Define Range Binary Option

Binary Options Trading and Hedging

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

How Do I Trade Binary Options Nadex

You can break it down into fivesimple steps. First, you need to have some opinion onwhat might happen to a particular market at a particular point in time. There areplenty to choose from. Nadex offers binary options on a huge range of themost heavily traded forex, stock indices and commodities markets.Over 2400 contracts daily. So, after you decide which marketyou're interested in, let's say you're into commodities thencome step 2. Time to choose an asset. Exciting. We'll look at gold. We're alreadyalmost halfway done.

Amazing. Next, decide your moment of truth. That means selecting a strike price andan hourly, daily or weekly expiration. In other words, the exact price in time that you wanna make your prediction for. So if you choose 1:30pm today, then at1:30pm today, your trade will expire, and you'll know whether you made aprofit. Step 4, select a direction. Meaning if you think goldwill be higher than this amount at 1:30pm, you choose buy.If you think it will be lower, sell.

See how there's the maximum profitand maximum loss listed with the price of the contracté Yep, you'll always know how much moneyyou can lose or gain. That is called full disclosure. No surprises.With step 5, you've got options. You can either wait for the contract toexpire, or close out early. Yep, with Nadex, after you place a trade,you can change your mind. Close early to limit losses or lock ingains. And, well, that's it. I wasn't joking. Fivesimple steps

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