Wednesday, April 20, 2011

How to Make the Binary Options System Work for You!

Trading on the stock market can seem like a risky thing, and it will be if you don't know what you're doing. Placing a long term investment might seem hard, because you have to wait while prices rise and fall before you can be confident in selling for a decent profit. You might have to wait months before you can sell at a decent price, and that's a lot of time watching the stocks and biting your finger nails.

Knowing about the binary options system will make this 'game' a lot easier. There are many benefits of binary options and binary trading over regular stock market trading. For one thing, the binary options system works in small bursts. At the most you might have to wait 24 hours before you know the results, but most binary trades are bought and sold within 20 minutes. This is because the binary options system works on small changes within the market, not long-term investments.

Thinking of binary options trading like placing a bet on heads or tails will make this seem simpler. In heads or tails, there are only two options; heads or tails. The same goes for binary trading, the stock either pays off or it doesn't. This makes binary options trading a lot more fun, because you don't need to be sitting around making complex mathematical calculations, you just buy if you think it the stock will do one thing, or don't buy if you think it won't.

Binary options pay out on a scale of 0-100. If the stock doesn't work out, it pays out 0, if it's worth 100, and you get the difference between what you bought it at and 100.

Let's look at an example and see if you can work out how to make the binary options system work to gain a profit.

Apple share prices are currently selling at 334.20. You could try to buy a number of stocks, but binary trading is quicker and easier. By looking around you will see that these shares have dropped over the past few hours, but you think that in an hour the stocks will rise. You buy three binary trading contracts for $5 at 45, so that's $675 (three stocks at $5 at 45) at 12pm. Sounds like a lot of money, but at 1pm the Apple share prices are at 334.60. That's a rise, so your 'bet' has paid off. Three options at $5, with a difference of 55 means you get $825, a profit of $150. I don't know of any job that pays $150 an hour.

Would you like to learn more about Financial Fixed Odds and Binary Trading and receive your own Free Trading System?

Simply visit us now at http://www.elmtrader.co.uk/

Neil is a writer and trader who runs the successful Elm Trader site.

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