-Person.

Top Ten Reason trading online is better than in-person:

We have all heard and seen the hype about trading online binary options, but we may have forgotten why it is so appealing. This entertaining list reminds us.


Top Ten Reason trading online is better than in-person:

1. 3 words: Much Shorter Commute
2. In-person trading: pants mandatory. Online trading: pants optional
3. Binary trading from home gives you a bit more free time to tan your pasty white thighs.
4. You can trade your binary options even while you get called in for jury duty.
5. Less focus on commute, more focus on lunch
6. Always fun to answer "where do you live? and "where do you work?" questions with an identical reply.
7. You can't watch TV at the office.
8. Better trading patterns when you sleep late everyday.
9. How else are you going to become a binary options trader?
10. Because you only do online binary options trading so that you don't have to go to work.
    

We hope you have enjoyed this top ten list. Please visit back regularly to check out the latest news and updates about online binary trading the world around it.

When will gold pop already?

The higher gold climbs the more intense the debate between bulls and bears, those who think the yellow metal has a long way to run and those who say this is a giant bubble that is going to pop, and soon.Here are five reasons the bears are calling the current run of gold -- up 27 percent since Jan. 1 -- a bubble, and thus something to avoid.

1. Basic economics. The World Gold Council in a recent study said that in the second quarter total global demand for gold declined 17 percent, on a year-over-year basis. But despite that decline the price of gold rose about 25 percent. At some point supply and demand have to come back into balance, say the bears, and when they do it would be best to be out of gold.

2. If it looks like a bubble ... "People believe that gold is a hedge against uncertain times. In the long run, gold prices have kept pace with inflation. People are flocking to it", says Lloyd Thomas, an economics professor at Kansas State University. "But in 2000 the price of gold was $300 an ounce. It has gone up six-fold since then, and it might go up higher than what it is right now. It's gone up too fast -- it's a bubble." 

Thomas compares the current gold market to the U.S. housing market. People believed, as they believe now for gold, that the housing prices would continue to increase. But ultimately, they fell more than 30 percent in most 
American cities.


"The same thing could happen to gold; it's not risk-free. In the last 10 years it's gone up 17 percent a year, but the price of things we purchase has only gone up 3 percent a year. That's unsustainable. It's my own opinion that gold prices will collapse -- I just don't know when", he says.

3. Soros has left the building. Billionaire George Soros as well as Eric Mindich cut their holdings in the SPDR Gold Trust, an exchange-traded fund, in the second quarter as prices rallied. You may not understand algorithms, econometrics or 200-day moving averages, but almost anyone can imitate winners.
Major professional money managers are also starting to get worried. Wells Fargo is warning its clients, including wealthy ones, that gold is grossly overbought, a "bubble that is poised to burst." Said Wells Fargo analyst Dean Junkans: "We have seen the economic damage" of past bubbles and "feel compelled to ring the warning bells."
"There could be substantial risk to gold once the fear that the world is coming to an end subsides," Junkans told Reuters in a telephone interview from Minneapolis. "We are worried about the downward risk."

4. Investor naivete. "Trees don't grow till heaven. I think buyers need to be beware we are in a 'caveat emptor' market," Jeffrey Rhodes, global head of precious metals at INTL FCStone, a brokerage, told Reuters.
"My problem is that people are buying gold and they don't understand why they are buying gold and that's a big problem and that is a classic symptom of a bubble," said Rhodes.

5. What is your pain tolerance? Even if you don't think gold is a bubble, it certainly is a bull market, and bull markets often end dirty and messy, and take years to recover from. Think the U.S. real estate collapse and all the attendant carnage that erupted in 2008 and still hasn't been repaired, among homeowners or bankers. The same could be said of property markets in Ireland and Great Britain.




Want to hedge against the Gold Standard? Try trading binary options.  


Thanks to the source for the article on Gold Ready To Pop

Top Ten Investment & Money quotes

We found this list of top-ten funny investment quotes on the web. Seems that most of the people trying to make money are very NOT FUNNY and sort of stuffy, and those that have lots of money already seem to be pretty funny and jocular (except for Bill Gates, but maybe that is just because the humor part of his brain has some kind of DLL error) - Below is a top ten list of hilarious quotes about money and investment. Enjoy!

