Binary Options Trading As an Investment Vehicle - PowerPoint PPT Presentation


Title: Binary Options Trading As an Investment Vehicle


1
Hedging Strategy Using Binary Options
  • Binary options trading is an up and coming space
    right now with many Forex traders testing out the
    Binary options (B.O) waters. Why are we seeing so
    much crossover between Forex trading and B.O? The
    answer is quite simple. The two industries are
    very similar in a lot of ways. To name some of
    the areas that there is overlap, when B.O
    trading, you can actually trade Forex currencies.
    In addition, you are in essence predicting the
    movement of the asset based on the analysis of
    the Forex market. In addition, just like in Forex
    trading, Binary options requires a very small
    amount of initial capital and the option to
    profit is in both directions. If you predict that
    the asset will decline and it does, you make
    money and if you predict it will increase and it
    does, you also make money.

2
  • Same as Forex trading. So if there is so much
    common ground between Forex trading and B.O
    trading, why are so many people leaving the
    former and going over to the latter? Well, the
    truth is that as attractive as Forex trading is
    to many people, B.O has some clear advantages.
    For starters, trading B.O is significantly
    simpler than trading Forex. You decide if you
    think the asset will go up or down and that is
    all. No charts, no analysis, no Fibonacci, and no
    retracements. In addition, profits in Binary
    options are immediate and transparent. Finally,
    all binary trading platforms are Web based
    meaning you can trade binary wherever you are as
    long as you have internet connectivity.

3
  • Whether you choose to trade Forex or binary
    options, it is important to have some sort of a
    strategy, which includes your financial goals,
    your exit points, and an exact definition of how
    much money you are willing and able to risk. If
    you are trading binary options you already know
    of the big advantages this kind of trading
    offers. What I will try to show in this article
    is a very simple strategy that can be applied in
    certain situations and give great results for
    those who trade using binary options. The
    strategy I'm about to explain is based on hedging
    and tries to obtain high profits while risking
    only a small investment. The strategy can be
    applied only in certain circumstances but it will
    prove to be very useful for any trader.

4
  • To best describe the strategy I will use an
    example from the very beginning and explain how
    to use the strategy on that particular example.
    Let's consider that you bought a CALL option on
    The Amissio Formula Review worth 100 dollars with
    the deadline after 12 hours. The NASDAQ value was
    2380 at the time you bought the option and after
    3 hours it raises to 2430 (a 50 points raise). In
    this moment you will have to buy a PUT option on
    worth the same amount and with the same deadline
    as the first option. After purchasing the second
    option you have two possible outcomes both
    options are winners if the price will be between
    2380 and 2430 at the expiry, or you have one
    winning and one losing option, if the expiry
    value is lower than 2380 or higher than 2430.
  • http//centumentltdreview.com/the-amissio-formula-
    review/
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Binary Options Trading As an Investment Vehicle

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Title: Binary Options Trading As an Investment Vehicle


1
Hedging Strategy Using Binary Options
  • Binary options trading is an up and coming space
    right now with many Forex traders testing out the
    Binary options (B.O) waters. Why are we seeing so
    much crossover between Forex trading and B.O? The
    answer is quite simple. The two industries are
    very similar in a lot of ways. To name some of
    the areas that there is overlap, when B.O
    trading, you can actually trade Forex currencies.
    In addition, you are in essence predicting the
    movement of the asset based on the analysis of
    the Forex market. In addition, just like in Forex
    trading, Binary options requires a very small
    amount of initial capital and the option to
    profit is in both directions. If you predict that
    the asset will decline and it does, you make
    money and if you predict it will increase and it
    does, you also make money.

2
  • Same as Forex trading. So if there is so much
    common ground between Forex trading and B.O
    trading, why are so many people leaving the
    former and going over to the latter? Well, the
    truth is that as attractive as Forex trading is
    to many people, B.O has some clear advantages.
    For starters, trading B.O is significantly
    simpler than trading Forex. You decide if you
    think the asset will go up or down and that is
    all. No charts, no analysis, no Fibonacci, and no
    retracements. In addition, profits in Binary
    options are immediate and transparent. Finally,
    all binary trading platforms are Web based
    meaning you can trade binary wherever you are as
    long as you have internet connectivity.

3
  • Whether you choose to trade Forex or binary
    options, it is important to have some sort of a
    strategy, which includes your financial goals,
    your exit points, and an exact definition of how
    much money you are willing and able to risk. If
    you are trading binary options you already know
    of the big advantages this kind of trading
    offers. What I will try to show in this article
    is a very simple strategy that can be applied in
    certain situations and give great results for
    those who trade using binary options. The
    strategy I'm about to explain is based on hedging
    and tries to obtain high profits while risking
    only a small investment. The strategy can be
    applied only in certain circumstances but it will
    prove to be very useful for any trader.

4
  • To best describe the strategy I will use an
    example from the very beginning and explain how
    to use the strategy on that particular example.
    Let's consider that you bought a CALL option on
    The Amissio Formula Review worth 100 dollars with
    the deadline after 12 hours. The NASDAQ value was
    2380 at the time you bought the option and after
    3 hours it raises to 2430 (a 50 points raise). In
    this moment you will have to buy a PUT option on
    worth the same amount and with the same deadline
    as the first option. After purchasing the second
    option you have two possible outcomes both
    options are winners if the price will be between
    2380 and 2430 at the expiry, or you have one
    winning and one losing option, if the expiry
    value is lower than 2380 or higher than 2430.
  • http//centumentltdreview.com/the-amissio-formula-
    review/
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