Successful weekly trade on financial markets

Tuesday, November 16, 2010

Much is taking place today on the trading of financial markets, whether it's a true Major such as Dow Jones, S & P500, FTSE100 or Forex markets like the US dollar/British pound or euro in intraday basis.

Intraday means simply looking for trading opportunities to buy and sell on the market during market hours.

It is a much easier and marketed on a weekly basis.In other words, you place a trade that run regularly from Friday to Friday, and then don't touch. Trading weekly increasingly popular simply because most people don't want to be stuck in front of a screen all day making distribution. it must also be said that for most people trading day is the fastest way to lose money just because people tend to trade very often without a reasonable money management strategy.

So which products offer weekly professions?

Well there are some products offering specific weekly trade shall include financial fixed odds offered by companies like Betonmarkets and latest binary bets (as they are known to the United Kingdom) and Boolean options (as they are known in the United States) as provided by companies such as IG Index and Anyoption.

For example a typical weekly trade be. Suppose we expect FTSE100 UK market over the next week we will grow our account to enter indexed IG and request a quote for a Boolean weekly FTSE100 until the bet.Suppose we are quoted price of 48.

As binary betting and Boolean options operate on a 0-100 band this means simply that if we accept this value will either win 52 is 100 minus cost of our times is 48, per point risk (say $ 10 per point) total win $ 520 or could lose 48 (cost of trade) times per point our risk (say $ 10 per point) total loss of $ 480.One of the main advantages of binary bets/binary choices can never lose more than the agreed amount.

No need for stoplosses

This means that you don't have to worry about knots like everyone else you are interested in is where the market finishes the following Friday. If you used a spread betting or forward transactions and market fell sharply say 300 points during the first few days of the week almost certainly will stop using these products and receives an heavy loss in this case 3000 loss.

However, if using binary bets or binary options if the market fell by 300 units over the first couple of days to be lose anything. Because you are only interested in whether the market closes at the end of the week higher than last Friday ... so even if the market ended just 1 point higher during the week you'll earn $ 520. And if the market ended 400 points you only ever could lose a maximum of $ 480.

From this example may start to see why trading weekly with financial fixed odds bets and binary, binary options is a fairly attractive alternative for high leveraged products such as spreadbetting and transactions on forward.


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