BINARY OPTION TRADING
STRATEGY
OPTIONS BROKER
ABOUT OPTIONS
STRATEGY
OPTIONS BROKER
ABOUT OPTIONS
BINARY OPTION TRADING
Binary option trading enables both beginner and experienced investors to make substantial returns from stock market trading. This form of investing grows in popularity by the day, as people from all around the world enjoy the benefits binary option trading has to offer.
The basic idea behind binary options trading is quiet simple, a prediction is made on whether the price of an underlying asset (e.g., stock, commodity, index, currency) will finish above or below a "Strike Price" (The price that an underlying assets holds at the time one commences trading), when the trade expires.
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| Call/Put Option |
As the name Binary suggests there are only two possible outcomes, a prediction is correct or incorrect. When trading you choose to place either a "Call Option" or "Put Option” - A Call option predicts that an underlying asset will expire above the strike price, and a Put option predicts that it will expire below.
With Binary options, the return rate on an investment is fixed. Should a trade expire one dollar or two hundred dollars above or below the Strike Price (depending on the direction selected) the payoff will be the same, it is not proportional to the price at which the option expires.
Types of options Traded
An option can be based on any type of asset that is traded in the market, including stock options (such as Facebook and Google), currency pairs (ex: Euro vs. Dollar), indices (such as the NASDAQ index) and commodities (such as gold and oil). anyoption offers over 100 underlying assets to trade, including industry-leading derivatives traded in the United States, Europe, Asia and the Middle East markets.
Learn how to maximize your earning potential
There are numerous options trading strategies and methods to pinpoint the price rate of virtually any assets within a certain time frame. Using different strategies help to maximize profits, while reducing risk. If you are new to options trading, try our demo account or be advised by our articles, written by a team of professional analysts and trading experts here at anyoption, which will provide you with comprehensive training on trading and the use of strategies.
Improve your trading skills with anyoption
Calculated investments can account for very high profit within 30 minutes; however, experienced traders can even increase the security of an investment. This is why you can now enjoy a unique trading environment with anyoption live - view real time trading data to learn from experienced traders and follow the market trend. Our team of professional analysts and trader are always available to provide guidance and support, so it does not matter if previous experience exists or not.
Binary Option Trading and Broker
Definitions
Definition of 'Binary Option'
A type of option in which the payoff is structured to be
either a fixed amount of compensation if the option expires in the money, or
nothing at all if the option expires out of the money.
These types of options are different from plain vanilla options.
Also sometimes referred to as "all-or-nothing options" or "digital options".
These types of options are different from plain vanilla options.
Also sometimes referred to as "all-or-nothing options" or "digital options".
Investopedia explains 'Binary Option'
For example, suppose you were interested in buying binary call options
for common shares of ABC company with a strike price of $50 per share and a
specified binary payoff of $500. If the stock is trading above $50 when the
expiration date is reached, you would receive the $500 payoff for your option
contract. However, if the stock is trading below $50 per share at the
expiration date, you receive nothing.
Definition of 'Broker'
1. An individual or firm that charges a fee or commission for
executing buy and sell orders submitted by an investor.
2. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
3. A licensed real estate professional who typically represents the seller of a property. A broker's duties may include: determining market values, advertising properties for sale, showing properties to prospective buyers, and advising clients with regard to offers and related matters.
2. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
3. A licensed real estate professional who typically represents the seller of a property. A broker's duties may include: determining market values, advertising properties for sale, showing properties to prospective buyers, and advising clients with regard to offers and related matters.
Investopedia explains 'Broker'
Traditionally, only the wealthy
could afford a broker and access the stock market. The internet triggered an
explosion of discount brokers, which allow investors to trade at a lower cost,
but don't provide personalized advice. Because of discount brokers, almost
anybody can afford to invest in the market.
ABOUT OPTIONS
What
are BINARY OPTIONS?
anyoption™’s binary options are an exciting new type of investment. Rather than
purchasing the asset itself, investors can speculate on which direction they
estimate an asset will move in. When a binary option is purchased on our
platform, a contract is created which gives the buyer (known here as the
investor) the right to buy an underlying asset at a fixed price, within a
specified time frame with us, the seller.
