BASICS OF BINARY OPTIONS TRADING

Similar documents
MICHAEL HODGES AND BRETT COOPER

Introduction... 4 A look at Binary Options Who Trades Binary Options? Binary Option Brokers... 5 Individual Investors...

FX Growth Manager Manual

Partnerships you can depend on

FUTURES TRADING SYSTEMS

Options and Futures Markets Introduction to Derivative Markets Risk Management in Financial Markets. Complexity of Products and Markets

Chapter 4.1. Intermarket Relationships

CFDs YOUR STARTER KIT

Risk Disclosure. Introduction. through Stofs.com falls under the CySEC licence.

How To Trade Binary Options

BINARY OPTION TRADING. Lesson #1

How To Trade Currency On Fxpro

The Banker Profit System Review

track, or replicate, the performance of an underlying index. Futures-based ETFs, on the other hand, invest in

BINARY OPTIONS. Getting Started. Understanding. Lesson01. Basic Terminology. What are the basics involved in binary options trading?

The Forex Industry Comes of Age

How to Trade Almost Any Asset in the World from a Single Account Using CFDs

INDUSTRY LEADING DERIVATIVES EXPERTS. Tel:

POLICY STATEMENT Q-22

Dynamic Pro Scalper. User Guide

How to Trade Like a Professional in Forex Market?

Binary101 Indicator User Guide version 3.0

Free Scalping Indicator

Market and Exercise Price Relationships. Option Terminology. Options Trading. CHAPTER 15 Options Markets 15.1 THE OPTION CONTRACT

A future or forward contract is an agreement on price now for delivery of a specific product or service in the future.

Handbook for finding the right FX Broker

FX Options NASDAQ OMX

CHAPTER 22: FUTURES MARKETS

I The World Most Leading Platform BINARY OPTION

or enters into a Futures contract (either on the IPE or the NYMEX) with delivery date September and pay every day up to maturity the margin

Partnerships you can depend on

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems:

CHAPTER 22: FUTURES MARKETS

Part 1: Three-Way Orders - Theoretical. Aksjer Obligasjoner Netthandel Corporate Finance

RISK DISCLOSURE. Version: 1.0. Date: April. 2014

CONTRACTS FOR DIFFERENCE

FOREX CAPITAL MARKETS

A guide to Financial Spread Betting

AN INTRODUCTION TO TRADING CURRENCIES

market data solutions Website Content Market Data & Information Feeds Desktop Trading Applications

A guide to CFDs. Contracts for difference. For more information please contact us on or visit our website

Forex Capital Trading Pty Ltd. does not make any recommendations on the validity of any financial product referred to in this advertisement, s


FOREX SECRET REPORT. If you really want to make money, spend 5 minutes and read this ForexAutomoney.com

Class 2: Buying Stock & Intro to Charting. Buying Stock

WELCOME TO FXDD S BULLISH OPTIONS STRATEGY GUIDE

Beginner s Guide to CFDs

Content ... Regulation. Advantages NetTradeX Trading Terminal ... Personal Composite Instrument (PCI) technology ...

ALFA FINANCIAL L.L.C. Licensed and Regulated by the Central Bank of the U.A.E.

GAIN Capital FOREX.com Australia Pty Limited EXECUTION POLICY for the Dealbook Suite of Platforms

Exchange-Traded Funds

SuperTradingOnline Risk Disclosure. Version: 3.0 Date: May 2015 STO Cyprus

Getting Started in Shares. Brought to you by: JSE Limited & Online Share Trading

WELCOME TO FXDD S RANGE & TARGET OPTIONS STRATEGY GUIDE

Chapter 16: Financial Risk Management

THE WORLD IN ONE TRADING PLATFORM.

Steve Meizinger. Understanding the FX Option Greeks

offering a comprehensive range of investment products and services.

CFDs An Introduction

WINNING STOCK & OPTION STRATEGIES

Currency Trading and Forex 100 Success Secrets 100 Most Asked Questions on becoming a Successful Currency Trader

Contents USEFUL RESOURCES:... 19

Disclosure Document Morningstar High Growth Portfolio

Let s Get to Know Spread Bets

SHADOWTRADERPRO FX TRADER USERS GUIDE

Algorithmic Trading: A Quantitative Approach to Developing an Automated Trading System

We re glad you ve decided to make GFT s Foresight A.I. a. part of your trading strategy. This powerful and unique tool

Currency Futures trade on the JSE s Currency Derivatives Trading Platform

How to Collect a 162% Cash on Cash Return

INVESTMENT DICTIONARY

Derivative Users Traders of derivatives can be categorized as hedgers, speculators, or arbitrageurs.

General Risk Disclosure

Trading The Precision Way

2 Disclaimer

PROBABILITY & CREDIT SPREADS

Gold Exposed: Spot Gold versus Gold Futures

Fast and Furious Trading. Boris Schlossberg Director of Currency Research

Gap Trading The Forex

Structured products. Precision tools. A guide for private investors.

Section 1 - Overview and Option Basics

CURRENCY FUTURES IN INDIA WITH SPECIAL REFERENCE TO CURRENCY FUTURES TRADED AT NSE

Frequently Asked Questions PG&E Corporation Retirement Savings Plan (a 401(k) Plan) Need Help? General Questions: Information About Your RSP Account

Guide to Building Your Wealth. 1. What affects the value of money?

