Showing posts with label trade. Show all posts
Showing posts with label trade. Show all posts

Thursday, December 15, 2011

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.

Tuesday, August 23, 2011

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.




Wednesday, August 17, 2011

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

Thursday, August 11, 2011

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 aBinary Options Trader - Worried and stressed 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

Monday, August 1, 2011

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.