Binaries are also known as all-or-nothing options, digital options, or Fixed Return Options (FROs), each name stressing the 0-1 nature of the options. This is because there are two possible outcomes to a binary option, both of which are understood by the investor prior to purchasing the option.
A binary option trade on the anyoption™ platform may look something like this:
An investor purchases a Microsoft binary option for $100, with the opinion that at the end of the day Microsoft’s shares will be higher than they currently stand. If he is correct then we offer a 71% return on his investment.
Binary option outcome:
1 - If at the end of the day, Microsoft is indeed higher than at the time the option was purchased, then we will pay the investor a $171 payout
2 - Should the shares be lower, then we will refund the investor $15
This means that when the contract is purchased, the investor knows that he will receive either $171 or $15. These values will obviously be much greater, the larger the investment. An anyoption™ investment of $1,000 with a 71% payout will result in a $1,710 payout or a $150 refund.
What is unique about trading binary options?
There are three major differences between binary options and regular (known as vanilla) options:
(1) Expiry time, (2) Payout, and (3) Execution
Binaries are also known as all-or-nothing options, digital options, or Fixed Return Options (FROs), each name stressing the 0-1 nature of the options. This is because there are two possible outcomes to a binary option, both of which are understood by the investor prior to purchasing the option.
A binary option trade on the anyoption™ platform may look something like this:
An investor purchases a Microsoft binary option for $100, with the opinion that at the end of the day Microsoft’s shares will be higher than they currently stand. If he is correct then we offer a 71% return on his investment.
Binary option outcome:
1 - If at the end of the day, Microsoft is indeed higher than at the time the option was purchased, then we will pay the investor a $171 payout
2 - Should the shares be lower, then we will refund the investor $15
This means that when the contract is purchased, the investor knows that he will receive either $171 or $15. These values will obviously be much greater, the larger the investment. An anyoption™ investment of $1,000 with a 71% payout will result in a $1,710 payout or a $150 refund.
What is unique about trading binary options?
There are three major differences between binary options and regular (known as vanilla) options:
(1) Expiry time, (2) Payout, and (3) Execution
Expiry time
Vanila: Monthly or quarterly expiries.
Binary: Expires at end of the
hour, day, week or month.
Payout
Vanilla: Depends on the magnitude of the asset
price change.
Binary: Fixed on purchase of
option : 65-71% if in-the-money or 15% if out-of-the-money
Execution
Vanilla: Can be executed at any time up to the
expiry time.
Binary: Cannot be exercised
before the expiry time.
These differences have several consequences:
1 The short term multiple expiry times means investors can make an instant profit on their binary options and are more flexible in their option investments
2 In vanilla options, an investor pays per contract (i.e. point). Subsequently the investor will profit or lose an amount depending on the number of points difference between the expiry level and the strike price. Unlike in binary options where the two outcomes are set from the start
3 An investor in a binary option must hold onto his option until the expiry date. He must therefore take more care when purchasing his options as he cannot sell them once they are purchased
Trading binary options on our anyoption™ platform is a novel and interesting method of investing in the financial markets. They are more straightforward and flexible than traditional options but as with all investments, planning ahead is an important part of succeeding.
Trade binary options with anyoption™ - this is about
speculating in which direction an asset is likely to move. No shares need to be
bought, no currencies traded. It is a simple and efficient way of investing in
the financial markets with a small budget and limited trading skills, whilst
also benefiting the more experienced trader too.
Trading on our platform is a matter of speculating higher or lower i.e. will the price of the underlying asset at a set time in the future be higher or lower than its current price, known as the strike price.
