The pairing strategy, also known as straddle, allows you to place both the options discussed above on a trade. Let us suppose that you have chosen a "call option" on an asset that is expected to expire in an hour. After 30 minutes, the price of the asset goes up quickly. At this point, the price is likely to decrease quickly so you might choose to place a "put option" and the amount should be the same. The "put option" should be based on the asset price at the time of placing the option, not at the beginning price. This will expire one of the options "in the money". This will maximize your profits and minimize your losses.
Two binary options brokers are recommended to avoid situation like a site going down when a signal is given by highly profitable low trade systems and you want to trade. These trading systems give very less signals with high profitability and you don't want to miss the opportunity due to brokers site failure or something like that. So its advisable to have two binary options brokers account. Also it provides the opportunity to split your fund between two brokers. Expert traders like me have 3/4 brokers account simultaneously but for an average trader 2 are surely recommended.
You will find two types available - the cash-or-nothing option and the asset-or-nothing option. With the former, you get paid a set amount if it expires in the money. In contrast, the latter pays the value of the underlying assets.
Before choosing an asset that will be the most suitable for you there is also a very important thing to put in mind, to choose the exact time for every asset, in case to gain your advantage in trading. You just have to use binary option's benefit- simplicity, as your weapon, for this you just need to be systematic.
The returns from binary option trades are set from the onset of the contract. If an option expires in-the-money then a buyer will receive http://www.optionbinary.net/ between 65-71% profit on the investment amount. If an option expires out-of-the-money then with anyoption, the buyer will receive a 15% payback on http://www.investopedia.com/terms/b/binary-option.asp his initial investment. The certainty of binary option trading makes it a preferred method of trading for many investors since not only is the potential gain known from the offset, but more importantly the potential loss is fixed and they will not be called upon for cover an investment which ended out-of-the-money.
The main reason why binary options are so successful nowadays it's the fact that it is the simplest way of trading, and people like simple things. You don't have to be an expert trader in order to understand how digital options work. The only thing you need to know to be successful in trading binary options is the direction where the market will move. No more problems with placing the orders, calculating risks and rewards, margin calls, stop losses and other complicated parameters.
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One of the riskiest trading options around yet is binary options trading. The payout for this kind of option is either a fixed price or asset, or none at all. It's very risky especially for a newbie to try this type of trading. In http://www.4shared.com/office/LflE-a9dce/Why_Traderush_Sixty_Second_Bin.html some cases, investors give back a small percentage of the investment, at times around 5 to 10 percent of the strike price. However, the most basic cases and situations do not call for a refund or return of investment.
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