Binary Options Tutorial
September 7th, 2010
People often ask themselves questions such as what can I gain from binary options? Well you can gain a lot from binary options, for example you can make very high profits. However, we will first speak about the advantages you have while trading binary options. There are a number of differences between regular options and binary options. Amongst the main differences and advantages, is the ability to choose the expiry time.
This is the case whichever asset you choose, whether with Forex, Indices, Commodities, or Equities. Many binary options companies, also known as binary options trading platforms, enable traders to choose from hourly, daily, weekly and monthly expiry times when they pick their option. Therefore, this increases the opportunities that traders have, as they have different short and long term moneymaking opportunities.
Binary Options Moneymaking – Part 1
With binary options, there are various moneymaking opportunities. For example, if you purchase a $1000 binary option of EUR/USD at 1.3583, and choose expiry time of end of hour, and pick the Call option (meaning that you expect the currency cross to finish above the current level), then if you are correct, or (what many binary option companies call) “in-the-money”, then you can make as much as $850 profit. At the moment, most binary options companies offer 85% on your initial investment. This means that if you invest $1000, then your return in this case would be $1850. Some binary option companies even offer traders a percentage of their initial investment back, even if their investment loses (or what many binary option companies call) “out-of-the-money”.
Binary Options Moneymaking – Part 2
It should be taken into account that if you trade binary options wisely, there is the opportunity to make big profits and high returns. Therefore, the moneymaking opportunities that binary options offer are real. Thus it is recommended that you try and follow the financial markets. This is the case whether you intend to invest your money in Stocks, Commodities, Indices or Forex. Doing this will increase your knowledge of what investments to take, and also you will gain knowledge of the different economic cycles. As a result, whether you are trading binary options for either the short or the long term, then you have the opportunity to make some very attractive returns on your money.
Choosing the Right Binary Options Company
There are a number of important thing to take into account prior to investing with the right binary options company. Please take note, that most; if not all binary options companies are online. Therefore, research can be done with the click of a button. Firstly, it is important that you have a choice of a variety of assets, as this increases your investment options. Additionally, it is advisable which company offers the highest returns. Conversely, also check which binary options company offers you returns, even if your binary options don’t go in the direction you wished, or out-of-the-money. Many of these binary options companies offer 15% return on your initial investment in this case.
Trade Binary Options Wisely
With reading all of the above, you now have the chance to trade binary options with ease. Remember! Practice makes perfect! What’s more, you should understand that there can be risks. But the most important skill is keeping these risks to a minimum. You will notice that as competition between binary options companies becomes greater, then so are the potential benefits that you reap. Therefore, it is advisable that you follow the latest new binary options trading platforms on the market. Good luck with your binary options trading experience! And don’t forget, it doesn’t hurt to constantly educate yourself about binary options.
September 7th, 2010
Understanding the binary options basics is the key to becoming a successful binary options trader. It is true that binary options basics are fairly simple, but despite this, there is a lot to learn. The different things that are important to fully understand when it comes to binary options basics are Call options, Put options, expiry level/time, investment amount, investing successfully, etc. Once you understand all of these binary options basics, then the earning potential is unlimited.
Binary Options Simplified
One of the most important things to know with binary options basics is what is an underlying asset? It is the stock, commodity, forex/currency pair or index that comprises the base for producing the particular option.
When it comes to binary options basics, there are 2 possibilities when the binary option is purchased. The first of these is a Call option. A Call option is made if you expect the particular asset to be higher than the current price at the chosen expiry time. For example, if you buy Silver at a price of $17.44, then you would employ a Call option if you expect this commodity to close above this level by the expiry time.
The second possibility when it comes to purchasing binary options is a Put option. This second possibility is crucial when it comes to binary options basics, as there are only 2 possibilities. A Put option is made if you expect the particular asset to be lower than the current price at the chosen expiry time. For example, if you buy Microsoft at a price of $23.54, then you would employ a Put option if you expect this stock/equity to close below this level by the expiry time.
The expiry time is crucial to binary options basics, and without this key feature of binary options basics, binary option trading would be impossible. Why is the expiry time so important to binary options basics? Well, in order to employ either a Call or Put Option, you need to pick an expiry time. With most binary option trading platforms, you have the choice of hourly, daily, weekly and monthly expiry times. This is so important to the binary options basics, because if you understand the financial markets, then adopting one of these expiry times will vastly improve your earnings potential, whether you are in it for the short, medium or long term.
The answer to investing successfully in binary options is to understand all of the binary options basics. Understanding the binary options basics does require you to study each of the basics individually. Once you have thoroughly studied the binary options basics independently, then understanding the binary options basics as a whole will be much easier. Once you’ve done this you will know all of the binary options basics off by heart, and be able to trade binary options successfully. Therefore, after investing successfully in binary options. you can teach the binary options basics to other people at ease.
