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
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Multiplying in binary Applying mathematical reasoning PreAlgebra Khan Academy
I now want to show youthat the standard algorithm for multiplying numbers can also be used, it's not just limited to base 10, it can also be used, franklyit can be used in any base, but we're going to do it in base two. And base two is especially fun, because you essentially have only to know your multiplication tables through one.
So you just have to knowthat zero times zero is zero, one times zero is zero, and that one times one is one. And then you're ready to go, you're ready to multiply in base two. So let's do that. So let's say we have. Let's say we take nine,
so let's see, nine isgoing to be one eight zero fours, zero twos and one. So this is nine, right overhere, represented in base two. And let's say we were to multiply that times seven, so we should, obviously, if we know our multiplication tables we should get 63. So seven is one; actuallyI'm going to put a zero,
seven would be one one one, but that's a little bit boring so let's instead do nine times five, whichwe know should be 45. So this is one four, no twos, and one one. So four plus one is going to be five. So this is nine times five and we're doing it in base two.
So once again, same algorithm. And actually, before I do it, I encourage you to just pause the tutorial, and try to use the same algorithm that you've used forbase ten multiplication, use the same algorithm here and let's see if we actually do get that nine times five is 45.
So I'm assuming you've had a go at it, let's work through it together. So let's start right over here in the ones place. So we multiply, one times one is one, one times zero is zero,one times zero is zero, one times one is one. Then, we can go