A Winning Binary Options Strategy

Submitted by: Sean Goudeloc

No single binary options strategy will deliver the same results for all who use it as different people use different ways of reading, analyzing, and playing the ever risky financial trading game. This, however, should not deter you from investing in this opportunity and possibly make a considerable return if that is your desire. The primary goal of every strategy is to establish and develop a detailed plan of action that you can use to minimize the risks involved in financial trading. Sticking to this plan will promote discipline which is essentially disregarding emotions that may only serve to hinder your progress towards profit.

If you wish to invest in binary options, you may find that either a specific trading strategy or a combination of two or more strategies will deliver positive results. Although strategies having to do with binary options are too many to mention, experienced investors have outlined some of the more important ones that may be applied in most cases:

1. Reversal is the binary options strategy wherein you buy an option contrary to an asset’s present trend, especially if the price movement is radical going either up or down. An investor who employs this strategy realizes that the price of an asset will not remain indefinitely at a certain point and may perhaps revert to its original trading value. Reversal takes into account the proven axiom that what goes up must come down and usually at the same speed at which it climbed.

2. The hedging binary options strategy entails safeguarding whatever profit has been made on an asset prior to its maturity, often when there is little time left. An investor will sell an asset to realize his or her present gains in anticipation of any downward price movement. He or she may also retain a portion of the asset and possibly earn more from it if the asset remains in the money all the way up to maturity. The buyer will at the very least get back his or her initial investment along with a little income while leaving the remainder for any last-minute trades. Additional profit can still be realized from the remaining asset but if the opposite is true, any losses will be more than offset by the gains made from the earlier selling before maturity.

3. Double trading is most often used by investors who have a good grasp of what goes on in the financial market. If an investor buys an asset and then sees that it is performing to his or her advantage prior to maturity, he or she may buy more of the same asset as long as the option follows the same movement towards the final price.

4. Pairing or straddling is a variation of double trading. It refers to buying put and call options that are both in the money. If the price upon maturity is anywhere between the two prices at which you bought the asset, you can still generate a return.

Whichever binary options strategy you feel will earn you a substantial return, you must have a good understanding of the market and its trends, the willingness to use your available resources wisely, and the discipline to stick to your chosen strategy every time you trade.

About the Author: If you are looking for more information about binary options strategy, click on http://binary-options-pro.com/ to download our free report on binary options.

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Top Five Reasons to Sell Weekly Call Options

Submitted by: Timothy Leary

An amazing income opportunity is now here with weekly call options. “Weeklys” come out every Thursday and expire the following Friday. There are no new Weeklys in the final week where the monthly options expire. You can just write the next week from the monthly list.

Although Weeklys have been around since 2005, it has only been since the summer of 2010 that the offerings have been expanded to include stocks and ETS like Apple, Amazon. Intel, Microsoft, Research in Motion, Cisco and Las Vegas Sands, to name a few. On the ETF side, there are QQQQ, GDL, GDX, USO, SLV and more, as well as the SPX and the OEX.

How Weeklys Super Size Your Trading Account

You Get to Sell 4 Times a Month!

Selling call options four times a month versus once is a pure gift. An experienced covered call writer can earn A LOT more premium. Doubling the monthlies in many cases is not unreasonable. Also, if you use a long-dated put for protection, this “insurance” can be paid for very fast due to more writes per month.

8 Days a Week Versus 30

Forecasting eight days instead of thirty is a piece of cake; it’s much easier to look at what is happening in the week ahead. One of the biggest complaints about covered call writing is what to do if the stock really runs up and you have to either forgo the increased gains over the call option strike you sold or buy back the call at a much higher price. If this happens, it’s a lot easier to adjust over one week and reset with a new trend the next week.

Accelerated Time Decay

Call writers depend on time decay. With Weeklys, time decay is greatly accelerated. There have been times that calls I sold on Thursday morning on introduction eroded over 30% by Monday’s close. How cool is that? You can write near-the-money calls or at-the-money-calls and collect the higher premiums due to the rapid time decay.

