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New Binary Trading Book

Wednesday, December 30th, 2009

Description of Binary Betting
The world of betting is changing dramatically – say hello to Binary Betting.

In recent years betting on sporting events and the trading of financial markets have been moving closer to each other, and binary bets are the result of this convergence. Binary bets combine the attractions of sports betting with the flexibility of the financial markets.

Binary bets allow punters to:

- Bet on hundreds of different sporting and financial markets
- Close out bets before the event takes place
- Profit from spectacular price moves
- Bet in unusual and unexpected ways – experienced traders will love this

This is the first book on binary betting and explains in simple language what binary bets are, how to trade them profitably and how to reduce risk. Within the book there are many real-life examples of binary betting trades and minute-by-minute analysis of binary price behaviour. In addition the book includes inside tips from an experienced trader who uses binary bets in his trading day in and day out – discover the bet that pays out even when you get it totally wrong!

Find out what makes binary betting the fastest growing area of betting and why traders are switching to the new exciting world of binary bets.

[Show Reviews]
Reviews
“An impressive, thoughtful and readily comprehensible explanation of binary betting.”
- Guy Riches, Capital Spreads

“A great piece of work. Well done!”
- Nick Maughan, BetsForTraders.com

“Very comprehensive and well written.”
- Will Hardy, IG Index

“Immensely readable and my few misconceptions corrected almost immediately. Wish the book had been around a few years ago when I took a look at Binaries and decided to stay with Spreads.”
Michael Sheldon

* Once upon a time, for the vast majority who liked a punt, their only recourse was fixed-odds betting. You picked the event you wanted to punt on (usually sporting), you’d find a bookie who would quote you odds, you’d decide how much you were willing to gamble, place your money and await the outcome. If the even went in your favour, you would collect the winnings; if it went against you, you lost your stake money. And betting shops were such filthy places, populated by a collection of needle-eyed, chain-smoking Chavs and Ninjas (No Income, No Job or Assets), that it took more courage to enter the establishment than it took to potentially lose your stake money. But, just as recent society has cleaved a sharp barrier between the benefit-fed and the wage slave, so recent advances in technology and the fact spread betting has breached the confines of The City means investors can knit hedge funds from the comfort of their armchairs. Spread betting is versatile, quick and easy. You can trade a number of different financial products on one account and deal sizes are flexible so you can bet in amounts that feel comfortable to you. More importantly, it doesn’t nail your feet to the floor with the fact you have to be in the bet for the duration (like a horse race or footie match), as you can get in and out at any time. Once you’ve discovered spread betting, you’ll leave fixed-odds betting to Chavs and Ninjas. Perhaps the most high-profile trader is spread betting Guru, John Piper who made his first trade in the early 1980s and has been driving Porsches ever since. Piper is no stranger to writing books on trading, as his The Way to Trade proves. In the gospel according to John Piper, trading is a life experience – it is not like any other business. The beauty of trading is that it becomes an expression of your own personality. The truth, says Piper, is that good traders don’t do – they simply are. And to become a good trader you have to create a model built around an approach that suits you. The Way to Trade is Piper’s way of helping you do just that. The book introduces a way that allows traders to discover and explore their individual trading personality, isolating strengths and weaknesses to construct and apply trading systems with confidence and discipline in the face of the “herd” instincts in the markets. Piper’s credo is that old Chinese proverb of “give a man a fish and he eats for a day; teach him to fish and he’ll eat for a lifetime”. Rather than write a book that would be the trading equivalent of Sinatra’s My Way, Piper seeks to help traders develop an approach to the markets that is based on their own perceptions and notions of greed, fear, loss, etc. As John Piper himself once said to me: “There’s no point passing on your fear of spiders to someone who’s not afraid of spiders, but who has a morbid fear of snakes”. Quite. But the world of trading is changing dramatically – so say hello to Binary Betting, both the concept and Piper’s new book. Piper is generous to acknowledge Sally Nicoll as the person who introduced him to the concept of binary betting. There’s a neat symmetry here, as it was Piper who helped Nicoll – then a novice trader – to develop her own system of trading, which she outlined in the book Bets and the City. So Nicoll outlined the concept to Piper who, he admits in the introduction of this book, became a convert and was quickly hooked. In recent years betting on sporting events and the trading of financial markets have been moving closer to each other, and binary bets are the result of this convergence. Binary bets combine the attractions of sports betting with the flexibility of the financial markets. Binary bets allow punters to bet on hundreds of different sporting and financial markets, close out bets before the event takes place, profit from spectacular price moves and bet in unusual and unexpected ways. To my knowledge, this is the first book on binary betting and explains in simple language what binary bets are, how to trade them profitably and how to reduce risk. Within the book there are many real-life examples of binary betting trades and minute-by-minute analysis of binary price behaviour. In addition the book includes inside tips from an experienced trader who uses binary bets in his trading day in and day out. Piper even outlines the bet that pays out even when you get it totally wrong! To understand what a binary bet is, you must first understand what a bet is and the opening chapter concerns this (don’t be tempted to skip it – it’s an important primer for what comes in the later chapters). As with The Way to Trade, Piper’s aim is get you thinking about binary betting as it relates to you, rather than cosh you with what he thinks you should do. The first four chapters – A Quick Overview of Betting, What is a Binary Bet?, Trading Binary Bets, Different Types of Binary Bets – work towards chapter 5 – Getting Started. In this important chapter, Piper outlines how to choose a binary betting company, open an account, viewing charts, funding your account (margining), placing a bet, closing a bet, bet size, limits and stops, monitoring positions, dealing times, times to trade and spreads. Piper admits (in the Real-Life Trading Examples and Ten Binary Betting Tips chapters) that binary betting is addictive and that anybody starting out with very little trading experience with spread betting should limit themselves to bets of 1p per point. I’d also recommend those interested in binary bets read this book. Like The Way to Trade, it’s a cross between a workbook/guidebook and a self-help manual. But just as any sensible person would never attempt to trek through a jungle without first boning up on the dangerous beasties that inhabit it, so you should never blunder into a market to trade something you only dimly understand the concept of. Especially not when you can have someone as experienced as John Piper as your guide.
Margaret Moore