Top Ten Funny But True Investment and Money Quotes:

1. Money is like manure. You have to spread it around or it smells. ~ J. Paul Getty
2. When I was young I thought that money was the most important thing in life; now that I am old I know that it is. ~Oscar Wilde
3. We live by the Golden Rule. Those who have the gold make the rules. ~Buzzie Bavasi
4. When it is a question of money, everybody is of the same religion. ~Voltaire
5. Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair. ~Sam Ewing
6. When I have money, I get rid of it quickly, lest it find a way into my heart. ~John Wesley
7. A bank is a place that will lend you money if you can prove that you don't need it. ~Bob Hope
8. The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell. ~John Templeton
9. Money is better than poverty, if only for financial reasons. ~Woody Allen
10. Money will buy you a pretty good dog, but it won't buy the wag of his tail. ~Henry Wheeler Shaw

If you found yourself laughing at any of these, please share a comment on which one chuckled you.

Top-Ten Funniest Explanation of What are Binary Options

Hysterical Binary Options Trader

List of Top-Ten Funniest Explanation of Binary Options

Binary options trading is the hottest thing since margin-investing and CDI's - except way more legitimate and totally legal. Not everyone is 100% sure what is a binary option or what it means to trade them. Below are the funniest explanation that we have gotten so far. Enjoy.





 

Top Ten Funniest Explanations of
What are Binary Options:
10) Stocks that perform magic by using confusing math.
9) Commodities that make you money when they loose money

8) Investment instrument that let you pry open the markets value
7) Piggy bank for those that have science degree in math.
6) It is the equivalent of Diet Coke for the investment community, all the fun and no calories.
5) It's that thing them investment-boys are doing these days.
4) I don't know, I can't even figure out how to use Facebook.
3) Is that trading stocks in Morse code?
2) Binary option is when a person trading stocks has to think like a computer.
1)Have no idea what it is, but sure have fun trading them.

Laughing Binary Options Trader

We'd like to thank this site for the top-ten list of funny explanations for What Are Binary Options

How To Trade Binary Options:

One investment platform that has become very popular in the online trading community – especially with beginners – is trading binary options. The benefits are so great that beginners and pros alike are trading binary options and learning how to trade this financial instrument.

Learning the ins and outs of binary option trading is relatively simple. Here, we will talk about how to trade binary options and learn about navigating these powerful instruments.


The Basics of Trading: Where and How

Does the Dalai Lama Trade Binary Options?

Becoming a binary option trader first means knowing where you can trade them and how they work.
The best way to trade in binary options is to go through an online brokerage. An online brokerage writes contracts for various binary options, which are offered on the value of financial assets such as currency pairs, commodities and stocks. These contracts come with a purchase price, an expiry (the time at which the contract expires), and the conditions for profit (usually a strike price or barrier price).
To participate, you simply need to find a broker that deals in the contracts that you prefer – most online brokers deal in multiple types so you can trade both stock binary options and forex binary options with the same options broker, for example.
Once you register and deposit funds, you choose between two general types: above/below options and touch or barrier options. Some binary options brokers also offer range or boundary binary options as well.
Above/below options basically allow you to take a position on whether an asset’s value will be above or below the current value when you buy it, by the expiry. A touch or barrier option requires that an asset price reach or surpass a certain price or value at least once before the contract expires. Range or boundary binary options mandate that the asset’s value be in between two specific values or prices at expiry.


Being “In-The-Money”

Make sure you come out ahead of the other traders.

How do you know you are in-the-money? The conditions of the contract will give you the targets you need to hit, and these differ by the type of option.
Let’s take XYZ Corporation, which has shares at $10.00. An above/below option says that XYZ will rise by the end of the trading day. If you purchase a call option, you are taking the position that by the end of the trading day, XYZ will be higher than $10.00. If it is at $10.01, you are in-the-money.
With barriers or touch options, the contract may say that XYZ has to be at $12.00 or higher at least once by the end of the trading day. If you buy a call option, and XYZ is at $12.00 or higher at least once before trading closes, then you are in-the-money. If the highest value it reaches is $11.99 before the contract expires, though, you lose.
With range or boundary binary options, the contract may stipulate that the value of XYZ stock has to be in between $11.50 and $12.00 by the close of trading for the day. If XYZ is trading at $11.90, you are in-the-money. If it’s trading at $11.54, you lose your investment.


