Binary option trading is an exciting new field, and this is a short option trading tutorial covering the basics of binary trades and what all the buzz is about. Binary options trade on only the most liquid, well known securities and US dollar / forex cross rates – and profits are fixed based on whether the stock went up or down versus the spot price at the time of the trade. People can’t get enough of this field because of the fast paced nature of the trading and immediate results.
That doesn’t sound all that different from a regular option trading tutorial, however look at the words more closely. The payout on the contract is fixed. It doesn’t matter how much the stock moves… only the direction matters. The results are immediate. Contracts expire at the top of the hour or at the end of the day. A single small investment can be turned over multiple times during the day. An investor can buy a call at 11:15am, then buy a put at 11:35am and end up with both in the money (see an options trading system based on this concept).
The fast nature of this market, the high returns, and the immediate results are very attractive to investors seeking high returns. Add to that the low barriers to open trading accounts (all you need is $100) and it’s easy to see why so many are getting into the game – trading currency options, Nasdaq index options, and high flying stocks like Google.
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.