Binary Options – Win or Lose? (Don’t miss to visit our website newsfeeds http://feeds.feedburner.com/BOBrokerReviews) We have…

Binary Options – Win or Lose?

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We have already mentioned at an earlier stage in our posts, the concept of binary options trading is quite simple, because the trader doesn’t have to make many choices. In fact, your job as a trader is to choose whether to bet your money on a Call option or on a Put option.

Call/Put options are the simplest ones and they are currently one of the best ways to begin your binary options trading career.

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What is Call Option!!!

Let’s say that you’ve picked an asset that you want to trade and you’ve already read the data provided by the technical tools. You’ve analyzed all the information and recent financial news and you’ve reached to the conclusion that the asset’s price will go up in the next hour. In this case, you’ll have to place a trade on the asset and select the Call option.

Choosing the Call option means that you are predicting that the asset’s price will go up before the expiration time comes. Here’s an example of how trading with a Call option works. A trader selects the USD/JPY currency pair which currently trades at 99.15. The trader predicts that the pair’s price will go up in the next hour, so he opens a trade at 12:00 by selecting the Call option and sets an expiration time of 1 hour.

If the USD/JPY currency pair is above 99.15 after 60 minutes, then the trade will expire in the money and the trader will receive his payout. Respectively, if the price is below 99.15, say 99.05, the trade will expire out of the money and the trader will lose his investment.

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