Payouts
Payouts differ depending on the type of option you choose. Above/below options and range binary options pay out typically 70-85% of the original investment. Barrier options are riskier, so they pay out as much as 300% or more of the original investment.
The payout is your profit. Of course, if you do not meet the requirements, you will lose 80-100% of your original investment.


Conclusion
Learning all about binary options means understanding the key concepts, and knowing where to go to trade them. As with any financial instrument, there is risk involved – but the upside potential, as well as ease of use, makes them attractive options for beginners and pros alike.

Some common info on what are binary options:

Binary option (From Wikipedia)

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-styleoptions.
For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.
In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function.
Click here to read the full Wikipedia article on Binary Options




A binary option is a fixed return option because there are only 2 possible outcomes which are fully realized at the onset of the contract
A binary option is a contract which gives the buyer (known as the owner) the right, but not the obligation, to buy an underlying asset at a fixed price within a specified time frame.
The items being traded are known as underlying assets and they could be a range of products: currencies (e.g. USD/JPY), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100). The fixed price at which the owner buys or sells at, is known as the strike price.
When trading binary options, the buyer of the option chooses whether he thinks the underlying asset will hit the strike price by the selected expiry time – this could be at the end of the nearest hour or the end of the day, week or month.
The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.

Want to try and trade binary options on your own, visit http://optionsclick.com

Thank you to this source for the info on Binary Options

Federal Reservce makes promise to keep interest rates near zero

I came across this article today, I really wonder if the US Gov't will keep the interest rates "near zero" for the duration of time that they claim to do so, which is 2 years, and, if they go back on their word, what will that do to their rating?

WASHINGTON (Reuters) - The U.S. Federal Reserve, in an unprecedented move, said on Tuesday it will keep interemoney, markets, federal, reserve, standard, poor, downgradest rates near zero for at least two more years and is considering further action, bolstering battered stock markets.

The Fed's policysetting Federal Open Market Committee, in a 7-3 vote, overcame internal discord in the first triple dissent against a policy decision since 1992.
Investors were still unsure whether the Fed's even stronger promise to maintain rates at rock-bottom lows until mid-2013 would be enough to revive a flagging economic recovery.

But the decision sparked a rally in equities that pushed the Dow Jones industrial average up more than 400 points. Short-term Treasury yields fell to all-time lows. The gains came after a rout that stemmed from Standard & Poor's historic downgrade of U.S. credit quality last Friday.

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US Credit Rating Cut by S&P

Equities

Wall Street’s Thursday woes led to a steep drop in Asian markets on Friday. The Nikkei fell 3.7% to 9305, and similarly, the Kospi dropped 3.7%. Oil-related stocks were hit hard, following a steep drop in crude oil. Australia’s ASX 200 tumbled 4% to a 2-year low, and the Hang Seng shed 4.3%. China’s Shanghai Composite fared better than most, losing just 2.2%.
European markets extended their losses, as the FTSE fell 2.7%, the DAX dropped 2.8% and the CAC40 decline 1.3%. The oil and gas sector fell 3.4% on concerns about economic growth, and Royal Bank of Scotland tumbled 6.9% after reporting a loss of $1.1 billion.
US stocks swung wildly, as the market digested an upbeat jobs report. The Dow initially opened up more than 170 points, and from that point dropped more than 420 points before reversing to close up 61 points. The S&P 500 closed down .7% and the Nasdaq ended with a loss of .9%. For the week, the S&P 500 fell 7.2% and the Nasdaq dropped 8.1%, their steepest losses since November 2008.

Dow Swings more than 400 Points
Priceline shares jumped 9% on strong earnings which beat forecasts.

Treasuries and Commodities

After the close, S&P cut the US credit rating to AA+ from AAA, a move the White House labeled hasty.

The Crashing Trader

Treasuries sold off, as rumors of the credit cut weighed on fixed income. 10-year notes fell 1 12/32 to yield 2.56%, and 30-year notes plunged 3 11/32 to yield 3.85%.
Gasoline futures jumped 2.5% to 2.8052, while crude oil inched up .3% to 86.88, recovering from an earlier drop down to 82.87
Metals continued to decline, as silver fell 3.1% to 38.21, gold dropped 7.20 to 1651.80, and copper lost 2.8% to 4.117.

