Binary options trading is a fairly simple and popular technique that lacks the complexities of conventional trading. Plus, it doesn’t require a lot of money to get started. You can get from 60 to 500 percent profit in one hour!
We will focus on the simple, fixed-fee binary options available from various brokerage houses. Look for the company that offers the most excellent cash out of any binary options broker. It is possible to trade stocks, indices and commodities through the use of IQ Option binary options, but we will pay attention to the foreign exchange market due to the fast availability of charting packages and technical analysis tools at no cost to foreign exchange traders.
In a typical fixed payment binary options trade, a winning trade makes payments in the range of 60 to 70 percent, while a loss generates 15 percent of the return on your expenses. This equates to a total loss of 85 percent of your expenses. A probable gain of 60 to 70 percent versus a probable loss of 85 percent will not increase your chances.
However, there is a powerful iq options binary options hedging strategy that provides a number of benefits with an overall constructive expectation. By placing a put or put option on a call or put option, the trade will almost certainly generate at least a profit. Due to our pessimistic profit expectation, coexisting profit and loss will result in a 15 percent loss, and a gain will yield a profit of 60 to 70 percent!
The probable profit of 70 percent versus the probable loss of 15 percent is much greater than the possible loss of 85 percent! Here’s a good illustration of how this can be done. Suppose we are placing a call option in an upward movement. As long as this upward movement persists, we will profit at the expiration date.
However, what happens if the movement is reversed? This is a great opportunity to re-implement our powerful strategy. Just put a put option on the trend reversal. Provided that the expiration rate is higher than our call rate but lower than our call rate, we will have a total return of 60 to 70 percent of our invested capital.
In case one of the transactions ends in money, we will see a loss of 15 percent, provided that both transactions are of the same size. With these odds, we only need to earn about 25 percent of our trades to make a profit. Without this binary options trading strategy, we may need to succeed in more than half of our operations.
This agreement will not take place on a regular basis. But, as long as you are trading with a steady trend and are aware of possible reversals, you should witness a significant increase in binary options trading.