Company Information & Disclosure Document 2012

Presentation for University of São Paulo. March 2011

GOLD S SECRETS REVEALED. All You Need to Know to Trade Gold Successfully on the Financial Markets

How To Be Profitable With A Currency Exchange Rate Option

FOREX FOR BEGINNERS.

Keep Decypha-ing! What s in it for You?

Brokerage/ E-trading.

Discussion today. Trading: Luck or Skill or Both? Research Objective. Global Financial Markets. Advent of Electronic Trading

Complex Products. Non-Complex Products. General risks of trading

Introductory Guide to CFDs

GUIDE TO DAY TRADING

Chapter 2 Mechanics of Futures Markets. Options, Futures, and Other Derivatives, 8th Edition, Copyright John C. Hull

Introduction to Interest Rate Trading. Andrew Wilkinson

Version :4.0 Date: April 2015 STO AFX Markets Ltd (FCA)

Option Pricing Beyond Black-Scholes Dan O Rourke

Chapter 3: Commodity Forwards and Futures

Transcription:

BASICS OF BINARY OPTIONS TRADING INTRODUCTION TO BINARY OPTIONS TRADING Option Banque Training Series Vol. 1

INTRODUCTION TO BINARY OPTIONS TRADING Binary Options as the name of financial instruments, sounds complicated, but in reality, they are not at all complex. Binary options allow trading in currencies, stock indices, commodities, bonds and shares even economic events with a relatively small amount of money and limited risk. Generally speaking, all a trader needs to do is estimate the possible direction of the markets from any given point. Hence Binary Options trading carries just two investment possibilities. When a trader estimates that the price of the asset will rise, the investment/trade made corresponding to that, is termed asbuying a Call option. The other possibility is presented when a trader estimates that the price of the asset will fall, and trades/invests to benefit from it, this type of investment/trade is called the buying of a Put option. WHY CHOOSE BINARY OPTIONS? There are some reasons why binary options should be preferred for investment, let s discuss them briefly; Simple Concept. Technically binary option trading is a lot easier than trading directly in the underlying assets, for example foreign exchange, because there are no concerns related to the time value decay of options,no technical jargons, no/very few emotions involved in stopping losses or letting profits run, no patterns or day trading rules(related to the products traded etc. Higher Returns. With binary Options, the average ROI tends to be between 65% and 90%, for most assetsover 1 hour of investing time. It is rare for any other financial instrument to offer comparable returns within similar time-frames. Returns can go as high as 700% for longer maturities. No hidden charges, no commission. With binary options trading, you do not need to pay any brokerage commission ever! Your invested amount, your returns, your trades are free from brokerage commission and there is no other hidden charge on them. 1

Easier Risk Management. With binary options trading you decide and state the investment amount for a fixed return (profit) with your invested amount returned to you if your investment decision is correct. For example, you invested $50 with a return rate of 70% and an insurance rate of 10% if your investment decision is correct (i.e. the option expires in the money), you will get your $50 invested amount back, along with the 70% profit of $35.Thus the total cash return to you is $85. Similarly, if your investment decision is incorrect (i.e. the option expires out of money), you will only get back $5 being the 10% insurance amount. Note: Not all brokers offer insurance on trade losses. With this, you know precisely, how much your risk exposure is, and your returns and you can invest based on your risk preference per se. Trading binary options is easy. Binary options do not rely on luck. What you need to do is to study the behavior of the asset that interests you. With binary options, you do not need the knowledge of an analyst or forecaster to turn your investment in binary options into a profit. The only knowledge you really need is to be able to estimate the direction that the price ofyour chosen asset will move in, for the duration of your trade/investment. If you take time to watch the asset you want to invest in and can reasonably estimate the direction of the price (using analytical trading tools, of course) then you could be like many other successful investors trading in binary options, and creating a complementary income stream for yourself. Binary options trading is available 24/7. Option Banque allows trading in high yield weekend options offering lucrative return of 500%-800%. You can trade options anytime throughout the week unlike forex or any other financial trading market. 2

TRADING HOURS FOR BINARY OPTIONS TRADING The trading hours for binary options depend on the hours in which the underlying assets for binary options are traded. Currencies are a 24 hour market, so currencies are available for trading as binary options the whole day, 7 days a week (weekend options over the weekend). Stocks are traded for between 6-8 hours a day, depending on the stock exchange where the stock is traded. In the United States, this is from 1.30 GMT to 8.00 GMT. In Europe, this is from 8 am GMT to 3/4 PM GMT. For stock index futures, the trading hours correspond to the hours of operation of the individual markets. CONCLUSION Exclusive and exotic options are also available on all the above mentioned assets even during off-market hours/days(in cases where the underlying markets are not open, at any given point in time). 3

RISK DISCLOSURE: Option Banque does not assume any responsibility for any loss or damage arising by following the information provided by Option Banque. This includes The Educational Material, Price Quotes, Charts and Analysis. Please be aware of the risks associated with trading the financial markets; never invest more money than you can risk losing. 4