To trade binary options with us, an investor must select the underlying asset, the expiry time and the direction in which he speculates the asset will move. The underlying asset is what the option derives its value from and it could be an index (e.g. Nasdaq), commodity (e.g. Oil), currency pair which is also known as forex (e.g. EUR/USD) or stock e.g. (Apple), of which we have over 60 on offer. The expiry time of the binary option trade dictates when the contract ends and it can be the end of the nearest hour, or the end of the day, week or month. The investor then needs to consider the direction in which he believes the asset will move. If he thinks UP, then he will buy a CALL option. If he believes DOWN then he will buy a PUT option.
An option is considered in-the-money if it expires above the strike price in a Call option or below it in a Put. An option is considered out-of-the-money if it expires below the strike price in a Call option or above it in a Put. When you trade binary options with anyoption™ you will receive payouts of 65-71% for options expiring in-the-money and even a 15% refund for those expiring out-of-the-money.
Above strike price:
Take the below situation as an example of how a binary options trade can work:
Underlying asset – Nasdaq
Strike price – 2,164.460
Expiry time – 15:30
Investment - $1,000
Return – 71%
Expiry level – 2,167.20
Situation 1:
A Call option is purchased. At the expiry time of 15:30 the expiry level 2167.20 is above the strike price and therefore in-the-money. We pay the investor a $1,710 payout.
Situation 2:
A Put option is purchased. At the expiry time of 15:30 the expiry level 2167.20 is above the strike price and therefore out-of-the-money. We pay the investor a refund of $150.
Trading on our platform is a matter of speculating higher or lower i.e. will the price of the underlying asset at a set time in the future be higher or lower than its current price, known as the strike price.
To trade binary options with us, an investor must select the underlying asset, the expiry time and the direction in which he speculates the asset will move. The underlying asset is what the option derives its value from and it could be an index (e.g. Nasdaq), commodity (e.g. Oil), currency pair which is also known as forex (e.g. EUR/USD) or stock e.g. (Apple), of which we have over 60 on offer. The expiry time of the binary option trade dictates when the contract ends and it can be the end of the nearest hour, or the end of the day, week or month. The investor then needs to consider the direction in which he believes the asset will move. If he thinks UP, then he will buy a CALL option. If he believes DOWN then he will buy a PUT option.
An option is considered in-the-money if it expires above the strike price in a Call option or below it in a Put. An option is considered out-of-the-money if it expires below the strike price in a Call option or above it in a Put. When you trade binary options with anyoption™ you will receive payouts of 65-71% for options expiring in-the-money and even a 15% refund for those expiring out-of-the-money.
Above strike price:
CALL: In-the-money
PUT: Out-of-the-money
Below
strike price:
CALL: Out-of-the-money
PUT: In-the-money
Take the below situation as an example of how a binary options trade can work:
Underlying asset – Nasdaq
Strike price – 2,164.460
Expiry time – 15:30
Investment - $1,000
Return – 71%
Expiry level – 2,167.20
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| Binary Option: Chart Graph |
Situation 1:
A Call option is purchased. At the expiry time of 15:30 the expiry level 2167.20 is above the strike price and therefore in-the-money. We pay the investor a $1,710 payout.
Situation 2:
A Put option is purchased. At the expiry time of 15:30 the expiry level 2167.20 is above the strike price and therefore out-of-the-money. We pay the investor a refund of $150.
When an investor trades binary options on the anyoption™ platform he is
guaranteed to always receive a payout. With binary option trades available
every hour, and payouts as much as 70%, there are a multitude of opportunities
for making large profits.
Our anyoption™ platform offers several
advantages over vanilla options which is why investors
are increasing their binary options trading activity. These advantages include:
1 Controlled risk – the binary nature of options ensures the investor knows how much he risks losing from an option. We will never ask him for more money should the option expire out-of-the-money, allowing him to gauge his risks and plan his investment before investing any money with us
2 Accessibility - an investor is buying the contract, not the asset itself, which opens up the profits of binary options trading to a larger audience who would otherwise be constricted by high prices e.g. if a stock in Apple costs $50 a share and you have $1000 to invest, then you could buy 20 shares. If the shares increase to $55 then you will make $100 (20 shares x $5) which is a 10% profit margin. Alternatively, you could invest $1,000 in an anyoption™ binary option with a 71% payback and make $1,710 if the option expires in-the-money. This is a 71% profit margin and a great deal more profitable than buying the shares themselves.
