hi and welcome to the binary optionstrading tutorial this is Steve Wise and today we're going to talkabout the binary options hedge with a call and a put position and i just like to remind you that this tutorial and audio content and theslides therein are the property of binaryoptionbroker
and we're distributing this on so follow the guidelines on to usethis tutorial if you want redistributed and just bear in mind the rules andregulations with regarded to using it. all right so with that out of the way let's get started so let's take a look at a couple slidesi've made this first slide is
your basic naked binary option trade and what we've done here is we've takena binary option call on google we'vetaken a two hundred dollar position with a strike price at five seventy seven fifty per share that's what it was at the time i madethis slide in and made this discussion all the numbers all the details of thistrade that we talk about are covered on the website binaryoptionbroker
and you'll find all the information inall the all the percentages and what have you uh. there so if you have any questions about what thenumbers are and what they are meeting where they all came from that's all is going on the website but what i want to talk about in this tutorialis that this kind of position taking a nakedcall
binary option is very risky in it's not the kind of investment that isee as uh. a favorable one for you theinvestor and the reason why i say that is because there's so much downside risk and noprotection if things go awry and that's not the kind of trade iadvocate what i prefer to do
is i'd prefer to pair my binary option with another option either another security another optionanother binary option the underlying security itself maybe i already only underlying securityand i'm trying to make up some profit on that uh. taking advantage of market movementdownside upside what have you
What is spread betting An introduction for beginner traders IG
What is financial spread bettingéFinancial spread betting is a tax free alternative to trading,where you can bet on whether the market will go up or down. You don't need large amounts ofmoney to get started and you can take a position on thousandsof global markets including shares, indices, commodities and forex. How do I place a bet in each market you're presented with abuy and sell price:
if you think the market will move up youopen your bet at the buy price if you think it will move down youopen at the sell price The difference between these twoprices is the spread.The more the market movesin the direction you predict the more profit you make, the more themarket moves in the opposite direction the more you lose. What are the benefitséWhen you place a bet you don't need to put up the full valueof your position, just a small deposit this is called leverage and all profitsfrom spread betting
are taxfree. There's no commission and since you never own the underlying asset, you don't needto pay stamp duty and at IG we offer risk managementtools like guaranteed stops so you can exit a deal at the point youspecified this means you can know your maximumpotential loss before you bet. How do I startéFind out more about spread betting through our website or create an accountand start spread betting today it's free and there is no obligation todip.
Spread Betting Tips Strategies
What Losing Traders Do â€“ Multi MillionaireTrader Gives You Some Priceless Pointers Vince Stanzione has been trading futures,options and equities for around 25 years. As well as trading my own money I have tradedmoney for banks and I have been a broker for private clients. Over the years I have beenfascinated to discover the difference between winners and losers in this business.Try to learn from the points I am about to give you.1. Many traders trade without a plan. They do not define specific risk and profit objectivesbefore trading. Even if they establish a plan, they â€œsecond guessâ€� it and don't stickto it, particularly if the trade is a loss.
Consequently, they over trade and use theirequity to the limit (are undercapitalised), which puts them in a squeeze and forces themto liquidate positions. Usually, they liquidate the good trades and keep the bad ones.2. Many traders don't realise the news they hear and read has, in many cases, alreadybeen discounted by the market. Often, new traders jump into a market based on a storyin the morning paper; the market many times has already discounted the information.3. After several profitable trades, many speculators become wild and unconservative. They basetheir trades on hunches and long shots, rather than sound fundamental and technical reasoning,or put their money into one deal that â€œcan't
fail.â€�4. Traders often try to carry too big a position with too little capital, and trade too frequentlyfor the size of the account. 5. They fail to predefine risk, add to a losingposition, and fail to use stops. 6. They frequently have a directional bias;for example, always wanting to be long. A good trader should be happy to trade up ordown. 7. Lack of experience in the market causesmany traders to become emotionally andor financially committed to one trade, and unwillingor unable to take a loss. They may be unable to admit they have made a mistake.8. They over trade. Many new traders after
opening a Financial Spread betting accountare like a child with a new toy. They want to trade anything and everything. The newinternet dealing offered by most bookmakers has made it even worse.9. Many traders can't (or don't) take the small losses. They often stick with alosing trade until it really hurts, then take the loss. This is an undisciplined approachâ€¦atrader needs to develop and stick with a system. If you are following charts and a trendlineor moving average is broken, you must stick to your rules.â€œAll through time, people have basically acted and reacted the same way in the marketas a result of: greed, fear, ignorance, and
hope. That is why formations and patternsreoccur on a constant basis.â€� Jesse Livermore10. Many traders break a cardinal rule: â€œCut losses short. Let profits run.â€� Emotionmakes many traders hold a losing trade too long. Many traders don't discipline themselvesto take small losses and big gains. If you want to get a head start in the marketsand see your trades turn into profitable winners, join the hundreds of traders already learningfrom Vince Stanzione. To discover more go to fintrader .