Contents of Binary Betting
About the Author
Acknowledgements
Preface

Introduction
Who should read this book
Why you need this book
How this book is structured

1. A Quick Overview of Betting
Betting
Types of betting
Summary

2. What is a Binary Bet?
Comparison with other fixed-odds betting
Complementary binary bets
Risk and reward
Binary bets – the market today
Summary

3. Trading Binary Bets
Binary betting prices are continually changing
Closing out a bet early
Trading bets
Summary

4. Different Types of Binary Bets
IG Inde – financial bets
IG Inde – sports bets
Betfair – financial
Betfair – sports
BetOnMarkets – financial only
BetsForTraders – financial only
HedgeStreet Inc – financial only
ChoiceOdds – financial only
Summary

5. Getting Started
Choosing a binary betting company
Opening an account
Logging in
Viewing charts
Funding your account (margining)
Placing a bet
Closing a bet
Telephone
Bet size
Limits and stops
Monitoring positions
Dealing times and times to trade
Spreads
Taxfree
Regulation and compliance
Commissions
Taking profits
Summary

6. Real-Life Trading Examples
Six trades
Summary

7. Ten Binary Betting Tips

Appendices
I Directory of Binary Betting Companies
II Differences between spread betting and binary bets
III Different ways of expressing fixed-odds bets
Index

John Piper has been involved with markets since his early twenties. In the late 1980s he started to trade options full time and did so right through the Crash of 1987 – an experience that stands him in good stead for markets today.

For over a decade he has been the editor of The Technical Trader, the leading newsletter in the UK for those who trade futures and options markets worldwide. His articles bring a fine edge of analysis to markets and how they work.

He trades full time, making consistent profits, and now manages money for selected clients at Berkeley Futures Ltd, a firm regulated by the SFA. He lives in Cobham, Surrey and in Massa, Italy.

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binary betting

Wednesday, December 30th, 2009

BINARY OPTION TRADE binary betting.

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High Return Investments for Next Week – Binary Option Trade Recommendation

Sunday, December 6th, 2009

On the docket

Monday: Fed Chairman Ben Bernanke speaks about the economic outlook and Fed policy at the Economic Club of Washington in the early afternoon.

Fed Vice-Chairman William Dudley speaks in the late afternoon.

A report on October consumer credit is also due in the afternoon, but it’s not usually a market mover.