Skip Earnings Week and Relax

How many times have you crossed your legs and held your nose during earnings week? Well, now you can just sit it out. Weeklys offer the ultimate in flexibility. You can also trade the news that week before or after the event. Again, you can be in or out of the market weekly. THAT is flexible.

Selling Weekly Puts for Even More Premium

Weeklys offer an astonishing opportunity to super size returns by selling a naked put or a put spread (to limit risk and to use less margin) for more premium. Just follow normal put selling rules; sell below a strong support point, at least one strike out of the money and maybe more if the premiums are good.

It’s amazing how many experienced investors and fund managers do not know much about weekly options. The word is spreading. There is a lot to know about the various covered call writing strategies for up, down or sideways markets. The more you learn, the more you earn.

About the Author: Tim Leary is a full time trader and writes (sells) covered calls, earning 3% to 5% monthly in bull and bear markets, with limited risk. To get a 50-page covered call writing report, click here. To learn more call strategies click here

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A Winning System For Binary Options

Submitted by: Sean Goudeloc

Choosing a binary options trading system that will work best for you is similar to actual binary options trading in that you have to exercise an eye for detail, a scrutinizing mind, and good judgment. Trading in binary options is inherently risky, but with the possibility of return of a hundred percent or even greater on your initial investment, it would be difficult to ignore such a potentially lucrative opportunity. An effective automated system can streamline all the tasks involved in such trading, thus affording you a considerable edge over other investors and allowing you to make more money than is otherwise possible.

Each binary options trading system made available today has automatic trading as its most prominent feature. An effective system will do all the online trading work for you, even if your computer is nowhere nearby. According to observers, the automation’s most important attribute is the elimination of human emotion—often cited as one of the major obstacles to investing wisely—from the decision-making process. This is especially true in the case of income shortfalls wherein inexperienced investors, having become distraught with their losses, resort to mere guesswork in a hasty yet futile effort to get themselves “out of the red.” Guesswork could result in greater losses whereas informed decisions have a greater chance of earning profit, especially if such decisions are made all the time.

So how then does one choose a winning binary options trading system among a wide selection offering different features and services? Although there is no single system that can be hailed as the best, observers have identified the most important criteria in selecting a system with the potential of making binary options trading more efficient and therefore more profitable. It will depend entirely on the system’s effectiveness in satisfying the user’s needs.

Although a system will afford you tighter control over your trading, it has to have at least a fair degree of user-friendliness. If a system is supposed to make the act of trading easier, any difficulty in using the system, particularly in browsing through and utilizing the included functions, will offset the efficiency expected by clients. If you want to engage in foreign currency trading, make sure the system you will use can support many pairs of currency denominations (e.g., US Dollar-Euro, US Dollar-UK Pound).

Security is always a major concern because you’re essentially entrusting your money to a system that does all the trading for you. A system of 128-bit or higher SSL encryption is often regarded as having the necessary security features.

In trading binary options, even a single penny can mean a lot. If you’re faced with an “out of the money” option, an effective trading system is one that will guarantee you even a little payback to help cut your losses.

Lastly, the binary options trading system that will work best for you is the one whose minimum deposit amount falls within your current financial capacity. Such a feature is especially beneficial for beginning investors who cannot yet afford to part with substantial amounts of their hard-earned savings. Most trading systems require a minimum deposit of $100 though it can go as low as $50 for a few others.

About the Author: If you are looking for more information about binary options trading system, click on http://binary-options-pro.com/ to download our free report on binary options.

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What Are Binary Options?

Submitted by: Chris Carter

In today's trading market there are literally dozens of options for the investor. Day trading, futures trading, commodities trading, FOREX trading (Foreign currency trading) just to name a few and are all viable trading options in today's market. But less are as popular today as binary option trading. Some people have heard of it some and people have not but the fact of the matter is, it is one of the more popular and risk to ROI types of trading in the business.

Here is a little history on options and how binary options evolved before we get started: The trading of options has been around for many decades and for a majority of that time was pretty much unregulated. Option trading was primarily considered OTC or over-the-counter transactions with very little regulation. Then in 1973 the Chicago Board Options Exchange was formed as a venue for trading options with specific regulations. Along with the formation of the Options Clearing Corporation, option traders could now be held to a higher standard of accountability for any trade they make punishable by temporary or permanent suspension for any regulation indiscretions.

