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Binary options trading, stocks, futures etc.
Mike | binarymaster

The Process of Trading Options – Puts or Calls?

Sep 5th 2015 at 1:04 AM

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All the binary options trading systems is designed so simple that it can be understood even by a child and to trade there are only two buttons – CALL and PUT or up and down. Your task is to determine the price will go asset (shares, index, currency, commodity) up or down (visit for more info).

Choosing a binary options trading strategy it is necessary to comprehensively evaluate its potential profitability and the acceptable risk level. It is unlikely that any strategy on the Forex market can be called universal. After all everyone is betting on the basis of their own judgment. Now we would like to tell you about one of the types of currency trading – trading binary options. How to place bids on this method and why it is considered one of the most simple and effective? The bidding process is as follows:

1. Select the currency pair on which to forecast (this may be the Euro / US Dollar, Canadian Dollar / Japanese Yen, etc.);

2. Predictions are made for some time as to whether the price will rise or fall (in a professional environment that sounds like a call / put);

3. If the prediction was correct and the price has changed at least at one point in the right direction at the right time your earnings may amount to 85% of the investment.

From this it is evident that investing in binary options is very simple and profitable strategy. Let's look at the main benefits of the strategy in binary options:

  • trade is at zero spread (ie the difference between the purchase price and the sale price the currency pair is zero);

  • yield up to 85% with one option; You alone control all operations; no commission and additional fees;

  • there is no need to leverage;

  • you have the opportunity to sell the option before the specified time, receiving lower returns.

Let's talk more about binary auctions. The number of species of investing in the currency market is constantly growing. Trading binary options appeared relatively recently but has already gained great popularity among investors. This is due to the fact that already at the time of the transaction can be clearly calculate their potential gains and losses, that is, it is possible to more accurately control the risks.

Even in the event of failure of the forecast of 15% of your investment. A big plus in favor of this strategy that with most other strategies in case of failure you lose the whole bet. Trading will take account of only one parameter – the direction of the price change and the choice of put or call option.

Of course, to control and forecast changes in a single indicator it is much easier than to calculate a variety of indicators using other strategies. In this regard there is no need to have a very deep knowledge in currency trading on the Forex making available this super strategy even for beginners. It is also an important argument in favor of this strategy will be the amount of investments to start trading binary options requires a much smaller amount than the deposit in the classical investing on Forex.

Given the above it can be argued that this strategy is super excellent investment tool for both beginners and experienced traders who are tired of the constant account a variety of factors and indicators. Some simplification of binary options trading involves perhaps the most thorough definition of models and ways of trading and hence more accessible the possibility of increasing the initial deposit.

After all in binary options there are only two options. It either receives an additional amount, or only the cost of purchasing options.

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