Expect Monday to be slow and steady. The big market moving reports were given last week, especially the news about the job loss slow and the market recovery. If you want to make a high return on Monday, you should pick slow and steady stocks, currencies and commodities in the late afternoon, after Federal Chairman Ben Bernanke announces his news.

Tuesday: President Obama speaks about the economy at the Brookings Institution in Washington.

Intel (INTC, Fortune 500), Microsoft (MSFT, Fortune 500) and Netflix (NFLX) are among the companies due to attend Barclays Technology conference in San Francisco.

JPMorgan Chase (JPM, Fortune 500), MasterCard (MA, Fortune 500) and Regions Financial (RF, Fortune 500) are among the companies due to attend the Goldman Sachs U.S. Financial Services conference in New York.

After the close, chipmaker Texas Instruments (TXN, Fortune 500) issues its mid-quarter update.

If you want to make a high return on Tuesday look for news about Microsoft and Barclays Technology in San Francisco. Last week was a hard week for Microsoft, as Google their main competitor launched the Google Diction and delt another crushing blog to Bing, Microsoft’s weak search engine project.

Wednesday: RealtyTrac releases its November foreclosure report.

The Commerce Department is expected to report in the morning that wholesale inventories for October fell 0.6% after falling 0.9% in the previous month.

The government’s weekly crude oil inventories report is also due in the morning.

CNNMoney.com parent Time Warner (TWX, Fortune 500) completes its spinoff of AOL.

In the morning, news about crude oil will come out. So expect that stocks will be slow and steady until the news comes out. Their might even be a spike or drop in anticipation of the news — so try not to trade on oil binary options in the morning, it looks to be a bit volatile. Wait until mid afternoon and then place your bet on oil because the news will surely provide binary option traders with a market trend that they can follow all the way to the bank.

Thursday: The October trade balance from the Commerce Department is due before the markets open. The trade gap is expected to have widened to $37.1 billion from $36.5 billion in September.

The flow of funds report from the Federal Reserve is due around noon. The report is likely to show that household net worth continued to fall in the second quarter, along with home values.

The Labor Department’s weekly jobless claims report is due out in the morning. The Treasury budget is due in the afternoon.

Treasury Secretary Timothy Geithner testifies before the Congressional Oversight Committee.

Federal Reserve Governor Elizabeth A. Duke speaks in Chicago on Mortgage Foreclosure policy.

All banks are going to be a bit jittery on Thursday in anticipation of alot of big news about the housing market. Binary option traders should take this opportunity to follow the jobless report and bet on stocks that have just hired people — these stocks will continue to go strong throughout the day.

Friday: The November retail sales report from the Commerce Department is due in the morning. Sales are expected to have risen 0.5% after rising 1.4% in the previous month. Sales excluding autos are expected to have risen 0.5% in November after rising 0.2% in the previous month.

The University of Michigan’s preliminary consumer sentiment index for December is due just after the start of trading. Sentiment is expected to have improved to 68.5 from 67.4 in late November.

Reports on October business inventories and November import and export prices are also due.

Invest in auto and retail Friday morning. Because of the holidays and black Friday, nearly all sales will have come up, so take your Christmas present home early Friday by trading binary options Walmart and other retail options.

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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What Option to Trade on Monday – Binary Option Trade Recommendation

Sunday, December 6th, 2009

How to Read Finance News and Make a High Yield Bet Next Week

Here I am going to be helping readers pick through an article published in CNNMoney.com today. That way you’ll see just how easy it is to make a high yield bet with binary option trading.

NEW YORK (CNNMoney.com) — Wall Street has finally gotten the piece of economic news it has been waiting for: the battered labor market may be starting to heal. But with major stock gauges at their highest levels in more than a year, recovery bets could already be baked into the cake.

The week ahead brings a modest array of economic reports. Highlights include readings on retail sales, consumer sentiment and the trade gap. President Obama and Federal Reserve Chairman Ben Bernanke are among the speakers on tap. But none of these events are likely to change the markets’ direction much.

What does this mean for binary option betting? That many of the stocks will not jump on Monday, they will continue in the same direction even with President Obama and Ben Bernakes comments. If you’re a binary option trader, investor or player, this means that you can expect that many of the stocks will continue steadily from Friday to Monday when stock market and binary option betting opens.

Through the end of 2009 and the first quarter of 2010, stocks are bound to stick to a narrow range, as investors hold onto gains off March lows and seek the next catalyst, said Jamie Cox, managing partner at Harris Financial Group.

