Easy Option - Binary Option Trading Made Easy

Posted on Feb 26 2010 at 11:11:39 AM in Finance & Investment

Easy Option -Binary Option Trading Made Easy

Trading option is not something that you should completely write off until you know how it works and have a firm grasp on the concept. It is warned that you should first only use risk capital to invest in options, because you can lose just as much money as you stand to make, just as quickly.

option can be used as predictors of stock behavior. Investors can use Put/Call ratios as technical indicators to read for signs of institutional sentiment. The Put/Call ratios offer insight to investors and can be used as either a direct or contrarian indicator for trading decisions. Unusual volume provides reliable clues that the stock is expected to make a move.

Binary option trading is such a recent invention in the markets, that many traders do not realize just how they could use it to good effect. In case you don’t know, binary options get their name because the result is “binary”, simply yes or no. The option is either above or below the price of a financial security at the expiration date and time, and you either get paid or you don’t.If you have a binary call option and the price at expiration is more than your strike price, then you profit by a set amount, usually $100 or $1000 depending on the market and your initial investment. If the price is less, you get nothing, unless you trade with other trading platforms, in which case you are still left with 5-15%.

So as you can see, the potential of  trading through binary options is huge and the process is far simpler, thus increasing your chances for profitable trades, however, you do need to have a sense of where the market is going. Provided that you have this, you are likely to make take far more winning trades than losing ones and a lot more money as well.

  Article Information
Author: Nordtrader
Created: Feb 26 2010 at 11:11:39 AM
Updated: Feb 26 2010 at 11:11:39 AM
Language: English