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What is Binary Options

Online Trading? Binary Options

Binary options online trading is a convenient option for all the traders out there. It provides trading through a very simple and easy-to-follow, yes or no proposition. The question does arise though that what exactly is Binary Options.

Binary Options: Yes or No?

Binary Option is an online financial option that provides you with two propositions, either that proposition turns out to be true or false at the expiration date of the option. There is also a fixed profit and loss involved in this option. This simplicity makes this one of the simplest trading options out there. This nature attracts a great deal of appeal from professional traders and also the newcomers of the financial market.

Want Convenience? Binary Options is the way!

As an online trader, no doubt it is an attractive and seemingly convenient way to trade, but the fact remains that proper knowledge of the market and the trends of online trading involving binary options is a crucial aspect needed for success. For a complete understanding of this, consider an option regarding the price of a certain commodity. You will have to guess the price of the commodity after the expiration date of the option. The price will either be higher or lower as compared to a certain fixed price, called the strike price. If the price is higher, you will make a profit. Contrary to this, if the price of the commodity at the time of expiration is below the strike price, you will lose the invested amount. The range of profit and loss is between $0-$100.

Give and Take:

Binary options trading is a give and take. The profit that you make is a loss someone else has to bear. It is all in all a zero-sum game. If you buy a binary option, someone will have to sell it to you and vice versa. So, the profit and the loss are shared by the two people. It is also possible to sell and buy multiple contracts (sizes) of binary options and you calculate the total profits or losses involved using a Nadex Trade Ticket.

Social Trading with Binary Options:

Are you looking for a way to increase your chances of a successful trade? You might want to look into Social Trading. Binary Options Social Trading is a new way to go about your trading activities by using the data based upon the public opinions and the information shared by other traders.

Since the increase in the appeal of online trading, there has been a sudden rise in the social activity involving traders and investors who come looking for a quick profit. Social Trading usually involves using the data generated by fellow traders or copying the practices used by traders who are known for getting regular profits. Social trading in binary options has risen many times over the years, but this time it is here to stay. This trend of social activity, traders helping each other pave the way for success for new traders as well as long time veterans.

Trading strategy? Try Darvas Box Strategy

One particular with well-known methods inside the field of trading is the Darvas Box Strategy. The Darvas Box Theory was developed by Nicolas Darvas, wherein he targeted the stocks using the highs and volume of trades as important indicators for getting into or exiting a specific market place. This approach includes making use of the higher points of stocks to trade and producing a box about the highs and lows in the market to determine the entering ad current point of a certain marketplace. These boxes also can be used to determine where to put the stop-loss order, which can be a strategy to limit the investors’ loss to a particular point.

Darvas Box Strategy, How Does it Work?

Darvas Box Theory does the job with all the momentum of your market. It is a method that consists of employing the market momentum together with the essential technical evaluation on the marketplace to determine the indicators which inform when to enter and exit a market. The Darvas box suggests to trade only utilizing the increasing boxes for trading and the breached substantial boxes are applied to update the place of the stop-loss purchase.

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