“The broad averages are probably going to go sideways and for a while,” Cox said. “It’s not going to be as hard or as easy as it’s been in the last 24 months, where everything rose, everything fell, then everything rose again. The next few months are going to be stock by stock.”

For binary option traders, you can expect that before the new year, the majority of stocks will remain very steady and that the market will most likely not become volatile. This can be good for binary option traders who have to predict whether stocks will rise and fall in one hour, one week or even one month. A quieter market will enable them to follow the trends — upwards or downwards — and bid on the slow, steady continuation of stocks, commodities and currencies.

Jobs report lifts spirits: Employers cut 11,000 jobs from their payrolls last month, the Labor Department reported Friday. It was the smallest number of job losses since the start of the recession in December 2007. The unemployment rate, generated by a separate survey, fell to 10% from a 26-year high of 10.2% in October.

Job losses from the previous two months were revised lower too, indicating that a slow but steady pattern of lessening job cuts is emerging. But the drop in the unemployment rate is also points to the millions of people who have been out of work so long that they’ve given up looking for a job.

“It’s going to be years until we get back to where we were in 2007, but this report is a clear sign that the labor market is improving,” said Phil Orlando, chief equity market strategist at Federated Investors.

Watch those labor statistics. If you want to know whether a binary option will rise of fall, check to see if the company is hiring or laying off. This is a great way to determine what binary options to trade on and making sure that you’ll be able to make a high return investment.

Bets that the recession was ending — combined with substantial fiscal and monetary stimulus — drove stocks higher over the last 9 months. The Dow (INDU) has risen 59% as of Friday’s close since bottoming at a 12-year low on March 9.

Following the release of Friday’s jobs report, the blue-chip average and the S&P 500 (SPX) both hit 14-month highs, touching levels not seen since just after the collapse of Lehman Brothers last year. The Nasdaq (COMP) is also near 14-month levels.

While the gains off the lows have been tremendous, most investors have still not recovered the bulk of what they lost in the slow market crash of 2008 through early 2009. The wish to recover more of what was lost — and the need to put to work the trillions still sitting in cash or other low-yielding holdings — should give stocks a continued upward bias, the analysts said.

But at the very least it’s likely to be much more slow going than it was for most of this year, even with signs of the labor market starting to recover.

“It’s going to be a slow slog for the labor market, but I think stocks can continue to grind higher from here,” said Orlando.

Alright, slow can be good. Why because it gives you a little more added security to trade in a market that you know will continue slow and steady. That way, when trading binary options, you can pick the call or the put based on past trends and have a higher chance of making a high return and predicting the binary options correctly.

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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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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Binary Betting on Binary Option Trade

Sunday, December 6th, 2009

You might feel strange by the idea of using binary betting for day trading. However if the person knows about binary betting 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 binary betting is done properly then the chances of earning double profits increases considerably. In this way there are many benefits of utilizing binary betting to get some extra money out of your investments.

A well planned binary betting 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 binary bettings 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 binary betting. Although the strategy looks complicated and tough, it is indeed not. As a matter of fact, this binary betting strategy is very simple and easy to understand. Anyone can implement it with binary betting 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 binary betting. 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.

Binary Betting Trade recommends only the best Binary Betting 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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Binary Option Trading Strategy

Saturday, December 5th, 2009

Do you want to be successful at binary option trading? If yes it is very essential from your part to have thorough knowledge regarding the stock market. This is because keeping yourself updated with the required information prior to getting started with binary option trading is always a fruitful way to trade or else it becomes very difficult to survive in the market due to its competition which leads you to lose. As your money is involved in the trade it is very crucial that you take this matter very seriously.

To get success in binary option trading takes good observational skill, complete knowledge of market and dedications from your side are required. But you need not worry here are some guidelines that will help you out in your binary options trading:

Guideline no 1 binary option trading: small investment


Binary options trading are referred to as very complex and doubtful trading wherein profit cannot be guaranteed. Those that are experienced as well as experts also cannot guarantee to success in this type of trading. Hence it is always advisable that you make small investments in forex binary trading. The amount that you can afford to lose should be invested in this option trading.

