Different Types of Binary Options - PowerPoint PPT Presentation

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Different Types of Binary Options

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Title: Different Types of Binary Options


1
Strategies of Binary Options Trading
  • Binary or digital options differ from traditional
    trades in many ways. Once termed exotic options
    and available to only a select rich investors,
    now anyone can trade in binaries through website
    platforms. Binaries offer predetermined wins and
    loss and the results are set payouts. An investor
    estimates that an asset will rise or fall over a
    period of time. "Call" options are made if the
    prediction is for an asset to rise and a "put"
    option indicates that a trading asset will fall.
    If the investor's estimate is successful, a set
    payout amount is received. On the other side, if
    an investor's prediction fails the amount
    invested is lost.

2
  • As a potential investor, log into your trading
    account and you read that "in the money" accounts
    on wheat are up to 75 in payouts, but the losses
    are as high as 90. With these figures in mind,
    the investor invests 1,000 on a "put" option (or
    prediction that the price of wheat will continue
    to fall) and sets the expiry time at 300 pm. As
    you watch the wheat market, the price actually
    falls from 5.00 to 4.99 and by the 300 expiry
    time wheat is essentially at 4.90. The
    investment has ended "in the money" and a 75
    payback is received.

3
  • The original 1,000 is now 1,750. Within a very
    few hours, a substantial sum was made on a
    relatively small investment. Do note that binary
    options carry risks that are significantly higher
    than regular stock trading. They are less risky
    than the traditional ones and you will always
    know what amount will win or lose. Research a
    number of assets in the commodities markets,
    stock markets and monetary markets before
    engaging in any type of trading. Watch trending
    assets to determine which ones are rising or
    falling or how secure the prices are.

4
  • Use an on-line trading platform to make practice
    puts and calls. Their simulator will give you an
    opportunity to Rapid Income Method Review trade
    without losing "real" money. When you are
    comfortable begin making investments using actual
    money and genuine trades. Make sure that you are
    completely familiar with the terminology, expiry
    terms and amounts you will win or lose before
    trading in binary options. Binary options trading
    is one of the simplest ways to make some money
    over short periods of time. However, it is still
    as risky as any other type of trading. So you
    need to understand how the system actually works
    to be able to become a good trader and turn your
    investment into a profit, especially if you are a
    newcomer.
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