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Use a Powerful Strategy to Make Binary Option Trading Very Lucrative

By Rill Bell Subscribe to RSS | January 10th 2012 | Views:
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Trading binary option is a reasonably straightforward and well-known method that doesn’t have the complexities of typical trading. Furthermore, there is no requirement for investing a massive amount of money in the beginning. You can easily attain profits of 60 to 500 percent in the span of one hour!

We will center on the uncomplicated, fixed-payoff binary options presented by quite a few brokerage companies. Search for a company that provides the most favorable payment of money amongst all the binary option brokers operating in the market. It is feasible to trade stocks, commodities and indices by resorting to such options, but we will devote all our attention to the currency market, owing to the quick accessibility to charting software programs and technical analysis tools without charge by FX traders.

In a standard fixed-payoff binary trading , a profit-oriented trade offers a gain in the scope of 60 to 70 percent, whereas a loss will generate a yield of 15 percent of your expenditure. This is equivalent to a total loss of 85 percent of your initial investment. A likely profit of 60-70 percent in comparison to a possible loss of 85 percent will not augur well for your future.

Even so, there is a powerful binary option hedging strategy that produces a profit level with a positive anticipation in most cases. By preferring a Put or sell option over a Call or buy one, it is virtually guaranteed that at least one trade will yield profits for the trader. Because of our negative profit prediction, a failure will lead to a loss of 15 percent, whilst a success is going to produce a profit of 60 to 70 percent!

An expected gain of 70 percent against a potential loss 15 percent is much better to a likely loss of 85 percent! Here is a nice example of how it can be accomplished. Imagine that we are putting a Call option in an upwardly direction. As long as this upward motion sustains, we are going to make earnings at the time of expiry.

Nevertheless, what will come about if the movement changes to the contrary? This is the brilliant opportunity to exercise our potent strategy one more time. Simply position a Put option in the direction of the trend regression. On precondition that the expiration rate goes above our Call option strike rate, but comes below our Put option strike rate, we are going to achieve a full profit of 60 to 70 percent of the invested amount.

In the event one of the deals winds up out of the money, we will experience a loss of 15 percent, assuming that both trades would be of the similar volume. With these possibilities, we simply have to win more or less 25 percent of our deals to make a profit. Without this binary option trading strategy, we might need to be victorious in over one half of our trades.

This setting will not happen in a regular manner. Nevertheless, given that you frequently carry out trading into a firm trend, and become familiar with potential reversals, you should experience a respectable profit in such trading.

Rill Bell - About Author:
Rill bell is an experienced trader of stocks, currencies, commodities and many more. In the wake of rising popularity of binary option , he offers all kinds of updated market news, strategies and tips related to binary options trading through his website. Visit the site to expand your knowledge base.

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