Archive for the ‘digital option trading’ Category

Digital Option Trading Tools

Monday, December 21st, 2009

In the financial world, digital option trading tools are investment tool that belongs to the exotic options family. Digital Option Trading Tool is also called binary options because the return is paid out as a fixed percentage of the amount you invested.

Advantages of Digital Option Trading Tool

What are some advantages of Digital Option Trading Tool?

Digital Option Trading Tools are investment tool, that allows traders and investors to get a high return on investment in a short time period.

For example, their are two functions on digital option trading tool tools, “call” and “put”. If you trade $100.00 and select the ‘Call’ option (that means you estimate the stock price will go up by expiration time). If at the time of expiration the stock went up by 0.00001%, that means it now worth’s $100.00001, you would get a high return up to 75%. In a regular stock option this change in the option would result in no return. However, by using the digital option trading tool you’ll get 60%-70% as long as it expires ‘In The Money’, no matter how much it went up! (or down, if you select the ‘Put’ option)

Digital Option Trading Tool are less risky than Forex trading

In addition to the high return up to 75%, another advantage of using the digital option trading tool is that their is no way you can lose more than the amount that you’ve invested. That way you don’t need to deal with ‘stop loss’ conditions and other tolls to hedge your money. In fact, some of the options (like OneHourOption) give investors back up to %15 of the amount even if the options is ‘out of the money’.

Are there advantages to Currency trading as opposed to Forex sites?

Trading with digital option trading tools is much safer than using the common Forex platforms on the market because their is not leverage and no need to deal with ‘stop loss’ conditions and other tolls to hedge your money.

One Hour Option Review

How do use the digital option trading tool on One Hour Option?

The digital option trading tool on OneHourOption is very simple to use. After registering for One Hour Option and putting your first amount of trading money into the account you can simply follow these steps:

Start in the Trading Area by clicking the ‘Trading Area’ link at the top of the page

Choose an option to trade from the list of available options

Choose the type of trade: either ‘Call’ or ‘Put’

Enter the amount you would like to trade (you can change the trade type (e.g,. from ‘Call’ to ‘Put’ or vice-versa even after entering an amount)

Click ‘Trade’ to execute your trade

The executed trade will be added to ‘My Open Trades’ on the sidebar for monitoring until expiration.

What if at the expiration time there was more than one trade and multiple trades had different prices?

An excellent question, since high volume stocks are traded more than once a second, and sometimes two or more trades can occur at the same exact time for slightly different prices. In such a case, the system will calculate the weighted average price of the security at the time.

What is weighted average?

A weighted average is calculated by taking all the trades that were made for the security at the exact second of expiration, and calculating their average price.

Let’s take an example. If the MSFT option was traded at 4:00:00PM as follows:

100 stocks for 28.72

200 stocks for 28.71

The weighted average for the stock is (100 x 28.72) + (200 x 28.71) / 300 = 28.71333. Since prices are rounded to two decimal points, the weighted average in this case is 28.71..

What if I disagree with the closing price of an option? (e.g. Google/Yahoo shows a different quote than OneHourOption)

No worries – you can just contact One Hour Option e at support@OneHourOption.com. They will send you an exact breakdown of how the final price was calculated.

What are the trading hours?

Since digital option trading tools are based on securities traded on NASDAQ and Commodity Exchanges, options can be traded only during the hours in which those securities are traded.

Mon. through Friday 9:30am – 4:00pm Eastern time. – NASDAQ

Mon. Through Fri. 3:30 am – 5:30pm EST – Commodities

urrency trading is available Mon. Through Fri. 3:30 am – 5:30pm EST – Currencies

How can I follow my trades?

The executed trade will be added to ‘My Open Trades’ on the sidebar for monitoring until expiration.

Does signing up to use One Hour Option cost anything?

No, signing up to use the platform is completely free.

Are their commitments?

No, OneHourOption does not impose any minimums or maximums on traders. This means their are no limits on trading times, withdrawals or traders found on other trading platforms.

