In this article we will be taking a look at trading financial
markets with Binary Bets. The financial markets can be very volatile and
the traditional ways of trading such as buying and selling shares, or
more recently, by spread betting, can carry very high risks of losses.
The reason for this is that markets can move very quickly against you,
for instance if they react badly to sudden news release or bad trading
results.
A good way of capitalising on the volatility of the markets, but fixing your risk is to trade Binary Options, also known as Binary Bets. They work well in fast moving markets and remove the stress of potential runaway losses.
What is a Binary Bet?
A binary bet is actually very simple, having two possible outcomes, hence the name binary. The event will either happen or it won't. So you might bet that the ftse100 index will end higher today. If it does you win, if it doesn't you lose.
Pricing of Bets
The price will be between the values of 0 and 100. If the above bet was priced at 33 when you bought it, you know exactly what you stand to win and lose. If the ftse100 closes higher, the bet closes out at 100 and you win 77 x your stake. If it closes lower you lose 33 x your stake.
Most binary betting brokers make it even easier to understand the pricing, they have trading platforms where you choose your bet, and how much you want to win and they will give you a purchase price based on the above principle.
Types of Bet
There are a few common bets that you will see all the brokers offering.:
• Higher - where you bet that the price of the asset will close higher in a given time frame
• Lower - where you bet that the price of the asset will close lower in a given time frame
• One Touch - where you bet that the price of an asset will touch a certain level in a given time frame
• Tunnel - where you bet that the price of an asset will stay within a certain range in a given time frame
Instruments or Assets
The things that you can bet on are often called Assets or Instruments. Typically these are individual company shares e.g. VOD Vodafone, GSK Glaxo Smith Kline etc, stock indexes like the FTSE or Dow Jones or Commodities such as oil, wheat and sugar,
Getting the Edge on the House
There are ways of helping you to predict what the financial markets are going to do next. This way it is not just a game of chance. I you do your homework and learn some simple charting techniques, you do actually stand a chance of getting the upper hand.
A good way of capitalising on the volatility of the markets, but fixing your risk is to trade Binary Options, also known as Binary Bets. They work well in fast moving markets and remove the stress of potential runaway losses.
What is a Binary Bet?
A binary bet is actually very simple, having two possible outcomes, hence the name binary. The event will either happen or it won't. So you might bet that the ftse100 index will end higher today. If it does you win, if it doesn't you lose.
Pricing of Bets
The price will be between the values of 0 and 100. If the above bet was priced at 33 when you bought it, you know exactly what you stand to win and lose. If the ftse100 closes higher, the bet closes out at 100 and you win 77 x your stake. If it closes lower you lose 33 x your stake.
Most binary betting brokers make it even easier to understand the pricing, they have trading platforms where you choose your bet, and how much you want to win and they will give you a purchase price based on the above principle.
Types of Bet
There are a few common bets that you will see all the brokers offering.:
• Higher - where you bet that the price of the asset will close higher in a given time frame
• Lower - where you bet that the price of the asset will close lower in a given time frame
• One Touch - where you bet that the price of an asset will touch a certain level in a given time frame
• Tunnel - where you bet that the price of an asset will stay within a certain range in a given time frame
Instruments or Assets
The things that you can bet on are often called Assets or Instruments. Typically these are individual company shares e.g. VOD Vodafone, GSK Glaxo Smith Kline etc, stock indexes like the FTSE or Dow Jones or Commodities such as oil, wheat and sugar,
Getting the Edge on the House
There are ways of helping you to predict what the financial markets are going to do next. This way it is not just a game of chance. I you do your homework and learn some simple charting techniques, you do actually stand a chance of getting the upper hand.
