Those transactions in financial markets are increasingly aware of the benefits of options binary bets/binary file generated by the family of products for the financial fixed odds. These products provide excellent alternative best known and most dangerous products such as spread betting and futures.
Firstly: binary bets as they are known to the United Kingdom and Binary options as they are known in the United States require much smaller size account to start with.The reason is that the amount risked to be stable and fully disclosed before the beginning of Commerce highly advantageous .this new traders that allows them to manage accounts more easily and effectively.
This is unlike a spreadbetting or a futures account requiring a margin before trading and this can mean often presenting several thousand pounds or dollars to an account.A trading position using these professions bets and Futures spread also builds stops to prevent catastrophe in volatile markets. these attitudes can often lost in a highly volatile markets leaving a trader with loss of much larger than expected; there is also an additional headache from trading hours where stops be harmed in a sometimes illogical way.
So here is an example of how betting binary/Boolean options in real trading environment compare with spread betting and futures.
Suppose we have tested our charts or regardless of the method used for predicting market movement and believe the Dow Jones Index is likely to increase in the next 24 hours by the closing price of 10,000.
First give a daily binary betting/binary choice and we are quoted price of 48 for the market to close higher than 10.000. 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 options is that it can never lose more than the agreed amount.This also means that you don't have to worry about knots like everyone else you are interested in is where the market over the next day.
Now we also spread betting or futures trading and we stop say 150 points away from our entry price of 10000, so I hope that our maximum loss on spread betting/Futures is $ 1500 is 150 times $ 10 per point.
Suppose in early trading on the day of the market plummeted. at this point if the market falls to below 9850 in our spreadbet will lose $ 1500/futures while our Binary betting/Binary option remains alive.
Let's also say that the market closes end 10010 appears ten-point increase in total profit with us a spread bet/futures despite our higher risk as shown above will be 10 times $ 10 per point just $ 100.
However our binary betting/binary pays the amount we agreed when opened the trade that is 0.00 $ 520.
There are many examples where a binary betting/binary option is much more sense than using higher farm products.
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