Binary options became a derivative of standard options trading early on and itself was primarily an over-the-counter transaction with minimal regulations. Binary options at first were actually one smaller part of much larger complex options and at that time were not considered much of a viable trading option. It wasn't until recent years in the mid 2000’s that binary options would start to gain a foothold. With its increased popularity, in 2007 the Options Clearing Corporation made a change in the rules to allow binary options to be legal tradable contracts on the open market. As you can imagine with this change binary options popularity skyrocketed and in 2008 the American Stock Exchange became the first exchange to offer binary options publicly.

So what is a Binary option? A binary option allows for a payoff that is a fixed amount of an asset or nothing at all. It is a very black and white cut and dried form of option trading. Binary options exist in two main types: cash-or- nothing and asset-or-nothing. From either you are going to get only one of two results, and you are either in the money or out of the money hence the name binary. With a cash-or-nothing binary option a fixed amount is paid in cash if the option expires in the money. With the asset-or-nothing option, the value of underlying security is what pays. For example, let's say you purchase a cash-or-nothing call option on Acme Company’s stock at $50 with a binary payoff of $500. Then at the maturity date if Acme company's stock is trading at $50 or above you receive $500, if it is trading at less than $50 you get nothing including your initial investment.

Due to the Internet and the creation as well as implementation of many extraordinary tools for trading, binary options popularity has soared. Due to the expansion of online trading, now your everyday average day trader can now partake in every form of trading as well as option trading right from the comforts of home and binary options have become the trade of choice.

About the Author: Are you looking for more information regarding binary options ? Visit http://www.binaryoptions101.com/ today!

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Binary Options Demo Account

Submitted by: Jenny M White

Opening a demo account dealing with binary options and with a trusted broker is an excellent method to learn the binary options market. If you are considering risking money to get into the binary options trading, first open a money-free trading account. Demos will teach you how to master your binary options and provides the option to broaden or expand the functionality of your account, start a broader account and use delayed starter options account.

To become successful and profitable, gain a mastery of online trading. If you are happy with the progress you make and find that you are confident in trading, partner with the companies you worked with using their free binary option demo accounts.

Play it Safe before You Invest

Demo accounts provide real life experiences in trading. You actively engage in trading in the current market. Learning about binary options includes experiencing the stock market, reading tables, and following trends. Develop your trading strategy without risking real money. These accounts offer resources for both the novice and the expert trader. Training gives accessibility to broker platforms where you can conduct no-risk trades. Learn how to use analysis tools, plus using platform features.

There are two types of these accounts. The most typical account is the standard free account that permits you access different trading platforms, educational materials and broker features. However, standard accounts do not enable simulated trading. You may want to invest in a demo account that offers the same educational materials of a standard account, but gives you the choice to take part in simulated binary options trading.

There are several brokers that offer demo accounts complete with the opportunity to participate in simulated trading. These brokers are also considered to be highly reputable and perhaps investment houses that you may want to partner with when you open a real trading account.

Broker Investment Houses

OptionFair provides a demo account that offers trading simulators used to experience real trading. This simulator provides trade types to be tested and instruction tools and resources. You have access to trading webinars and tutorials to enhance your learning curve.

Try out OptionBit a broker providing demo accounts with simulated trading inside an actual platform. There are e-Courses and training to those who have never traded. After learning on the demo account, OptionBit offers trading tutorials and a platform identical to the demo account.

A third option is Banc De Binary. Their account comprises of $50,000 in trading funds to be used in the simulated trade tutorial. You will need to establish a conventional account with a deposit of $250 before you have access to the account. This is a bit different than free binary options ones, but if you are serious about entering into binary options trading you will have a huge advantage over those who just use non-funded simulators.

Before entering into the world of binary options trading, use demo accounts that will introduce you into trading without taking risks. Take advantage of the learning techniques to gain a tremendous start in trading.

About the Author: For more information, visit http://www.binaryoptionsexperts.com/ affiliate where affiliate marketers are invited to sign up for a free account and get started marketing & making money right away! For help with your content and Internet marketing, visit this virtual assistants site.

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