Currencies

The Euro surged 1.4% to 1.4290 as Italy announced steps to react to the country’s debt woes. The Pound gained .8% 1.6391, and the Yen advanced 1% to 78.42, while the Swiss Franc and Canadian Dollar closed little changed.

Economic Outlook

Big Ol' Dollar Sign, USD

Non-farm payroll data showed the US economy gained 117K jobs in July, far better than the 89K forecast, and the unemployment rate dipped to 9.1%. This was the first upbeat jobs report since April.
Consumer Credit jumped 7.7% in June, a positive sign of consumer confidence.


An emergency meeting was held over the weekend between global financial officials, to address the debt troubles facing the US and Europe.


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Casino vs binary trading

Are binary options like gambling?

 

I have heard several times from people that when you are buying and selling Binary Options, your are basically gambling. While this may be the case for some people who have addiction issues, they are both quite different. 

Casino games are based on luck and binary trading is based on real market conditions. This is not to say that casino's don't also involve skill or that binary trading doesn't experience luck, but the basis for the trades and exchanges of the two are very different. 

The thing is that casino games are designed for users to win in order to keep them entertained and binary trading are based on which ever direction the market swings, So not sure which one is better.

Got this article from this source

Stock Tip? Boeing, BAE to Build 'Laser Machine Gun

The stock tip below caught my eye because I personally have always wanted to have my own laser machine gun, and because it will change the economics of war and that is something that I, as a Binary Day Trader need to be kept abreast of.  I found this article at http://pimp-my-trades.blogspot.com/2011/07/boeing-bae-to-build-laser-machine-gun.html

I found this article while trolling the web and aside from thinking that it is very much out of sci-fi movies to shoot stuff with a laser gun, I also think that it will result in strong performance from the companies developing it.  The primary companies involved are Boeing and BAE, so keep a sharp eye out for their stock performance.  

Boeing, BAE to Build 'Laser Machine Gun'

Published July 27, 2011

BAE System's ship defense laser.

Like peanut butter and chocolate, the U.S. Navy thinks machine guns and lasers are two great tastes that taste great together. They hope the combination of old school lead with new school "pew" will better protect their ships from attack by smaller boats.

BAE Systems, a British defense firm, already makes the giant machine guns that protect warships from approaching watercraft. Tuesday, Boeing announced that it will team up with BAE Systems to develop a solid-state laser that would work in tandem with the already potent weapon.

"Boeing is committed to developing this directed energy system that will significantly enhance ship defense," said Michael Rinn, Boeing DES vice president. "Combining BAE's engineering expertise with the proven directed-energy proficiency of Boeing's DES division creates a team uniquely qualified to integrate directed-energy technology into the Navy's shipboard armaments."

BAE won the contract to develop the laser, which the Navy envisions as a countermeasure against small drones, tiny boats and anything else that gets too close a Navy surface vessel. Now, Boeing has joined the team to develop the prototype weapon.

It's anybody's guess what kind of threat a machine guns or lasers can't defeat on their own (Mothra? Decepticons? Kraken?). But now that 19th century ballistic technology has teamed up with 21st century ray gun tech, whatever that enemy may be will think twice about messing with a U.S. Navy warship.

  *   Ten Military Aircraft that Never Made it Past the Test Phase
  *   Could America Really Build a 'Star Wars' AT-AT Walker?
  *   INFOGRAPHIC: When Will I Get My Laser Gun?

The Black Scholes smiling graph.

As you are probably familiar with, the Black-Scholes model is the basis for Binary Trading, a new form of derivative investment that enables you to make money based on your accurate prediction of how the market will perform.

This means that you can make good money by accurately predicting that a stock or other investment will go down in price, will remain the same, or will reach or drop to a certain level. While in the past, stocks would only be of use to an investor if they performed well (or in the example of a short sale, performed poorly) - but the Black Scholes model allows for "Binary Trading" meaning that you can hedge the market based on all-or-nothing positions, meaning you make 85% (or so) profit if you are right and loose 100% if you are wrong.

With the way the market has behaved in the recent years, it became critical for investors to be able to make money using their knowledge of the market, without having to wait YEARS for the bull market to return.

Basically, if you can look at a graph and predict where it will go next, then binary options trading is right for you.