Guideline no 2 binary option trading: Try to adopt the strategies that are successful in the past


In the past there have been several binary option trading strategies that have been tried and tested and so it is recommended that to follow those binary option trading strategies instead of creating a new one by your own. The reason behind this is that these binary option trading strategies have been worked before and the experience is always better than the guesswork in forex binary trading.

Guideline no 3 binary option trading: Concentrate and be disciplined


The key to success is concentrating and losing it is not affordable. Therefore you are required to be more focused and have strong determination towards being successful in binary options trading. Any trade or work demands discipline and so it is important from your part to have it while your trade as lack of it can leave you with failure in forex binary option trading.

Guideline no 4 binary option trading: Expand your trading


As said earlier small investments are better at initial stages and then as you start being successful you can think of more investments from your part. Reinvestment can be done in binary option trading for gaining more returns.

Guideline no 5 binary option trading: Avoid losing


High risk trades should not be preferred for investments rather consider investing low and also keep yourself updated which will help you to earn good binary option trading returns.

Guideline no 6 binary option trading: Take recommendations


There are expert binary option trading websites, like Binary Option Trade .com, that can help you. The best way to reach them is through internet. There are many forums on many websites wherein you can carry discussions and solve your query about binary options trading in details. But then you need to be careful as totally relying on them will not help you.
These are some of the binary option trading guidelines that can help you out with binary option trading. One more thing that is very essential is that you need to keep yourself cool at the time of binary option trading.

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Binary Option Trade – Binary Option Trading Strategy

Saturday, December 5th, 2009

Binary Option Trade – Know What Risks To Take When

When trading binary options online, it’s important to know when to buy and when to sell. Binary option trading is very flexible and allows binary option traders to buy options that expire between one month and one hour. However, the most skilled binary option traders should be trading within one hour, because this is where the fast, easy money can be made from home.

The best binary option trading strategy is to follow the news and current events. While this is a well known strategy for the most successful binary option traders, many amateurs tend to over look it–meaning that it’s a great strategy for beginning binary option trading.

For example, their are many known news announcements on a public company such as an earnings, mergers, acquisitions, bonus reductions and more.  Traders are always waiting patiently, prior to the release of such information and announcements (the date an time of the official earnings release of listed securities is always known well in advance). Even though rumors often come to fruition, regular stock market and FOREX traders have to wait for favorable news to come out. However, for binary option trading, traders don’t have to concern themselves with favorable news, instead binary option trading can provide traders with high returns even if the stock option looses value–this means their is double the opportunity for news–especially news during the recession. Binary option trading can earn traders cash whether a stock gains or looses value.

Do your Home Work Before Trading Binary Options


So you’re inevitably asking yourself, “How can I take advantage of this?” and the answer is do your homework on the specific binary options that you day trade. When do they typically make announcements, how does the market for the common stock trade going into those announcements (do they run up on rumors of favorable results? How quickly? How much?  Where does the spike fall relative to binary option expiration?)?  The answers to these questions can give you an edge in setting your binary option trading strategies for that security.

The best place to look for hot news is of course here, on Binary Option Trade .com , but because we don’t want to be too biased, follow Google News and Yahoo Finance, they are some of the fastest, most up to date news sources available online.

How Binary Option Trading Works – An Example

Consider an example in the trading of Google XYZ.  Let’s presume that they’re widely expected to post favorable results at their announcement at 3:30PM today.  Given the time of day of the announcement and the broadly expected result, one wouldn’t be surprised to see a small run-up in the stock leading up to the announcement. 

If you’ve done your homework, and have followed google, or similar stocks, you’ll know how the market reacts when traders are expecting news. Therefore, you’re likely to see a small pull back before the announcement, and trade a put binary option prior to the trading halt leading to the earnings release.

Results Will Be Sporadic – But Add This Option Trading Strategy to Your Arsenal


Consistent binary option trading market earnings are not made by having one catch-all strategy.  Big earnings are made in very short bursts using a variety of strategies exploiting irregularities in market timing, imbalances of trade flow, and socio-psychological irrational behavior.  Your ability to capitalize on daily transactions increases with the number and variety of trading strategies you are able to master and finance.  Taking advantage of the timing of trading transactions by using binary option trading, rather than investing in the net results of a options direction is another way that a one hour binary option trading strategy can be deployed.   This strategy hinges on the use of binary option trading online, a much cheaper, faster and higher return option in comparison to hiring a broker and trading on the typical exotic options market.