Does One Hour Option charge any fees?

No, there are currently no fees being charged.

How Do You Sign Up with One Hour Option

Signing up with One Hour Option is very easy:

Click on the the sign up link here or on the top of every page

Fill in the requested details

Click ‘Register’

An e-mail is sent to you for e-mail address verification. Click on the link within the email.

Your account is now active and you can start trading.

Depositing Funds

How do I deposit funds into my digital option trading account?

To deposit funds into your digital option trading account, simply click the ‘Deposit’ link on the upper right-hand-corner of your screen. Enter your credit card information and your funds will be reflected immediately in your account.

Is there a minimum deposit amount?

In order to get the bonuses, the very first deposit must be $100 or more. All other deposits can be any amount from $10 up.

Is there a minimum amount per trade?

The minimum amount per trade is $30.

Is there a maximum amount per trade?

The maximum amount per trade is $1500. Also, the total maximum allowed for a single option is $1500.

Withdrawing Digital Options Returns

Are there any limitations to withdrawing money

OneHourOption does not impose any restrictions on traders for how much they withdrawal or the amount they deposit. You can withdrawal your money at anytime and get the money that you’ve won from the returns at any time as well.

Can I acquire the same option multiple times?

Yes! You can acquire the same option up to 4 times. As you become a more skilled digital option trading tool trader, you will find out that trading the same option multiple times is an excellent way to maximize your returns.

Does that mean I can acquire the same option 4 times, for $1500 each?

No. You are limited to a total maximum of $1500 per single option. You can own more than $1500 worth of different options simultaneously, but you can only own $1500 worth of any single option.

Start trading now with Digital Option Trading Tool and One Hour Option Trading platforms .

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Successful Digital Option Trading on Binary Option Trade

Sunday, December 6th, 2009

There have been lot of people who have made fortunes in this market by trading the digital options and looking at this in the recent times there have been many who try to do the same but then they fail to understand that it is not as easy at it looks like.

Below you can find the definitions of some of the basic terms that apply to digital options trading and a simple explanation of how to make a digital option trade.

Digital Option
A digital option, also referred to as a digital option or a fixed return option, is an option where the payout is determined at the onset of the contract. It pays a fixed amount of cash if the option expires in-the-money usually around 75%. When an option expires out of the money you will usually receive between 10 and 15% of your investment back.

What is an Underlying Asset?
A commodity, index, stock, currency pair or any other financial asset used in options trading

What is a Call Option?
An option that returns a profit when the underlying asset increases in price compared with the level it was purchased at.

What is a Put Option?
An option that returns a profit when the underlying asset depreciates relative to the purchase level.

What is the investment amount?
The amount of money that you invest in an option common limits per trade vary between $10 and $1000. The best idea is to start with a mid number like $500 and trade on a few digital options you know well. This way you can spread your investment and bring a high return on a few different digital options. If you will loose your option, you will be able to gain a small return up to 15% also.

How to invest?
To invest, you have to decide  between “call” or “put” options for a given underlying asset. Usually you can do this by  clicking on the call/put button which will open an investment sheet in the same box. You will be requested to enter the amount of the investment and to approve the trade.

What return do I receive when I make a successful trade?

A successful digital option investment will result in a guaranteed return indicated on the site for the underlying asset that you selected. So say for example you invested $100 with a return of 71% when the option expires in the money you will receive $171.

What return will I get in the event that the option expires out-of-the-money?
Most digital options trading platforms will give you back between 10 and 15% of your trade when an option expires out of the money.Having correct knowledge about the digital options trading in the trading market is very important and also advisable for all the traders. Having this correct and optimum level of knowledge about the market and options will help you to know as to what you as a trader exactly have to look for in the market and in the digital trading.

How to Be a Successful Digital Option Trader

The major part here is that the trader can be successful only if he has patience and the technical knowledge about the trade and the options. Discussed below are some of the points which may be considered while trading . This will not only give a view of how the trade has to be carried but also the things that have to be kept n mind while you trade into the market. Make use of the affordable amount in trade: Digital trading is considered to be very complicated.

