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Types of Binary Options
When most people hear of Binary Options they will only have a brief understanding of this type of financial investment. Most articles will discuss the basics of trading Binary Options but may not discuss the many types of options that are actually available. There are five main types of Binary Options that can be traded through a reliable broker. These include cash or nothing, asset or nothing, one touch, no touch and double one touch or double no touch. Most references to trading Binary Options will be based on the cash or nothing model, but it is important for traders to be aware of these other options as well.
The cash or nothing Binary Options are the most popular. With this type, a stake price will be determined and a contract will be bought for a Call or a Put, depending on whether the trader thinks the asset price will rise or fall. With these options, there is a fixed return that is usually between 170% and 200%. In some cases, brokers will offer a 10% or 15% return even when they lose their stake. Asset or nothing options are almost the same as cash or nothing. With these, the payout will be determined by the price of the asset instead of an arbitrary stake.
A one touch Binary Option is also common and this works a bit differently. With these options, the contract will end once the asset reached a predetermined level. With these, the investor will simply be deciding whether the price will reach that level or not. A no touch option in the exact opposite and traders will choose that the asset will not reach the predetermined price.
Double touch Binary Options are similar to the single counterparts but there is one important distinction between the two options. Instead of there being a single predetermined price, there are two prices. The asset price must touch on both prices in order for the contract to pay out. These five options are offered at most brokers and traders will find that with these choices, Binary Options trading can become quite exciting and rewarding.
Forex Related Articles
There's a lot that to know when it comes to Forex trading which is why WorldForex.org will continue adding articles and new information to this website on a regular basis. Please visit us and come back to our website from time to time for the latest Forex technicals, charts and other information.
June 20, 2017
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The 1 Minute Scalping Strategy
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Forex traders who have experience in trading will be aware of many different strategies and techniques that can help generate successful trades and profits. One of the common strategies that is used is the 1 minute scalping strategy. In regards to the Forex market, scalping refers to method of trading specific currencies based on technical analysis. Traders will have the goal of making a profit by buying or selling while holding positions for a very limited amount of time and closing the trade to earn small profits. Most trades with the 1 minute strategy will be held for one minute or less.
June 2, 2017
When new traders make the decision to start investing online, they will have to make an important decision to begin, which is selecting a trading platform. A platform is the software that will be used to send information between the trader and their selected broker. This software can offer a large amount of information including charts and quotes and it is also used to enter orders that will be executed. There are different types of platforms, such as local platforms, which are installed on the computer by the trader and web based platforms, that are run with Java. The advantage of a web based platform is that it can be used by any operating system, so it is accessible to more traders.
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Forex trading has become one of the most popular forms of investing and since it can all be done online with ease, it is simple for traders to access brokers and conduct trades at any time. While the Forex market may seem easy to enter, there are many things that must be considered before trading. There is a risk involved and traders who enter the market with little knowledge or no information on proven strategies will have a difficult time enjoying any success. Here, we discuss some strategies that have been used over the years and continue to provide traders with the tools they need to conduct successful trades and start generating profits.
May 5, 2017
Investing in the Forex market can be quite exciting and there are many options that can generate amazing profits. Unfortunately, many traders enter the market without the knowledge they should have and they often make common mistakes that can lead to unnecessary losses. Making mistakes while trading is part of the learning process, but there are some mistakes that can easily be avoided. For those that are price action traders, there is not as much information available online, so common mistakes are often made because traders cannot find the right information to help them conduct these tyupes of trades. Here, we discuss the top three price action trading mistakes that are made.