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Binary Options, also called All-or-Nothing Options

| November 8, 2013

New technology has made Binary Options, also called All-or-Nothing Options or Digital Options accessible to public traders for the first time ever.

These financial tools can bring in money more quickly and with less trouble than ever before.
The terms “binary” and “digital” stem from the only two statuses or electrical or digital devices: ON and OFF.

When you trade with binary options you are either bringing in money, or ON, or out of money, or OFF.

Payout for these types of trade is stated upfront when you start the contract with the broker, some of whom offer returns approaching 85% on your investment.

The payout does not depend on the value of the asset or financial movements. All that matter is if you are in the money, or out of money. Even if you gain 1 cent, you will be paid the same amount as stated in the contract.

You can see why these binary options also go by the name all-or-nothing trades.

If you are in the money (ITM), you get paid a set amount. If you are out of money (OTM), you get nothing and lose your investment.
This may sound like a very risky way to do business in economic markets, but it is very exciting and can be very lucrative as well. Payout rates are considerably higher for binary options than in other, more traditional, trading methods.

Consider this equation to demonstrate a trading example for binary options:

A NASDAQ trader buys a $100 contract for a binary option with a payout of 81%.

The NASDAQ fund is trading at 2386 points at 12:00 NY Time. In this example, let’s say the option runs out at 13:00 NY time.
If the fund is trading at 2386 points or above when the call option expires, they will realize the agreed upon return of 81% plus his investment. That is a very impressive return on your investment.
If the fund does not trade over 2386 points when the call expires, he loses the $100.

Binary Option Benefits

binary options tradingBuyers of binary options recognize that their risk is limited to the amount they put into the fund to begin with. They cannot lose more than their initial investment. In the example outlined above, the only risk the call option buyer takes is that $100.

There is a greater sense of security when trading binary options because the possible negative outcomes are limited.

If they trade intelligently and do not use all their money on binary options, they will never become financially ruined because of them.

Discipline in any financial investment or trading situation is necessary.
The simplicity of binary options is also attractive to traders.

 

Everything depends on whether the underlying fund or financial market is trading at a particular point when the option call expires.

If so, you get an agreed-upon payout.

If not, you lose your initial outlay of money but nothing more.
Binary options can also be more exciting than more traditional investment possibilities because of the short time frames they can cover. It is possible to trade over an hour, or even just a half or quarter hour.

The Binary Options

The internet provides many methods for trading binary options with different strategies that suit different investor’s needs.
High/Low – This is the most common type of available digital or binary options. High/Low is also knows as Call/Put and Above and Below options.

In an Above option, the trader gets their payout if the market price ends up higher than the expected price. In a Below option, they get paid if it is below the strike at the end of the option.
One Touch – This type of digital option pays the trader the agreed-upon payout as soon as the market reaches the proper level is reached. The expiration time does not matter.

One Touch options can be found in both Above and Below varieties as well.trading options Binary Options, also called All-or-Nothing Options
Boundary – Boundary options offer an acceptable range of market ranges in which payout can be reached at the time of expiration.

If the market prices falls inside the allowed range or boundary, the trader gets their money. These can be both In range or Out range.

In ranges require the price to be within the acceptable range, and Out ranges pays if the result falls outside a particular range.
Read more in our Broker Recommendation section to determine how to find one that offers the varieties of options you want to explore and utilize.

Binary Options Strategies

| June 24, 2013

Welcome to SNSD.CC, your place for binary options strategies. 

Binary option trading strategies empower investors to optimize their potential for gain.

There are lots of different strategies that you can use when trading options, some are straightforward — ideal for beginners, as others are more complicated and better suited to seasoned investors.

 Binary options trading is a superb, easy, and quick way of making money for the stock market.

 By analyzing the binary solution strategies in the articles below, you will find the easiest method to make some quick cash in the stock market.

Basics of Binary Options

| September 10, 2014

Basics of Binary Options

You need to understand how the trade binary options differ from regular trading to understand this exciting form of trading.

Predetermined losses and profits are offered by the binary options in the same way that conventional trading is based on low and high trade concepts. Binary options never rely on price that moves away dramatically from the strike price so as to generate large profits.
In order to make speculations on the financial market’s price movements, a binary option trading is among the most reliable ways. After a matter of minutes, days or hours, the underlying concept is simply choosing on whether the price will be low or high than the strike price (current price). Basics of Binary Options

With this as taken as the start point on how the binary options work out, the binary options traders will have to decide when their options will run out.

The time of expiry will let you know if the options purchased are ‘out of money’ or ‘in the money as a result of whether you made the right call, lower or higher.
Before the binary options are even purchased, the returns provided by the options that are winning are agreed on.

These winning options are approximately 85%of the investment. During the lifetime of the binary options, potential losses are known before hand and therefore can’t in any way increase. In getting to know just how binary options work.

You should be aware of the fact that the options need to just expire a single tick lower or higher than the strike price so as to be regarded as profitable.

The ability to be profitable with a price movement that’s minimal and a highly controlled risk are thus provided for.
For those interested in learning on how to trade binary options, Bank of Trade and other similar platforms offer helpful educational spots. However, this binary options simplicity means that accounts can be opened, markets selected and investments chosen on low or high options by many new traders.

A trader can exactly see just how much the trade’s set to win and risk if they are correct once an expiry timeframe has been chosen.

How binary options work

Commodities, stocks, underlying real currency prices among others are what form binary options. Binary options prices are those seen by the professional traders therefore it is of importance to fully understand how they work. This also means that their methods of fundamental and technical analysis can be applied successfully to binary options.
Price does not have to swing in the investor’s favor. On the other hand, those who make predictions on the smallest short-term movements in a price end up many a times being very profitable.
To the experienced and new traders, the concept on binary options is particularly attractive. Although they have this feeling that the market will move in either direction, many of the potential speculators have avoided trading time and again since they aren’t sure if it’s worth investing in.
To further explain in detail how binary options work, a typical example is based on a market analysis. Here, a trader could be searching for gold but expecting a price increase due to the Middle East’s escalating political tensions.

Because the trader knows how to trade binary options online, he gets onto a platform the likes of Bank of Trade and a price is immediately quoted for him.

With a 75% return and 3 hour expiry, he buys 100 USD of call options since he thinks that the price may increase. With the fall of the stock markets comes the increase of the real gold price that in another 3 hours will the points get higher than the original strike price. With a 75 USD profit, the binary options have run out in the money in just the ten minutes taken to learn how to trade binary options and the 3 hour expiry. This is just an introduction introduction to binary strategies more info can be gained here.

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