Binary Options Live Trade Examples

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By analyzing a number of real trading examples, you will rapidly learn how simple it is to trade binary options and why so many individuals are utilizing them to generate additional money. For example, envisage that your broker has just sent you a signal informing you about a quality opportunity to execute a new binary option based on the EUR/AUD currency pair.

 

Sample 1

Now what do you do? Race around in circles in a blind panic. No, you do not because acquiring profits from such a position could barely be any more simple. To appreciate why, you need to study the daily EUR/AUD chart, as displayed by the next chart.

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Your binary option broker advises you to execute a new ‘PUT’ binary option straightaway because price has just plunged beneath a key support level labeled as S1 above. In addition, you are advised to choose the daily expiry time.

You next need to select an optimum amount to bet on your new trade so that you do not expose your equity to high levels of risk. You can simply accomplish this objective with confidence by just adhering to the advice of experts who recommend not risking more than two percent of your total equity per position.

By following this guideline, you will always know that your account balance will be well safeguarded even in the worst circumstances. For example, if the inconceivable occurs and you endure twelve successive losses in a row, you would still possess over 78% of your original funds. Consequently, you do not need to be concerned about constantly reloading your account even if such a mishap happens, no matter how unlikely.

So, you have now performed all the necessary assessments in just a matter of a few minutes. Could they be simpler? You must agree that you hardly need to be Einstein to do so.

Imagine that you decide to deposit $1,000 and then hit the ‘PUT’ button on your trading platform. You observe that the return ratio is 85% if your position ends ‘in-the-money’ while the rebate will be 10% if it finishes ‘out-of-the-money’. The opening price of your trade is 1.2190. At expiration, price records a closing value that is well beneath S2 on the above diagram by posting 1.2135. As your position finishes ‘in-the-money’, you receive a return of $1,850 which includes your initial wager of $1,000.

Now, you must agree that your profit was an impressive return for just a day’s effort. All you needed to do was hit a few buttons which took you just a couple of minutes to complete. What is even more inspiring is that all the difficult tasks were performed for you by your broker who supplied you with all the essential data.

 

Sample 2

Here is another simple illustration as presented by the following NZD/USD diagram.

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As before, you are recommended to instigate a ‘PUT’ binary option but this time with a 60 minutes expiry time after price slumped beneath S1. Your deposit is $4,000; the quoted return is 80% and the rebate is 10%. After one hour, price has dropped well below S1 and your position closes ‘in-the-money’. You collect an astonishing return of $7,200 for just 60 minutes of effort.

These authentic samples clearly illustrate why so many investors are choosing to trade binary options in order to acquire the additional cash that they desire.

How To Select the Optimum Strategy For You

You must first assess the enough of time you have to trade binary options on a daily basis. For instance, you will need a significant amount of time to track your active trades if you plan to implement strategies, such as scalping, that depend on the shorter time-frames.

If you are a beginner then you are strongly recommended to construct your strategies utilizing the longer time-frames ranging from the hourly upwards. You can will then be able the exploit the superior statistics associated with these time-frames permitting you to detect key price patterns more readily. As such, you will be able to evaluate your risk exposure per trade much better by providing optimum protection for your account balance.

 

Choosing a Technical Indicator

You have the option to select from a large choice of technical indicators.

Fundamentally, you should test as many of these tools as possible with the intent of evaluating which complies best with your objectives and aspirations. You can accomplish this goal by using a demo account and tweaking the primary parameters of each technical indicator.

After each experiment, you should then re-calculate the performance of the selected tool by determining the key performance parameters of your strategy. If you intend to construct your binary options strategy totally from scratch, then you will need to devote a suitable amount of time to undertake these trials properly.

This is why most professional traders recommend that you should utilize one of the many well-tested and proven strategies that are already available on the market, especially if you are a beginner. Once you have amassed the essential skills and experience at binary options trading, you can then progress on to devising your own methodologies, if you desire.

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