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Why Binary Option Trading

Thursday, December 3rd, 2009

In order to understand binary option trading it is useful to get a general idea of what a traditional trading is and how it works.

The “regular” binary option tradings are contracts where the buyer pays for the right to buy or sell an underlying asset at a given price, whereas a binary option trading is a contract where the buyer pays for the right to receive a fixed return in case the price of the underlying asset ends up above or below the strike price.

Indeed, binary option trading is not trading options in the traditional sense of the word, because unlike the original instrument, binary option trading trading do not give you the right to buy or sell the underlying asset, but instead they only give you the right to get a fixed return (usually around 65%-81%) .

So, let us say that you want to buy a CALL option on Google, if you buy a regular option contract, and the price of the stock ends up above the strike price by the expiration date (which is the 3rd Friday of each month), then you will be able to exercise the right to purchase the stock at that price regardless of its current trading price.

In this case your profit could come in two ways:

1. You could sell the “in the money option” before expiration and make a profit from the difference between the purchase price of the contract and the selling price (which will obviously be higher because it is in the money).

2. You could simply wait until the contract has expired and buy the stock at the price of the strike and then sell it at the binary option trading price thus making a profit from the difference between the strike price and the trading price.

In both cases your profit will depend on the magnitude of the movement in the price of the stock.

However, it is important to note that if your contract expires out of the money it becomes worthless and you would lose 100% of your investment in this case.

Now, if you where to buy a binary option trading CALL on Google your profits would realize in a completely different fashion:

1. Binary Option Trading contracts do not expire monthly, but hourly or daily, which means that your profits (or losses) realize within these time frames.

2. A binary option trading contract will pay you the fixed return (usually between 65%-81%) regardless of the magnitude of the movement in the price of the underlying asset, as long as it expires in the money by at least $0.001.

This is the very reason why binary option trading has their name, because the outcome is always black or white, “all or nothing” even if your contract ends up ” in” or “out” of the money by a cent, if you are in the money you get the full return (65%-81%) and if you are out of the money you get to recover only around 5% or nothing depending on the broker.

With binary option trading it will not matter if Google shares went up $1 or $40 above the strike price of your contract (assuming you purchased a CALL option), you will get paid the same return either way, whereas in a traditional option contract your return will depend entirely on the magnitude of the movement in the price of the stock.

So, binary option trading is a contract with a life span of one hour or one day that you can buy on certain assets like stocks, currencies, indexes or commodities, where your right is always limited to a fixed return in case they expire in the money by at least one cent.

Start using the best binary options trading platforms today. Our recommended platforms are:

One Hour Option .com
Any Option .com

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What is Binary Option Trading?

Thursday, December 3rd, 2009

What is Binary Option Trading?

Binary Options trading is one of fastest growing trading products. Binary option trading is a fixed-odds-return investment tool that has two possible outcomes with a structured reward and risk, hence the word ‘binary’.

Binary option trading is considered a mass market financial instrument that gives traders the power to make fast, high returns without the complexities involved trading traditional regular options. Whether you are looking for a short term speculation or hedging you portfolio, binary option trading can help you get high payout within short amount of time.

What Assets Are Available with Binary Option Trading?

Binary option trading is available on a variety of assets: Stocks, Commodities, Currencies and Indices. Depending up on whether the trader has made a call or put, if at the end of the contract expiration the trader has been successful in determining the direction of the underling asset price then the contract will expire ‘in the money’. On the other hand, if the trader has been unsuccessful with the anticipated direction then the contract will expire ‘out of the money’.

When Binary Option Trading contracts are traded before expiration then a contract ‘in the money’ will be more expensive than a contract ‘out of the money’. When the expiry price is equal to the strike price, the contract will expire in the money. Normally there will be a fixed cash settlement to returned which is often the initial investment, however this is dependent on what was predetermined and agreed in the contract.

Online Binary Options trading is becoming more and more popular with many providers in the process of launching their binary options trading sites and new players entering the marketplace on a monthly basis.

To help you choose a quality online binary options trading, Binary Option Trade .com has put together a list so that site you can be sure that your trading experience will be a profitable one.

Binary Options Trading Online

If you are looking to trade binary options online we recommend the following sites:

One Hour Option .com – Highest return on the market when you’re in the money (75%)
Any Option .com – Highest return on the market when you’re out of the money (15%)

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