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Binary Options – Weekly Markets Review

GlobalOption's leading platform brings you a weekly markets review on indices, binary stock options, forex and commodities. Our digital options trading platform allows you to turn your knowledge in the financial markets into up to 95% profit in one trade.

April 7th - April 11th, 2014
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Trading Binary Options

Are you ready to profit from binary options?

Want to get started with some basic tips?

Binary options trading is an easy, dynamic and profitable investment that requires three simple steps for each transaction. Also known as digital options, this financial derivative has only two possible outcomes for every trade you execute, and that simplicity allows you to understand and control your earnings firmly.


Let us define some terms for you and simplify the process even further:

Binary Options

The option of predicting whether the asset you chose will have a lower or higher value at the expiration of your option. All you need to do is pick the asset from our extensive list, make the prediction, and input the value you wish to invest. It is that simple!

There are four basic types of assets available to you: Stocks, Commodities, Forex Pairings and Indices. All these are selected from major financial markets worldwide, and enable you to trade binary options with well-known brands and currencies from various sectors and stock exchanges. Visit the Trading Area and learn everything you need to know about the full list of available options.



In the Money

One advantage of binary options is that payouts are high, fixed and known to you before you begin trading. Another significant benefit is that you can earn money regardless of the magnitude of the price change in the stock, commodity or index you chose.

You can make a significant profit even if the asset you selected just took a huge drop in the markets, or if it’s price went up by a mere fraction of a point. As long as you are In The Money, you win!

When executing a binary option trade you estimate whether the asset's value is going to be higher or lower upon the expiration time than it is when executing the trade, if you prediction is accurate, you are In The Money - expect a nice profit on the balance of your account!



Here is how you execute a binary options trade:

Binary call option

If you think the price at expiration time is going to be higher than the strike price (the price at the moment you executed the trade) you should place a binary call option.

If indeed the expiration price is higher than the strike price and your prediction was correct, you will be 'In the money' and make a nice profit over your initial trading amount.



Binary put option

If you think the price at expiration time is going to be lower than the strike price (the price at the moment you executed the trade) you should place a binary put option.

If indeed the expiration price is lower than the strike price for the underlying asset, then you're 'In the money' again and you will get the pre-known profit percentage out of your trade amount.

As you see, whether market prices are going up or down, there is profit to be made with binary options trading.



Underlying assets

When you trade binary options, you choose your trade from a few main categories; binary options on commodities, forex binary options, indices, future indices and binary stock options.

This asset you select is the one you will follow on the trading platform, to observe whether your prognosis was accurate. The platform will allow you to check the status of the asset live at all times until the expiration of your option.

Binary option payout

At EZTrader.com we offer you extremly high payouts, ranging from 68% and reaching even a 95% payout per each single trade. Each binary option (AKA digital option) has its specific payout written next to it and is something for you to know and consider before you execute the trade.



Out of the money

Incorrect predictions are part of the flow of investments in binary options. Do not be too hard on yourself when faced with such an outcome. Instead, go back to the drawing board, stick to your plan and strategy and remember that succeeding on every single trade is highly improbable.

The term "out of the money" refers to a binary option trade that resulted in an incorrect prediction. This means that the price's outcome upon expiration was in the opposite direction than what you have anticipated.

For example, if you have placed a binary call option, meaning you estimated the asset's price at the expiration time ("expiration price") will rise above its strike price (the price when executing the trade) but instead it has a lower value, your trade will be referred to as "Out of the money".

Alternatively, if you have placed a binary put option, meaning you estimated it will decrease in value, and instead the value upon expiration (Expiration Price) is higher than in the time of executing the trade, - this again is an example of being 'out of the money'.



At the Money

At the Money binary options are rare but will occur from time to time. In such a scenario, the strike price (price at the time of executing the trade) will be equal to the price of the asset upon expiration (expiration price). Another term to describe this situation is ""the breakeven point"".

Trading Binary Options

Now that you understand the basics of binary trading, go to our trading section and begin your experience with this exciting and profitable investments tool. You can start profiting today. Our team is here to assist you with any question or doubt in making your trading experience easy and awesome.

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* This Risk Warning Notice cannot and does not disclose all the risks and other significant aspects of option and derivative trading. You should not engage in option and/or derivative trading unless you understand the nature of such trading, how these instruments work, how you make a profit or a loss and the extent of your exposure to risk and loss. If you are in any doubt, please, seek professional advice. We also suggest you read through our site's Terms & Conditions before starting to trade with us.
Options, derivative products and related financial instruments involve significant risks and are not suitable for all investors.

The option prices are the prices by which GlobalOption is willing to issue an option for the underlying security, and are not the real time prices for the underlying securities

 

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