Binary Options Strategies for Affiliates
In recent years, binary options trading have been quite popular among traders. Its potential of yielding high profits in quicker succession has been attracting investors around the globe. One must employ calculative strategy while trading. Conducting a technical and fundamental analysis is key to predicting market movement, sometimes there are unexpected events that you must respond to quickly in order to minimize your risk and make a profit on your investment.
Let’s discuss the strategies with one typical example, suppose a trader has done his or her research and knows that unexpected event in economic field will occur around 2 PM on Thursday afternoon. The trader knows that market will be affected but he has no idea in which direction market will move.
In order to cover both possibilities, the trader invests $4,000 on a Call option and $4,000 on a Put option at the same time. During this hour, the unemployment statistics are announced and unemployment has gone down 3% sending the price of retail options up.
Now as the trader has seen the direction, Call option is going to be in-the-money and his Put option is going to be out-of-the-money. Now if he wants to minimize risk, he can use Close now feature and are able to recover $1000 of the initial $5000 he invested in the “Put” Option. Since the Call option is in-the-money, the trader will get a return of $10000. Hence he will earn profits with this strategy.
In order to learn such strategy, one must have appropriate guidance and broker. 24 Option offers a good choice of binary options and an understanding of the assets which offer the base for trading binaries. Binary options, also known as all-or-nothing options, are contracts which have only two possible outcomes, win or lose.
Binary options trading expiration timeframe ranges between hours, daily, weekly and monthly. Hence trader must choose the appropriate timeframe that can bring him profits. Investors will be able to quickly turnaround their capital and hence maximizing their capital.
One of the reasons of the popularity of binary options is that regardless of whether option expires out or in the money, the trader is aware of the extent of his exposure in traded asset. If the options expire in money, he will earn profit between 50% to 80% of his investment capital. If option expires out of money, he will lose his 85% of capital.
About the Author:
About the Author:
Joe Zachary is the senior financial reporter for 24option. Working for the past three years in the binary options and forex industries, he specializes in writing about new trends and opportunities within the financial industry. To learn about 24option’s Risk-Free trading promotion, please email email@example.com.