Options FX
be a basic account with a low deposit requirement right up to a top of the range account
that
requires a much higher deposit but provides a more personal and comprehensive service. Check the accounts that are available and make sure there’s one that meets your needs now and in the future.
M o s t impo r ta n t l y look at a number of b r o k e rs, compare what they offer,then choose the one that’s best for you.
T R A DIN G STRATEGIES YOU CAN USE
Trading binary options
a separate is a
simple process and each trade is
Various strategies can be adopted such as a straddle, a reversal, or a knock-on effect.
contract, however by combining options and looking at several assets together you can increase your success rate. There are various strategies you can adopt in different situations. A reversal may apply when a price chart indicates a trend is about to reverse. In this case, you will forecast a price change that is the opposite of the direction it’s been moving previously.
the change in the price of one asset affects the price of another. This may occur, for example, when a rising commodity price causes a company’s profits to fall and its share price also. Purchasing a call option on the former and a put option on the latter will leave you in the money on both.
Other strategies are possible and will, if correctly used, increase your profits or minimize your losses.
A straddle involves purchasing both a put and a call option on the same asset at a different price level. You will finish in the money on both if the price is in between the levels at expiry. Otherwise, you should have at least one success and so will minimize your losses.
A knock-on effect occurs when
WHY BINARY OPTIONS TRADING IS GROWING IN POPULARITY
The increasing popularity of binary options trading is due to a number of factors. One of the main ones is that binary options traders can be successful in any market conditions. You don’t need a rising market to make money from binary options trading. Since you’re forecasting the way prices will move, it doesn’t matter if a bull or a bear market is underway as
long correct.
your forecast is
as In
fact market volatility often increases the opportunities to make money.
Trading foreign exchange means
you can finish in the money by forecasting either a fall or a rise in the value of one currency against another. With the constant changes to rates and the number of available combinations,
this gives almost
limitless opportunities to achieve a significant return.
All markets follow trends and you can make money on an up trend by buying call options as well as buying
FX TRADER MAGAZINE October - December 2011 61
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