3 Profitability – additional to the accessibility of binary options, since the profit is not linked to the difference in price but rather the change in direction, an investor is more likely to make large profits from binary options trades. A 71% profit can be gained just by a single tick change
4 Simplicity – since our payouts rely on the direction of the asset price change rather than the difference in price, less detailed knowledge of an asset is needed to profit from its price change, making binary options trading easier for the less experienced investor
5 Personal – using the anyoption™ platform allows for international binary option trading whenever the markets are open, from the comfort of an investor’s home and at the press on a fingertip
In addition to this, binary option trading on our anyoption™ platform offers a host of other advantages:
are increasing their binary options trading activity. These advantages include:
1 Controlled risk – the binary nature of options ensures the investor knows how much he risks losing from an option. We will never ask him for more money should the option expire out-of-the-money, allowing him to gauge his risks and plan his investment before investing any money with us
2 Accessibility - an investor is buying the contract, not the asset itself, which opens up the profits of binary options trading to a larger audience who would otherwise be constricted by high prices e.g. if a stock in Apple costs $50 a share and you have $1000 to invest, then you could buy 20 shares. If the shares increase to $55 then you will make $100 (20 shares x $5) which is a 10% profit margin. Alternatively, you could invest $1,000 in an anyoption™ binary option with a 71% payback and make $1,710 if the option expires in-the-money. This is a 71% profit margin and a great deal more profitable than buying the shares themselves.
3 Profitability – additional to the accessibility of binary options, since the profit is not linked to the difference in price but rather the change in direction, an investor is more likely to make large profits from binary options trades. A 71% profit can be gained just by a single tick change
4 Simplicity – since our payouts rely on the direction of the asset price change rather than the difference in price, less detailed knowledge of an asset is needed to profit from its price change, making binary options trading easier for the less experienced investor
5 Personal – using the anyoption™ platform allows for international binary option trading whenever the markets are open, from the comfort of an investor’s home and at the press on a fingertip
In addition to this, binary option trading on our anyoption™ platform offers a host of other advantages:
• Our website is 100% web based and therefore does not require any software
download which is cumbersome and unnecessary
• We do not take commissions on binary options purchased and we offer a high return rate of 65-71% - in addition to the 15% refund given on options which expire out-of-the-money • The website is self explanatory and easy to use • We offer over 60 underlying assets to choose from, made up of indices, currency pairs, stocks and commodities • Our website can be used in English, Spanish, Turkish, Arabic and German • Settlements are executed speedily and accurately • We use the most advanced and stable technologies to assure an investor’s safety and satisfaction in all online option trades • Investors can view the past expiries of all of the site’s assets, helping them make a decision on what option to purchase • Registering for an anyoption™ account is simple and accounts can be held in USD, GBP and EUR • Investors can view all their past, present and future purchases in one consolidated place |
Binary options are a perfect 21st century investment. They are user friendly, internationally available and technologically advanced. They incorporate the simplicity of regular options with above average profits. They are unique and growing in popularity amongst the trading community and anyoption™ is leading the way in the binary option trading market.
BINARY OPTIONS STRATEGIES
TRADING
WITH THE RIGHT STRATEGY
Binary option trading strategies enable investors to maximize
their potential for profit. There are many different strategies that one can
use when trading options, some are straight forward – perfect for beginners,
while others are more complex and better suited to experienced investors.
Trading strategies are born from technical analysis, fundamental
analysis and statistical calculation of market movements; by studying tools
such as financial calendars and stock graphs investors can make informed
trading decisions and implement strategies that help them make gains regardless
of market environments.
Below you will find an overview of some basic strategies that
you can easily implement to help you maximize your profits when using the
anyoption platform.
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| Binary Option: Strategy |
Popular trading strategies used by anyoption traders
Hedging Strategies: Hedging strategies are employed by traders
who want to secure their investments by locking-in profits. Hedging is seen as
a conservative form of trading and although it reduces risk it also reduces the
potential return of an investment.
