Welcome to Binary Options Trading
Trading in the currency (FOREX), Stock, Commodities Markets, with Binary Options involves risks. You should only trade with monies that you can afford to lose. You should never use funds from your retirement accounts, children’s school accounts, personal savings accounts, or credit card accounts that you can’t afford to pay.
The trends in the stock markets are very volatile and constantly fluctuating. If you are interested in Binary Options Trading in this economic jungle, you might find yourself surprised and confused with the differing trends and patterns in the market. It may be very difficult to find good stocks that you can trade with much ease.
Getting to know the right stocks and markets for Binary Options Trading is very critical and in doing so, it is very important that you understand how the company you are giving your investment to, makes a substantial amount of its money. Unless you have a good understanding of a company’s market, its products, as well as its competitive strengths and weaknesses, it would be pretty difficult for you to foresee whether or not your investment is profitable. When you trade in the currency markets you are not trading in actual stock certificates. You are trading in the value of one currency against that of another.
This report on Binary Options Trading is intended as informational and educational material for you to study. You should always do your own research and make your own decisions. DO NOT let anyone force you into making a decision that you don’t want to make. Remember, “NO” is a complete sentence.
With that said, I’ll leave you with one thought…
How do you make a small fortune in the Markets? You start with a large one!
Join Us and Good Trading,
The Rookie DayTrader
Binary Options have now Evolved with the Introduction of Barrier Options
Forex trading, is evolving quite rapidly in the Binary Options Arena. Barrier options trade hourly and have a 300% return rate when the trading period expires “In the money”.
300% Barrier Options are offered on Gold futures and will trade on a variety of stocks, commodities and currencies in the near future at Start Options. When the market starts to become active and the Trader sees that Gold futures are trending with support a trade of a Call Barrier Option can be made at anytime during the trading period at the current price. When a Barrier Price above the Strike Price is set and if the Gold futures expires at the end of the trading period above the Barrier Price, the return is 300%. Put Barrier Options allow traders to trade barriers below the current price.
The 300% return rate is significantly higher than standard binary options.
Check out Barrier Options. They add flexibility to the On-the-Go investor’s portfolio.
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To get the most out of your Options Trading investing you need to get the fundamentals right. You are doomed to failure if you go in and start making trades without having some study and research behind you when the time comes to put your money on the table.
Just as a word of caution never invest money that you cannot afford to lose. Hopefully you will not suffer losses buy you must be aware that it is highly probable if you do not do the ground work before going live with Options Trading. This applies to all forms of investing.
I advise getting a practice account as a matter of priority. My trading platform of preference to trade options online is Think or Swim. I have been using it for some time and love what it offers. As soon as you open your account it is time to start with your first step. That is to gain knowledge of the simple definitions of Options Trading. Don’t skip this step. Here is some options info to help you on your way.
With options trading you have Call Options and Put Options. Pretty clear-cut isn’t it? Well it is not that simple but don’t worry it is not so complicated that you need to be a Rhodes Scholar to excel at this type of trading.
To simplify things a call option can be thought of as taking a bet that a stock will increase in value within a specified period. It is likely to offer the buyer extra leverage than if they were to buy the real underlying stock.
On the flip side a put option is a way to bet that a stock will go down in price within a specified period. It mostly offers the buyer increased leverage over just shorting shares in that stock.
Are you now starting to understand exactly what Stock Options are? It is alright if you don’t yet understand. Read on for a bit more detail.
I will now breakdown a Call Option (Owner/Buyer)
Here you take part in a contract that gives the buyer the right to call (purchase) 100 shares of an underlying stock listed in the contract, at a stipulated value. This is to occur sometime earlier than the option contract expires, this is in return for paying a premium to the seller of that call.
There are two parts to the contract. There is also the Call (Writer/Seller). The seller of a call option is contracted to sell 100 shares of an underlying stock listed in the contract, once again at a stipulated value at some stage before the option contract is due to expire. The seller receives the premium from the buyer (cost of options).
Remember with a Call Option you make money if a share is increasing in value, while the Put becomes more valuable as the stock price falls.
Now for the Put Option (Owner/Buyer)
The purchaser of a put has the right to put (sell) stock to the writer of that put, at a specified price at some stage before the option contact expires. The buyer must pay a premium to the seller of the put for having that right.
Put Options (Writer/Seller)
The seller of the put is waiting in the wings to buy a stock at a specified price at some stage before the option contract expires and for that receives a premium from the buyer.
Now there you have it. That is the essential anatomy of Stock Options. If you don’t see it clearly now just re-read the material as you really need to get this before moving on to better things such as to trade options online and earn yourself a nice additional income.
Learn how to trade Stock Options from the ground up. Learn how you can make money in any market. With the right trade you can even make money in a stock market crash. To learn more join the newsletter at StockOptionsSecrets.com. Go there now and you could be on your way to learning how to trade options online.