f_to_t t_to_f
1
USD
=
0.89
EUR

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Introduction

moneyBinary options, having emerged as an accessible potential tool for Forex traders, has brought hope and cheer to the market as a whole. Although some people like to relate binary options in the realm of the exotic options (options with more complex features), in fact, they are a simple way of offering a compelling method for investors and traders to cut their risk in a situation where the payoff works out to a fixed quantum on an asset or nothing at all. Today, many dealers consider the binary option as a unique way of short time profiteering on a range of economic assets that include the Forex. Trading popular currency pairs of binary options sites have seen people run up profits of even 80 % in a period of less than an hour by conveniently trading options that really represent leveraged security. Bear in mind that these options can inflate your profits and losses as well.

 

Clear Fixed Payoff

moneyIn the current scenario, most experts prefer to equate the binary options to plain vanilla options like the “call” or “put” options that you characterize with mechanisms like strike price, expiration date and premium for opting for the position. However, unlike the regular options the traders opting for binary options have a clear fixed payoff. Here you are gambling on the possibility of hitting the strike price within an expiration time. Accordingly, on a fixed payoff of $100, you will get nothing if the price fails to hit the strike price by the time of expiration and if the price hits the target, you will get the full $100.

 

Substitute for Stop Orders

moneyYou can now access binary Forex options on the Nadex or the North American Derivatives Exchange that offers you options for currency pairs of JPY/USD, USD/EUR, CAD/USD, CHF/USD, and USD/GBP on a Weekly, Daily and Intraday expiration basis. Many innovative Forex players today use the binary options as a great substitute against stop orders to endure a period of market reversal, expecting it as a revive after a temporary setback. Timing the entry and exit of binary options is critical as a momentum signal as it offers a low-cost platform for facilitating Forex traders to select directions and opt for positions.

 

The practicality

Practically, consider a Forex situation where, after opening the trading platform with your broker, you have chosen a currency pair, FF/USD. You now decide buy a “call” option because you think that the prices will go up (however, you would consider a “put” option if you predict a value drop in the currency pair). From here, the clock starts with an expiration time of 30 minutes. If, at the end of the period, the price exceeds your purchase price (“in the money”), you will gain about 80%, but if it does not reach your strike price (“out of the money”), you will stand to lose almost 85% of the amount you invested. You learn how important good research sources are, if you want to avoid making a wrong prediction and losing your 85% investment. You will be sorry if you use the binary options like a gambling tool in a game of poker. For beginners, selecting currency pairs of low volatility and high liquidity may work out as the best option because you do not risk abrupt market fluctuations in prices, either up or down. Accordingly, the currency pair that may best suit novices is EUR-US

 

 

Data 2013
Jan - July
 
Euro

+2,045

 
Dollar
 

+1,207

 

<
Gantry

+2,045

 

Themes 

+1,207

 

 

 

 
 
Euro -378 Dollar +1,036 Sterling +612 Bitcoin -1,078

Advantages of using binary options

• You can open an account with the brokers for an amount of $100 or even less

• Binary options are simple to figure out and operate

• You need not worry about pips. Worry only whether your currency pair closes above or below your strike price in 30 minutes (this you can never achieve in normal Forex trading).



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