Binary Option Broker Reviews - Binary Options Trading Strategies » Option Trading

Binary Options Trade | Combining a Put with a Long Stock Purchase

Binary Options Trading — Fri, 12 Feb 2010 00:22:31 +0000

The utility of binary options is evident in the attached video in this post. What we try to show in the video is the combination of going long a stock and buying a small binary put option at the same time. We demonstrate the payoff chart in a way which should make evident why average traders ought to have this tool in their arsenal. What Are the Principal Tactics of This Binary Options Demonstration The Trader Is Trying to Follow the Old Addage: “Buy on the dips” – but where is the bottom? The principal foundation of this trade is the acquisition of shares of a highly liquid common stock In this case we presume the trader is trying to time the market to find the market bottom In this case the trader pulls the trigger on a limit or market order for a desired security The trader then purchases a small a binary options put contract on the same security at the same price Why Doesn’t the Trader Simply Buy at the Bottom? Well that’s the million dollar question, isn’t it? The problem is that in a real time market environment nobody really knows where the lowest price on [...]

Binary Options Trade | Combining a Put with a Long Stock Purchase is a post from: Binary Option Broker Reviews - Binary Options Trading Strategies

Currency Options Trading | How Binary Options Can Get You Started

Binary Options Trading — Sat, 23 Jan 2010 23:40:36 +0000

Sponsored LinkCurrency options trading is just as risky as any other form of options trading however the entry costs associated with getting started with options trading many times is more capital than the average beginner is willing to commit to something new. There is a way, however, for beginning options trading that requires only $100 to start and offers much of the same opportunity without a great deal of the complexity. Enter: The Binary Option Using binary options to begin your exploration into currency options trading is a really cheap way to investigate the currency options trading market and test your mettle in real time without committing (and risking) a fortune up front. If you think you have what it takes to beat the market currency options trading but you can’t afford to lose $10000 or $100000 finding out whether or not you’re any good – why not commit $100 or $1000 instead with a binary options broker? We cover “What Is a Binary Option” elsewhere on the site, but suffice to say a binary option trades without spread and without commission – completely eliminating those two costs (cost which effectively squeeze out the low capital / beginner traders). Further, [...]

Currency Options Trading | How Binary Options Can Get You Started is a post from: Binary Option Broker Reviews - Binary Options Trading Strategies

Online Stock Option Trading | The Safe Place to Take Big Chances

Binary Options Trading — Fri, 22 Jan 2010 10:36:46 +0000

Online stock option trading, to me, is the first and last step on the investing ladder a retail investor should endeavor to climb. Stock trading (despite the hype) is far too inefficient for the average small cap retail investor. On the other hand forex trading, with its ginormous leverage ratios, may have all the promises of riches one might just as well get from a genie in a lamp but with it comes the ginormous risk associated with margin calls and losing far more than you invested. What Makes Online Stock Option Trading Different? In a word, control. More accurately, risk control. The advantage the options trader has over the forex trader or margin stock investor is the ability to make either a “long” (call) or “short” (put) play on the market by taking a LONG position – i.e. BUYING (a.k.a. CONTROLLING) a call or put contract. Doing so puts an inherent limit on the maximum size of the loss on the investment (100%). Where else can you get the potential gains associated with the implied leverage of an options contract without there being the implied risk of being “short” somewhere else. Confused? Maybe an example will help. Consider a [...]

Online Stock Option Trading | The Safe Place to Take Big Chances is a post from: Binary Option Broker Reviews - Binary Options Trading Strategies