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Earlier, binary option trading was a forte only of the experienced and veterans of this industry. Over the years, the benefits that this form of trading has offered to traders have caused an increase in the number of individuals that have tried their luck with this trade form.
One of the main reasons why binary option trading has appealed to traders is due to the fact that traders have the freedom to limit their risk by selecting the amount they want to invest. So, you are mentally prepared that if you invest a particular amount of cash in the trade, you will not lose more than what you invest. As such, the amount you can risk in the trade can be decided by you.
Although the trading patterns or strategies opted for by one trader usually differs from the other but there is a general rule of the thumb. And this is as follows-
The option is said to be “in the money” provided the trade ends above the target price also called the strike price when call option is opted for or below the strike price when a put option is opted for.
The option, on the other hand is said to be “out of the money” in case the trade expires below the strike price when call option is opted for or above the strike price when the put option is opted for.
As far as the payouts are concerned, it varies between 65% and 95% depending on the trading platform you are opting for aside from the strategies and tools you have used in the trade. There are few traders that prefer to “give back” or compensate a part of your money that you have lost when the trade was “out of the money”. As such, the loss you incur when the option is “out of the money” is compensated to some extent. If you are looking for information about the brokers that compensate traders for the loss incurred, you can visit binary-options-brokers.com. Here you will find details about the binary brokers and you can access their profiles.
What are the valuable tips of binary option trading?
If you have just started out in this field, it does not make sense in rushing into a trade. Adopt a slow and steady pace for the first trade. Understand the concept of trade, the selection of assets, pricing the asset, predicting the movement of the price of the asset, and bonuses and payouts, the risks involved and then take the plunge. In this way, even if you lose your investment in the first trade, you will not have anyone to blame for your actions and you will not have any regrets too.
Selecting reliable and experienced binary option trading brokers is crucial. As mentioned above, you can visit the website binary-options-brokers.com to know more about the brokers, their past track record, reviews and feedback from clients that have already availed the services of the brokers. Do a bit of homework before you sign up for any trading platform.
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