September 7th, 2010
As binary options become more and more popular as an investment opportunity, due to less risks involved than other investments options, more questions have appeared from binary options traders throughout the world. Only recently, more answers have appeared to these questions. For example, we have seen the development of online binary options tutorials. These binary options tutorials come in all shapes and sizes, at a cost or for free.
How Do Binary Options Work?
This part of the binary options tutorial will discuss the way in which binary options work. Firstly, choose the binary option that you wish to invest. For example, the GBP/USD currency pair. Now you will need to pick which direction you expect the binary option to go. If you expect the currency pair to go higher, then you would employ Call. Conversely, if you expect the binary option to go lower, then you would employ a Put. The returns vary per asset. Also, a number of binary option trading platforms offer you returns, even if your binary option loses.
Binary Options Tutorial – Advanced
In this section of the binary options tutorial will more advanced details of binary options. It’s really fascinating that most binary options tutorials on the Internet fail to mention that the binary option only has to go only a margin in your favor, and you can earn attractive returns on your initial investments. For example, if the payout on an option is 70%, and you invest $100, then you would receive $170 if your option wins. Please note that you can pick an expiry time of end of hour, day, week or month.
Making Quick Money – Part 1
The problem with most binary options tutorials out there is that they fail to provide enough details about the simplicity of binary options trading, and making quick money. The thing is you can make money at ease with binary options. It’s so simple. All you need to do is to pick an option, pick a direction, and an expiry time, and your own your way. It’s also up to you how much you want to invest. But this all depends on the strategy that you choose.
Making Quick Money – Part 2
Here, this binary options tutorial will discuss the ease of making money with binary options compared to other investment methods. You should notice that many binary options tutorials on the internet do not discuss this comparison. If they do, they fail to go into details. The problem with the stock market compared to binary options, is that it requires a much larger investment. Additionally, you have to pay high commissions, and wait long periods of time for your returns.
But now you don’t have to wait for long to see your investments pay off. You should refer back to this binary options tutorial, as you attempt to build-up your binary options investments. With no spreads, no commissions, you reap the advantages.
Binary Options Tutorial – Summary
This binary options tutorial provides you with the common knowledge that you’ll need to get up and running, and be a successful binary options trader. The point of this binary options tutorial is to provide you with the basic tools that it takes to become a good binary options trader, while at the same time understanding when and when not to enter the market. When building up your trading portfolio, it is highly desirable that you deal with a few assets that you understand, rather than many assets that you are unfamiliar with. Therefore, you can keep your risks to a minimum.
September 7th, 2010
Traders in the financial world should be happy to know that they now have the great opportunity to trade binary options. This has only been possible through the advancement of both online technology and the development of binary options trading platforms. Learning how to trade binary options is really quite simple, as the main thing that you, “The Investor,” need to understand is firstly, about the strike price, secondly, how the expiry time works, thirdly, how a particular trading platform works, and lastly, knowledge of the markets.
Here we will cover the “strike price” or the price at which the option was purchased at. Please note that while you trade binary options, there will always be a strike price. Whenever you purchase a binary option, whether this is a forex option (example, EUR/USD), indices (Dow Jones), Commodity (Gold) or an Equity (example, Microsoft), it will be purchased at a strike price. The strike price is the price at which the option was purchased at. For example, Gold was purchased at the strike price of $1,158.6543.
If you want to trade binary options and be successful, then you need to understand the “expiry time”. When you start to trade binary options, you will soon learn that each binary option has an expiry time. For example, if you choose to trade Silver and wish to purchase it at a strike price of $17.88, then you will also need to pick an expiry time. As you trade binary options more often, this will become common knowledge. Skilled traders that trade binary options have the advantage of high choice, as they can choose between expiry times of either end of hour, end of day, end of week or end of month.
Binary Options Trading Platform
As the investor and trader, you have the choice of choosing to trade from the binary options trading platform that you wish. It is important to take into account, that in order to trade binary options successfully, you need to understand how each particular binary option trading platform actually works. Once you begin to trade binary options, it will become clear that virtually all binary options companies/binary options trading platforms are web based. This means that you can trade binary options with the click of a button and from any computer. After you trade binary options for a long enough period, in order to get the highest returns, it is recommended that you trade binary options with a platform that offers you the highest return on your investments.
Knowledge of the Markets
Those of you that wish to have the edge while you trade binary options; it is recommended that you increase your knowledge of the financial markets. Anyone can have beginners luck when they first trade binary options. However, if you want to trade binary options, and be successful in the long run, then it is advisable that you gain some advanced knowledge of the financial markets. Once you gain this knowledge, you will be able to trade binary options smoothly.
Those of you that want to trade binary options in the long term need to understand that it can be very challenging at times. So for those of you that are serious and are tactical when you trade binary options, then the good news is that if you face up to “the challenge”, there could be big rewards for you. This is largely due to the numerous choices of binary options that many different binary options trading platforms offer. Therefore, to face and overcome the challenge successfully, the best thing for you to do is to trade binary options with discipline.
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