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Trading Binary Options

Jun 10 '16 | By mroja | Views: 141 | Comments: 0

As mentioned, the binary options Bank Tracker Bot Review  work on the criteria of two possible outcomes in a trade - gain or loss. Therefore the traders have the option of either buy or sell. The factors that decide the potentiality of an outcome are the price of the asset in the future, the expiry time and the direction of the movement of the asset. Also speculation in the financial market with regard to the happening or not happening of a particular condition or scenario, during a specified time also affects the binary options trade. The working of the binary options here is explained through an example.We take a commodity "A". Let us assume that its present share price is 430.25 and as a trader you want to speculate the price movement of this share within a time frame of say 2 hours.


As a trader, if you speculate that the price of the share "A" would rise above the current level then you should buy the binary call option. Now if the price of the share "A" goes above the current level at the end of the expiration time, that is, two hours, the option would be treated as "in-the-money" and you would receive the fixed amount of return as decided before hand. However if the price of the share "A" does not rise above the current price level, the trade would be termed as "out-of-the-money" and there would be no payout.


On the other hand if http://autobinarysignalssoftwarereviews.com/bank-tracker-bot-review/ you speculate the price of the share "A" to fall below the current price level you can buy the binary put option. Now at the end of the two hours or at the expiry time, if the price of the share "A" has fallen below the current price levels the trade would be considered "in-the-money" and you would receive the fixed payout as promised. While if the price of the share "A" does not fall as speculated the trade would be considered "out-of-the-money" and there would be no payouts.

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