A huge help to define its own binary options strategy is the so-called trend chart represents. This strategy rests on the so-called probability and – like its name suggests it – offers simply to a clearly identifiable trend line. The trader who trusts this trend chart to determine its own trading strategy opt for the so-called trend strategy.

This is based on the expectation that the trend that the share price of the respective underlying follows will remain so. Particularly suitable is this binary options strategy for those traders who have very few or no knowledge of the market.For a look at the trend line is suggests the direction and the price of the underlying asset.

The trading strategy

An interesting variant is the so-called trading strategy. The newcomers to binary options helps them to secure its capital input highly. The experienced trader in turn allowed them to increase profits. In addition, this is what the concept of this trading strategy: An open option is hedged with another option for the same underlying instrument, by the same time a call option and a put option for the underlying acquired.

An open call option is a put option and an open put option is hedged with a call option.The key to success with the related hedging trading strategy is that the one option guaranteed to make a profit, thereby minimizing the loss.Crucial here is that the two options are not only sold for the same underlying. The second option is that it must be purchased at the same high level of commitment, as and to traded for the same exercise. Thus, the trader buys a call option for 500 €, he must buy a put option for 500 €.

It must expire simultaneously with the call option. It brings an option to a gain of 50% and the other is a guaranteed reimbursement of 15%, the trader has made a profit of 35%.

If you want to know more about spread betting companies , then have a look at the best online option such as www.forexsq.com/.
Trackback

no comment untill now

Sorry, comments closed.