Be Disciplined to Win Digital Option Trading

Having a disciplined approach towards this type of trading is very important. You should see to it that you do not invest more than what is actually affordable by you. Along with discipline you follow the trend of the market and go along with it. Opting for long term benefits, you should take care that you opt for long term benefits relating to digital trading. It is not advisable to be happy with short gains and also it is not good to get disappointed with the loss that you may make. It is advisable that you concentrate on the trades and look out for making higher profits in future. Reinvesting the money received form the trade is the best technique that can be helpful. Investing at the correct place so that you can see to it that you do not invest at those places where you have already made a loss.

Always Improve your Digital Option Strategy

Try to improve that strategy and also make amendments so as to gain better results and profits. Take correct advice Taking advice from experts or professionals for this kind of trading is very important and can also be helpful but it is important to see that the source from where the information comes is reliable and also whether the information is relevant or not.

By trading at a site such as Any Option.com you can experience the excitement of digital option trading and develop your trading skills.

Digital Option Trade recommends only the best Digital Option Trading Platforms:

AnyOption.com

OneHourOption.com

You can gain 75% on your investment within less than one hour.

How it works?

You just deposit minimum amount of $100 and bet if the stock go up or down. Once the stock is expired in the Money you will win 70 – 75% of your bet.

So simple, so easy. You don’t need to understand anything about stock options to win the game. its 50/50 chance to make great money.

Start to play now and get you bonus!

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Digital Option Trading on Binary Option Trade

Sunday, December 6th, 2009

Digital Option Trading are used by almost all retail traders across the globe.  Digital Option Trading are relatively cheap, simple and extremely liquid. Digital Option Trading are synonymous to “Binary Options” or “Fixed rate Options” or “All Or Nothing Options” or “Yes or No Options”. They owe their name to the digital nature of electronic devices which have only two states – “On” and “Off”. As the name suggests, when you enter into a Digital Option, you are either in an “On” state indication that you are in the money or in an “Off” state implying one is out of money.

Digital Option Trading are the simplest form of options from amongst the large number of option instruments available and traders enjoy playing with them.

The best way for investors to make high returns today is digital option trading. Originally from Europe, digital option trading has started to gain popularity within the past year globally, as traders look for ways to make high returns on a volatile recession market. Digital Option Trading is when a buyer accepts a contract to purchase an underlying asset at a fixed price at a time that is predetermined in the future. The trader  does not buy the asset itself, rather he/she takes the option to buy it. The fixed price at which the owner buys or sells at, is also known as the strike price.

Unlike the other options available for trading, the Digital Option Trading in finance imply a payoff method, the value of which does not depend on the magnitude by which the price of the underlying investment moves. Rather, the price of such an investment is determined initially right in the beginning at the onset of the contract. Also, the amount of money received in digital option trading trading is always the same irrespective of any external factor. 

So what is this Digital Option Trading Trade all about? In digital option trading, the potential gain or loss is a known fact at the start of the contract and it is determined by the amount invested by the owner. Hence there are only two possible outcomes: either the option expires in-the-money and the owner receives a 65-71% payout; or the option expires out-of-the-money and the owner receives nothing. However, if digital option trading is carried out with AnyOption.com, an owner receives a 15% payback if their option expires out of the money.

There are 3 aspects to the making a binary options trade, they are : the underlying asset, the expiry time and the direction the asset will move in.

The underlying asset is the item which is being traded. This can be one of a range of products: currencies (e.g. USD/GBP), commodities, stocks or indices.

The expiry time is the pre-determined time which defines the option’s end. The option can end at the end of the hour, the end of the week or even the end of the month.

Digital Option Trading sites like Any Option will allow you to trade options for a huge number of assets and make high returns.

