Binary Options Trading

Binary Options Trading Binary options are a simple financial product which allows investors to choose whether an asset will go up or down over a prescribed period. Trading stock binary options takes some understanding of how stocks behave in order to profit from it. Factors Taken Into Account When Trading Stocks Market Sentiment With the gloomy market sentiment and worry about the global economy, most investors prefer to hold cash and sell their stock holdings. A good or a bad earnings report will cause a stock price to rise or fall respectively. Earnings Reports These reports are seasonal and used during the quarterly earnings season. Mergers & Acquisitions A merger or an acquisition is meant to improve the standing and competitiveness of the companies in question with positive impact for the companies involved. These policies could have a positive or negative effect on stock prices depending on the policies and its impact on binary trading option Government Policies Types of Binary Options Range Option It predicts the probability of whether the asset and option value chosen by the investor will be in the predetermined range by the time of expiration. Above/Below (High/Low) Option In this type of binary trading the investor tries to predict whether the chosen asset will be above or below the predetermined strike price by the time of expiration. Touch Option In this type a boundary line is determined above and below the current rate. Especially binary option trading beginners can easily learn how to make a profit through this option. Advantages of Binary Options Trading Easy Actions Controlled risk Profitability 4. Simplicity 5. Personal 6. Flexibility It allows users of all skill 1 levels to take part and it also offers users massive Ensures investors to gauge his risks and plan 2 his investment before investing any money profit potential An investor is likely to make large profits simply from binary options trades by a single tick change Requires less detailed knowledge of an asset to profit from its price change 3 Allows international Allows traders to trade financial instruments binary option trading, from the comfort of an investor's home and at the press of a fingertip spread across the currency, commodity markets, indices and bonds Sources BJGOPTION http://en.wikipedia.org| http://investor.gov/ Btgoption.com