Binary Forex Option Trading is A Simple Way to Trade CurrencyBinary forex option trading is a type of trading forex options in which the payoff is fixed if the option expires in the money or nothing at all if the option expires out of the money. For example, suppose that the exchange rate for EUR/USD is currently 1.30; a forex trader purchases binary forex option trading at a strike rate of 1.35, which means that he/she is betting that the exchange rate will be 1.35 or greater on the expiration date. And if it really does, the forex trader will receive a set payoff, no matter how far above 1.35 the exchange rate settles. However, if the exchange rate at expiration is less than 1.35, the trader will receive nothing. Of course, you can also bet that the exchange rates of a currency pair will decline.
Therefore, in binary forex option trading, forex traders only need to predict the price direction of the currency pair, really simpler than spot trading, while in spot trading, traders have to know the exact price that the currency pair will take in order to gain from the investment. Usually binary forex options are used to hedge or speculate on the direction a specific exchange rate will move. But not all currency exchange rates can be traded in binary forex options. The majority of positions are for the EUR/USD, GBP/USD and USD/YEN based on their very liquid forex markets.
Why is binary forex option trading is appealing
Binary forex option trading is easy to understand, offers high returns over a short period and requires only small amounts of capital with limited risk. As a result, binary options trading is growing in popularity and is an opportunity any trader should look at.
Binary options are so called because they have two possible outcomes. You are predicting that the price of something will either be higher or lower than its current level by a set time. It doesn’t matter by how much it changes as long as it goes in the right direction. If you’re correct, you win. If you’re wrong, you lose. That’s all there is to it.
Why is binary option trading popular?
Open to Everyone. Since the Securities and Exchange Commission approved the trading of binary options in the US in 2008, everything has become much simpler. Now you can trade binary option yourself.
Wide Range of Assets. In essence, you can trade anything that has a variable price. This means you can trade individual stocks, market indices, foreign exchange and commodities. So you have plenty of choice and can trade something you know.
High and Fast Returns. Binary forex option typically expire in a matter of hours and pay 65-81% profit on the amount you invest if you predict correctly. That means you don’t have to wait long for the outcome and can make a lot of money through a series of successful trades over a short period.
Low Investment. Since you’re not actually buying the assets, you don’t need to invest large amounts to make high profits.
Limited Risk. Each trade is for a set amount that you specify. If your prediction is wrong, this is the maximum amount you can lose and so you can restrict this amount to one that you can afford.
Therefore, in binary forex option trading, forex traders only need to predict the price direction of the currency pair, really simpler than spot trading, while in spot trading, traders have to know the exact price that the currency pair will take in order to gain from the investment. Usually binary forex options are used to hedge or speculate on the direction a specific exchange rate will move. But not all currency exchange rates can be traded in binary forex options. The majority of positions are for the EUR/USD, GBP/USD and USD/YEN based on their very liquid forex markets.
Why is binary forex option trading is appealing
Binary forex option trading is easy to understand, offers high returns over a short period and requires only small amounts of capital with limited risk. As a result, binary options trading is growing in popularity and is an opportunity any trader should look at.
Binary options are so called because they have two possible outcomes. You are predicting that the price of something will either be higher or lower than its current level by a set time. It doesn’t matter by how much it changes as long as it goes in the right direction. If you’re correct, you win. If you’re wrong, you lose. That’s all there is to it.
Why is binary option trading popular?
Open to Everyone. Since the Securities and Exchange Commission approved the trading of binary options in the US in 2008, everything has become much simpler. Now you can trade binary option yourself.
Wide Range of Assets. In essence, you can trade anything that has a variable price. This means you can trade individual stocks, market indices, foreign exchange and commodities. So you have plenty of choice and can trade something you know.
High and Fast Returns. Binary forex option typically expire in a matter of hours and pay 65-81% profit on the amount you invest if you predict correctly. That means you don’t have to wait long for the outcome and can make a lot of money through a series of successful trades over a short period.
Low Investment. Since you’re not actually buying the assets, you don’t need to invest large amounts to make high profits.
Limited Risk. Each trade is for a set amount that you specify. If your prediction is wrong, this is the maximum amount you can lose and so you can restrict this amount to one that you can afford.
No comments:
Post a Comment