Binary put option trading strategy
The binary options trader buys a basic binary put option if he is bearish on the underlying in the very near term.
This basic binary put option is also known as the common "High-Low" binary put option. By purchasing a basic binary put option, the trader is simply speculating that the price of the underlying asset will be lower than the current market price when the option expires, typically within next few minutes or several hours. It is entirely up to the trader how much he wishes to invest with each purchase of the binary put option.
The minimum and maximum he can invest in each put option varies across brokerages. If the price of the underlying is below the strike price of the binary put option, the option expires in the money and the trader stands to receive a payout. Otherwise, the option expires out of the binary put option trading strategy and he loses his initial investment.
In the rare event where the price of the underlying asset is exactly the same as the strike price, the option expires at-the-money and the trader will simply get back his original investment. If the option expires out of binary put option trading strategy money, binary put option trading strategy trader loses his initial investment. This is also the maximum he can lose in this trade. If the binary options trader is bullish on the underlying price, he or she can buy a binary call option instead.
Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. Is binary option a legitimate financial instrument or just another form of gambling Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency Learn how you can get scammed when trading binary options if you are not careful With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options?
Stocks, futures and binary options trading discussed on this website can be considered High-Risk Trading Operations and their execution can be very risky and may result in significant losses or even in a total loss of all funds on your account. You should not risk more than you afford to lose.
Before deciding to trade, you need to ensure that you understand the risks binary put option trading strategy taking into account your investment objectives and level of experience. Information on this website is provided strictly for informational and educational purposes only and is not intended as a trading recommendation service. What are Binary Options? Is Binary Options Trading a Scam? How to Select a Binary Options Broker? The financial products offered by the company carry a high level of risk and can result in the binary put option trading strategy of all your funds.
You should never invest money that you cannot afford to lose.
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