Introduction to Binary Options

• Facebook • Twitter • Mail • Articles • Binary Options – A Brief Overview • Everything an Investor Should Know About Binary Options • Binary Options Trading as an Investment Vehicle • Binary Option Trading Basics And Tips • Trading Strategies And Algorithms For Binary Options Trading • Brokers Comparison • 24Option Review • AnyOption Review • Banc de Binary Review • CTOption Review • StockPair Review • TitanTrade Review • TradeRush Review • Ubinary Review • The Broker’s Blacklist • Live Trading Signals • Recommended Trading Signals • Option Robots and Auto Traders • Guides • How to Select a Binary Options Broker? • Consider that Deposit Bonus Carefully • Resources • Economic Calender • Investing News • Live Currency Charts • Live Quotes • Glossary • Blog • MarketWatch • Search

Binary Option Trading – Scenario For a Successful Binary Options Strategy March 17, 2015/0 Comments/in Binary Options /by topbicom Binary option trading varies from broker to broker but the basic concept is the same: each trade has only one of two possible outcomes. Binary option trading calls and puts turn over extremely quickly – either hourly or daily. Fortunate day traders find their investments landing consistently in the money – and reaping huge rewards as a result. High Yields Attract Investors to Binary Option Trading Yields on the rapid turning trades range from sixty percent to in some cases seventy five percent. It is literally impossible to compute the compounding rates of return on some of these investments because the yields are so high. Here’s an example of how a trade payout might look. Let’s presume first that the trade expires in the money. What would a two hundred dollar investment in seventy five percent yielding call options payout? The answer is a $ 200 trade in a contract pays $ 350 ($ 200 capital investment plus 75% profit of $ 150). What would happen though if the position expired out of the money? This is where brokers can vary significantly. Sometimes an investor can unload an out of the money put or call prior to expiration – but some brokers operate differently. An unsuccessful trade might pay $ 30 (15% of the original $ 200 investment at expiration) on some particular securities. In other cases a trader might not be able to move his or her position at all. The bottom line is that it is difficult to get out of an out of the money trade. A Binary Options Strategy One possible way to reduce the possibility of getting wiped out while using all or nothing binary option trading contracts is by pairing up an in the money call (for example) with an at the money put. This can create a nested position where the trader makes money if the spot price at expiration is between the two strike prices. One binary options strategy involves pairing a put with a call into a hedge and double position. Binary option trading has a simple up or down payout structure – making it simpler to understand than other types of options trading. See the advantages of opening a binary option trading account. Many times it takes only two successful 0 contracts per day to make 0 in profit per day. More Binary Options Broker Articles Tags: Binary, Option, Options, Scenario, Strategy, Successful, trading Share this entry

• • • • • • •

Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on Linkedin Share on Tumblr Share on Vk

â&#x20AC;˘ Share on Reddit â&#x20AC;˘ Share by Mail You might also like

Trading Options Training From a Real Pro

Classification of Binary Options

Binary Options trading ? Choosing Binary options platform

Binary Options - Delivering Investment Possibilities for All

History of Binary Option Trading

Binary Options Signals

Forex Binary Option Systems

Binary Bets And Binary Options Workings And Trading Strategies 0 replies

Leave a Reply Want to join the discussion? Feel free to contribute!

Leave a Reply Cancel reply Your email address will not be published. Required fields are marked *

Name * Email * Website

Comment You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> Post Comment