News and events as the major carriers of binary trading

News and events as the major carriers of binary trading

For successful work it is very important to choose a reliable broker, but before you start it is very important to read the reviews. These advertisements, sometimes very limited, flourish on the internet. This does not mean, however, that sites for online trading are scams. You just have to understand the risks (and the benefits) of online trading. Today, Captain ‘will introduce you to binary option trading. A binary option, or digital option, yields a fixed gain to the option buyer if the price of the underlying asset is higher than the strike price for a call, and lower than the price of the call option. Exercise for a put. You did not understand anything? No worries, let’s start from the beginning.

How to effectively trade on the news and events

It’s good you master the options “put” and “call” now? Let’s move on to the description of an option called “exotic”, with the example of a binary option (or digital option). The principle of the binary option is very slightly different from the classic options presented above (called “vanilla options”). Indeed, for a binary option, the gain is fixed.

Trading on stock news

An example of a digital option: you pay $ 1 to buy an exercise price call $ 34 and a fixed gain if you exercise $ 2. If the price after 3 months is less than $ 34, then you will have lost the premium dollar paid in the beginning. If the price is greater than $ 34 (whether $ 34.1 or $ 40), then your gain is fixed, and equals $ 2 (fixed gain on exercise), minus the premium paid (net gain).

So, want to become an options trader? Different platforms offer anyone to create an account and trade on hourly binary options But be careful with the choice of the platform! The Autorité des marchés financiers has published a list of unauthorized websites offering binary options trading, warning savers about aggressive online advertising campaigns on binary options trading. As of October 24, 2012, the following sites are not allowed to offer binary option trading by the AMF.

Choosing A Reliable Broker

Trading, in any case offered to beginners, is for the Captain ‘a kind of improved casino. But if you want to play the casino by trading, you can minimize the risks involved. Option trading allows this, via the limited loss to the committed amounts (unlike leverage trading, where losses can be huge, even in the case of small moves). But do not forget: the overall expectation of gain is negative. But if you want to have fun while learning more about how the financial markets work, then this is a good solution. It’s still more fun and rewarding than playing roulette.

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