The basic concept behind binary option hedging is quiet simple –
An investor takes two opposite directions on a trade simultaneously.
It means both a call option and put option are used concurrently to reduce
the chances of losing, thus maximizing profit.
The Reversal: The reversal is a very popular option strategy
that can bring high returns when market conditions are right. Sometimes
underlying assets can rise or fall in value way beyond their normal trading
levels, when these deviations occur traders will abruptly buy a Call or Put
option on the assumption that the upward or downward trend will eventually
return to normal trading prices after a period.
Trading with the trend: In binary options trading you will often
hear the expression “The Trend is your Friend” and trading with the trend is
one of the easier, beginner friendly, strategies.
This strategy requires that investors wait for major movements
in the price of an underlying asset. This movement could be up or down. When
such movements take place a Call or Put option is taken depending on the
direction of the trend.
A trend is only regarded as a trend when the direction of the
underlying assets holds its course for a certain period of time. anyoption
helps traders to understand the trend, by giving them full knowledge of current
market trends in real-time, via our “Live” feature found on our platforms
homepage.
Using the right strategy with anyoption
Don’t know anything about binary option strategies? Not a
problem! Want to advance your existing knowledge? That’s fine too! Our teams of
analysts and expert traders are always on hand to provide you with support and
guidance. Join now and see how easy and worthwhile investments can be, while
applying good trading strategies with anyoption.
TRADING BROKER
cHOOSING A BINARY OPTIONS BROKER
Choosing a binary option broker is a difficult decision to make.
Binary option sites pop up faster than you can count them and deciding on the
right broker to invest with is becoming harder than ever before.
So how can you ensure that you are choosing the right broker?
It’s a difficult question to answer, much like choosing a bank
or a stock broker. Luckily, we are here to help make this process easy.
When deciding on the best binary options broker to invest with,
it is important to ask at least four major questions:
·
Can I trust the site?
·
Is it easy and fun to use?
·
Does it offer all the assets in which I want to invest?
·
Is it profitable to invest here?
It is good to note that not all brokers are the same and not all
of them offer the same standard of service as anyoption. Being the world
leading binary option platform, anyoption is a pioneer in the industry since
2008 and growing with the industry ever since, leading the pack with the best
product and most innovative ideas out there. So what makes anyoption the number
one choice for so many investors world-wide? Here are just some of the reasons.
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| Binary Option Broker - is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. |
anyoption ™ - Your Money is Safe with Us
With hundreds of thousands of traders already registered, all
transactions are fully secure and safe. We work with the top security systems
in the industry and operate extensive systems to secure every deposit and
withdrawal, ensuring your money is always safe. Our systems reflect levels true
to form. In fact, we believe in transparency so much, we show you real time
trading of our real traders on site!
Easy as 1, 2, 3
Anyone can trade binary options using the anyoption platform. No
prior experience or knowledge is needed. Our website is self-explanatory and
intuitive and once you access the member’s area you can be trading live within
minutes.
The trading dashboard is designed with simplicity in-mind,
allowing investors to track and manage multiple trades at once with ease. Our
platform is 100% online based and requires no additional software which can
often cause issues such as delays or time-outs.
Trade Any Option with anyoption
Some brokers will offer a limited selection of underlying assets
from which investors can trade. This limits ones earning potential, while also
preventing investors from specializing in specific stock options, such
as Apple and Facebook.
At anyoption we offer hundreds of assets to trade with, one of
the largest selections offered by any binary option-trading broker. Investors
can choose from stocks, commodities, indices and currency pairs from leading
stock exchanges around the globe.
High Payouts, No Commissions
Anyoption does not take commissions on binary options purchased
and offers high return rates of up to 71% back, no spreads – which means you
can cash the money right-out. Other trading tools we offer will let you earn
much more, up to 380% return on your investments on the weekend. Be sure to
check them out!
To find out more about what makes anyoption the number one
binary option broker for hundreds and thousands of investors sign-up for a free account today.
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| Sign up! |
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