Binary trading lately more and more popular, this is due to the ease and simplicity offered trading procedures. Binary is derived from the binary, ie the numbers 0 and 1. Which can be interpreted any (profit) or not (loss).
It is not as complicated as trading in general, which should have the ability to determine the value of take profit, stop loss value, number of lots, adequacy of capital (money management), and various other complexities, binary trading is very simple. Trader prosecuted only able to predict whether prices will go up or down a few hours ahead.
In binary trading, trading based on the value of the contract, not a lot. Please choose whether you want a contract worth $ 50 or $ 1000, depending on the adequacy of capital and the confidence level of prediction.
If believed to be within 1 hour ahead price will go up then purchased the contract CALL, otherwise if the price is believed to be down then purchased the contract PUT. The contract will expire in 1 hour and if the prediction is true then the profits will be obtained which ranged from 65% to 85%. Whereas if one prediction you will get 0% to 10% of capital at stake to buy the contract.
For example, in 1 hour ahead predicted that prices would go up then buy EURUSD CALL contracts valued at $ 1000 with a payout of 85%. The contract will expire next 1 hour, if the prediction is true then it will obtain profit of $ 850 at the time the contract expired. However, if the prediction is wrong, then is left of the capital is only $ 50.
Easy and very simple right?
No need to bother looking at the chart continuously, do not have to worry about stop losses, do not have to wait long for maximum profit for the first hour has expired contract and the profit has been received, and the most interesting is a larger profit than usual trading.
When calculated with a payout of 75% (in the money) and return 10% (out of the money), with a capital stake of $ 1000 you will get profit of $ 750 if the prediction is true and the loss of $ 900 if the prediction is wrong.
If the above calculation is analogous to the forex, it's the same with take profit of 75 pips and 90 pips stop loss. Indeed, the risk return ratio (RR) is not balanced because the value is greater than the value of stop losses take profit. But the potential for profit can earn 75 pips in less than an hour, would be very interesting.
For those who are accustomed to forex trading, of course, well aware that to obtain a 75 pip profit on forex trading, the chances of the day is only 1 or 2 times that in the event of trending.
Forex market in a day tend to move sideways so that the profit generated is generally around 20 - 50 pips for one entry. Later in the event of a new trending above 50 pips profit then eventually can be obtained. EURUSD moving average in a day is only about 120 pips, so to get above 50 pip profit for one entry only possible if the trending.
Compare this with the binary trading, the potential profit gain 65 sd 85 pips can be obtained every hour. Tempting is not it?
Recently a site in Australia to introduce a binary trading, which is not limited to trading only, but including the trading of stocks and indexes various major American stock exchanges.
Minimum capital required for trading in TradeSmarter only $ 100 and the contract is the minimum that can be purchased for $ 50. Interesting, because it does not need big capital. Deposit capital was too easy, you can use Credit Card, MoneyBookers, or bank transfer.
Almost for a week I noticed and studied the movement and how it trades. Very easy and simple as that done fairly determine the value of the contract to be purchased and predict the direction of the price of 1 hour.
Imagine how much potential that can be obtained in a day as long as the predictions are always right. Let's just use a capital of $ 250 and purchased the contract is valued at $ 100 EURUSD continuously for 10 hours of trading with an average payout of 75%.
Do 10 hours a day with trading the profit earned of $ 750. Compare done when regular trading, it is very difficult, not only with capital of $ 100 and can earn $ 750 profit in a day or 750% profit.
When wrong predictions, no more custom rear stop losses and hope against hope that the trend back toward the original. The amount of loss will remain limited and thus the overall capital exhausted to stay awake and not total due to improper trading only once.
However, to be able to earn consistent profits is not easy. Necessary skills at a very accurate prediction and precision. For those who have been accustomed to doing scalping, certainly not a difficult thing to determine the direction of the price of one hour ahead so as to obtain consistent profit.
Binary trading can also be used as an alternative to trading forex. During this week besides the EURUSD trading in Metatrader, I was also fun to make your own simulation predictions guesswork PUT and CALL:)
Later when it is getting trained, while waiting for entry or exit is right in Metatrader, then as an effort to fill the time just do it binary trading. After all, capital is small and the results are far more tolerable, as long as capable of accurate predictions.
Great potential and the restrictions on the amount of loss that drew me to write it, who knows there is interest among readers.
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