Trading Binary Options

Thursday, October 14, 2010

There is a new trend in e-commerce, and this is binary options trading. As more and more people want to trade in global markets, it is very important to simplify the process of negotiating and make it easier for everyone.

The main reason why binary options are both great success nowadays is the fact that it is the simplest way of negotiation and people like simple things. You do not need to be an expert trader in order to understand how digital job options.The only thing you need to know to successfully negotiate binary options is the direction in which I placed on the market, no more problems with orders, calculate risk and reward, margin calls, placing stop losses and other complex parameters.

In binary options trading have only two choices: win or lose.Find out exactly how much you win or lose before buying choices. you don't need to worry about losing time, liquidity or margin calls. If you could buy a binary option with reward 75% and 10% return you'll receive 175% if the selection is the winner, or 10% If you are a loser.

Binary options have predefined deadlines, so you don't have to wait for the market to reach a certain level. Find out exactly how much time is left before the selection, making it much easier to handle your portfolio choices.

A simple example from options trading shows how easy it is to trade with the binary options.Suppose you think that the price of gold will increase by the end of the day.Will buy a call gold with a reward of 75% and the return of 10% from your broker with the period at the end of the day.If the closing price of Gold is higher than the price when you purchase option will give you profit 75% in less than one day.

Making the same gain over the same period would have been much harder with normal trading. If you purchase a CFD for Gold you don't know how much you'll earn up to the end of the day, even if the market will increase because it depends on the price difference. If it is only a small increase of profit will be very small. Another major shortcoming of normal trading is in danger of losing more than scheduled, if you do not use stop loss if you are using stop loss to avoid risky moves, you can end up hitting your stop loss before the market recovers and move toward the desired direction. in this way you can end up losing money, even if you correctly predicted the direction in which the price will go at the end of the day.

You can decide how much money you invest in any digital option, which means that you have full control over your investments and risks.

Taking into account all the above advantages, it is no wonder why more and more amateur and professional traders alike starts trading binary options and make a stable income outside of it.


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