Archive for May, 2010

How to Pick an Expiration Time (Hour, Day, Month)

Binary options, unlike most futures trading, removes the variability of when to exit a position. Contract lengths are strictly determined at purchased, and there is no option to exercise at any time. In that sense, many people look at binary options as having only one decision to be made: whether an asset price will increase or decrease over the life of the contract. In reality, however, the expiration time of the contract can be a decisive factor in whether a contract expires in-the-money or out-of-the-money. › Continue reading

What is Fundamental Analysis and How Can Binary Option Traders Use It?

Fundamental analysis is the process of looking at various factors in the market to determine how an asset is mispriced, to determine what direction it will likely move. It is contrasted with technical analysis, which acts from the assumption that there is no inherent value to an asset that it is moving towards, but rather than investors act according to relatively-fixed patterns, so that the movements of assets can be predicted by charts and formulas. Fundamental analysis is very useful for binary option traders, because fundamental factors generally influence assets in the short term – ideal for contracts which often last less than one hour. › Continue reading

What is Technical Analysis and How Can Binary Option Traders Use It?

Technical analysis is the investigation of trends and patterns that exist in the lifecycle of assets, based on the tendencies of investors and the markets, and is used commonly when trading binary options. Technical analysts focus on charts, using them to deduce when assets will likely level out, reverse their direction, or surge in one direction or another, very useful information for binary option traders. Technical analysis is contrasted with fundamental analysis, which comes from the position that assets have an intrinsic value at any given moment, and that the market is constantly correcting towards that value. › Continue reading

How to pick your assets when trading Binary Options

There are two major schools of thought when it comes to choosing binary option assets to invest in. The first holds that binary option investors should focus on assets with which they are familiar – this allows them to bring a greater degree of expertise to their decisions, and increases the chances that they will make correct decisions when determining asset directionality. › Continue reading

How to choose a Binary Options Broker

As binary options have increased in popularity, more and more binary option brokers have appeared on the market, and it can be difficult to know which one to choose. A binary option broker is different from the binary option trading platform – with many brokers using the same underlying platform. The broker is the person responsible for operating the platform, managing your questions and concerns, and getting you your money. Unlike most traditional brokers, binary option brokers do not charge a commission or flat fee on your trades – every trade is free. › Continue reading

Managing Risk when trading Binary Options

Binary options are very attractive to many investors because of their transparency when it comes to risk. Unlike many forms of lucrative trading, such as Forex investment, in binary option trading there is no possibility of losing more money than was initially invested. Because there is no leveraging, the high rate of return possible with binary option trading comes without the threat of being devastated financially if the market should swing radically in the wrong direction. › Continue reading

Who trades Binary Options ?

Binary options are an excellent choice for all sorts of traders – from people new to the world of investment, to established day traders, to Forex traders looking for a faster return rate. Because they remove so many of the variables associated with other sorts of trading, binary options are ideal for those looking to start in investment, but they also offer excellent opportunities for seasoned traders to more accurately predict their likely rate of return. › Continue reading

What is Binary Option Trading ?

Binary option trading is a relatively new form of investing, in which many of the complex variables associated with trading are removed, allowing for a much simpler assessment of an asset. In binary option trading an investor looks at an underlying asset, and makes a judgment as to whether it will increase or decrease in value by a fixed time. › Continue reading

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