Sunday, March 8, 2015

Basics of Binary Trading Options

We are all familiar with a term called “Trading” - In trading, a trader studies market and but an asset at certain price with a hope that it will rise in future. He will sell the asset when the price gets higher and makes the profit from that asset.

Trading through binary options is little different than above method. Here trader or buyer do study the market and decide where to move further, but the outcome of profit is somewhat different than above method. 
Below is the difference which will explain you very clearly:

Traditional Trading – There are many types of results will come depends upon investments and various other methods or techniques.
Binary Options Trading System – There are only 3 possible results will come in binary options trading system. All three outcomes are known by buyer or trader while using binary trading system. It means all the potential risks can be taken into account while doing trading.
Traditional trading – In traditional trading system, profit completely depends upon price of asset. If it falls then you are in loss and if it rises then you are in profit. It’s completely straight forward.
Binary Options Trading System – In Binary options trading system, direction of the move matters not totally depends on price or current value of asset. For example – if trader buys 2000$ call options with return 80% then he knows the outcome will be $ 3600, if it expires in the money and will get 15% payback if it expires out of the money.
Traditional trading - The asset is owned by trader.
Binary Options Trading System – Here Trader is just trading the performance of output.
Traditional trading - In Traditional Trading, Trader must have good knowledge of trading and the awareness about asset.
Binary Option Trading System – A buyer need only have an idea about direction of asset. He is just trading the performance of an asset.
Traditional trading - In Traditional Trading, purchased asset can be sold anytime by trader whatever it suits to him or her.
Binary Option Trading System – When trader buy contract, he/she has to decide expiry times – end of the hour, week or month. Once his expiry time has been selected and the option is purchased, this cannot be altered or changed.
online stock trading

Now you come to know basics of Binary Options Trading. It’s a unique and creative way of trading. 
Binary options trading system