Skip to main content

Posts

Showing posts with the label binary options

Risk Management in Binary Options Trading

Risk management in trading is indispensible, if you want to succeed in the binary options market.  If you do not have a proper risk management plan you may not be able to achieve success in this volatile market. As a trader you need to understand that it is not easy to make consistent profits in this market.  There are inherent risks associated with this market and if you are not careful you may lose big money and all your investments within a few trades. Managing risks in binary options trading  Irrespective of whether you are a beginner or experienced trader, you need to have a proper plan for every trade.  A well made plan can enable you to take your first step into successful trading. After you have made a good trading plan it is important that you stick with it. If you keep making changes to the plan at regular intervals, you may not be able to benefit from it. Placing emotional and impulsive trades can also result in big losses.  When you let emotions cloud yo

Entry/exit Strategy in trading

Binary options are an interesting investment opportunity for traders and each individual needs to have a strategy so that they are able to minimize loss and maximize profits. One aspect that is often overlooked by traders is entry/exit strategy. The strategy that you choose can reflect your individual trading style. Entry strategy Many factors determine the proper entry strategy, you choose when trading. They include the type of investor (speculative or conservative) you are, asset class, whether you follow fundamental or technical analysis and short term or long term asset movement.  The asset classes that are traded in binary options include stocks, currencies, commodities, indices and bonds. Depending on the asset you wish to trade, you can choose your strategy. The best entry strategy includes investing only a part of the underlying asset, if you do not want to risk the entire investment.  The other aspect that the trader needs to concentrate on is volatility. High vol

Computer Industry & Binary Options

The computer industry has grown at a phenomenal rate in the past few decades and everything is driven by computers nowadays. Computer industry & binary options offer many trading opportunities to traders. Many stocks from the computer industry are offered for trading in the binary market.  When you follow the stocks, you may be able to determine a pattern. These may be short term or long term patterns and enable you to place a profitable trade. As a trader you need to pay close attention to several factors before you choose to invest in stocks pertaining to the computer industry. The strength of the company, innovation and management may be just some of the factors that need to be considered. Industry strength – The computer industry is considered a mature industry that provides growth opportunities to both new and existing companies. The industry is strong and growing at a fast pace. The stocks of companies in this industry have provided consistent returns to their

Binary Options vs Traditional Options

The difference between binary options vs traditional options is in its trade structure. Although there are differences they are also similar in many ways. Underlying assets are traded in both markets and they have a predetermined expiry period or date that is determined before placing a trade.  The different types of assets that are traded in both the markets are also similar with some assets not traded in the binary market. Binary options It is a simple and structured way of trading where traders bet on two possible outcomes in a trade.  The trader may be able to get a fixed return as all trades must go to the expiry period before the outcome is decided. In binary options the traders are obligated to exercise the option when they expire. In this market complex price quotation systems are not there and instead traders may make use of the market price of the underlying asset to evaluate the performance of the trade they had placed.  The basic options include high/low, ran

Binary Options vs Forex

Before you start trading it is important that you are aware of the differences between binary options vs forex, so that you are able to choose the trading method that suits your individual style and preference. Forex trading is speculating the value of one currency with the other.  The currencies are always traded in pairs. In binary options the trader predicts whether the price of the underlying asset increases or decreases over a period of time. Margin Margin can be used to trade in forex. Brokers decide the margin that can be used in trading.  It can be 1:200, 1:400 or 1:500. This allows traders to increase the investment that they can make in the market so that they are able to make a larger trade and profit even with a small account.  In binary options margin is not used for trading. It is still an attractive option for traders as they may be able to make big profits. You never get a margin call in this trade. Payout and losses The maximum profit that y