The direction the asset will move can either be up (referred to as a call option) or down (referred to  as a put option). A buyer purchases a call option, if he/she thinks that by the expiry time, the asset will be above the strike price. He/She places a put option if he believes that by the expiry time, the asset’s price will be below its strike price.
As you can see this makes digital option trading very flexible and open to many traders from around the globe and make high returns.

In Digital Option Trading trade the investor receives a fixed payout only after the stock exceeds the predetermined threshold or strike price. Therefore, in this trade we need to predict the general direction in which the stock would move in along with estimating the quantum of increase or decrease that an underlying instrument will witness. An investor can take a call option if they predict an increase in the price of the underlying instrument. On the other hand, they can opt for a put option if the vice-versa is true.

Also, each digital option trading comes with an expiration date and a contract price. These two factors are used to determine the rise or fall in the contract price of the instrument. This is done by comparing the price of the underlying instrument on the expiration date to its underlying contract price.

Also remember that the exact price of the instrument does not in any way determine the amount of money you can win or lose in the digital option trading trade. Not only this, you also need to keep in mind that not all financial instruments support digital option trading trading.

By trading at a site such as Any Option.com you can experience the excitement of digital option trading and develop your trading skills.

Binary Option Trade recommends only the best Digital Option Trading Platforms:

AnyOption.com

OneHourOption.com

You can gain 75% on your investment within less than one hour.

How it works?

You just deposit minimum amount of $100 and bet if the stock go up or down. Once the stock is expired in the Money you will win 70 – 75% of your bet.

So simple, so easy. You don’t need to understand anything about stock options to win the game. its 50/50 chance to make great money.

Start to play now and get you bonus!

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Digital Option Trading on Binary Option Trade

Sunday, December 6th, 2009

You might feel strange by the idea of using digital option trading for day trading. However if the person knows about digital option trading thoroughly it will act as a partial hedge. Apart that it also gives an opportunity to you to make more profits. If the call and put options are used wisely, it can reduce the chances of risks to a great extent. So if the execution of a digital option trading is done properly then the chances of earning double profits increases considerably. In this way there are many benefits of utilizing digital option trading to get some extra money out of your investments.

A well planned digital option trade like other hedging strategies will have a great impact on the risk taken against your total holding. The trader should know that most of the digital options expire either at hourly bases or at the end of the day every time. if the price is 10$ per share and you earn profit of $200 if the prices go in the direction where you had predicted. If the price of the share has become $11 or anything more then 10$ then it depends upon you whether you want to hold the share or want to sell it of within the hourly expiration. Deciding whether to hold back or not depends on various factors. People rely on the news and many other sources that will help you to analyze the future market.

You can make use of partial hedging or full hedging.
This can be done by either selling all the shares or make use of both call and sell option in order to ensure some profits. If you fully match the call and put options before the expiration, it will reduce your risk. At the same time if you make use of partial hedging then there will be some risk attach to your trading. The trader will have to leave certain part of the trade open. This will allow the trader to trade the share in the way he thinks if he is sure. In this way if you match the contract and the expiration, one can earn huge profits without the involvement of taking any risk.

This type of hedging strategy will help the trader to make proper use of digital option trading. Although the strategy looks complicated and tough, it is indeed not. As a matter of fact, this digital option trading strategy is very simple and easy to understand. Anyone can implement it with digital option trading to add some extra income in your bank balance. 

There is lot of information available over the internet which the traders can refer in order to understand trading with digital option. In addition, a person with just $200 in his account can also invest in the market with the help of binary trading option. It is one of the best trading options for the people who wants to earn good money within a short period of time.

Digital Option Trade recommends only the best Digital Option Trading Platforms:

AnyOption.comOneHourOption.com

You can gain 75% on your investment within less than one hour.

How it works?

You just deposit minimum amount of $100 and bet if the stock go up or down. Once the stock is expired in the Money you will win 70 – 75% of your bet.

So simple, so easy. You don’t need to understand anything about stock options to win the game. its 50/50 chance to make great money.

Start to play now and get you bonus!

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Posted in digital option trading | No Comments »