Bollinger Bands (BB) . This indicator shows the volatility and direction of the current trend. The horizontal line of BB signalizes the flat. During such periods it is better to leave the market, especially when the price channel is narrow.

If not, you lose your initial stake, and nothing more. There is no need to purchase the physical asset as such. Lot Size — This makes these Binary Options at the money at the point of purchase. In the case of a binary call, if the price at a certain date, ST, is larger than or equal to a strike price K, it will generate a payoff Q.

A put binary option pays off if the value finishes lower than its strike price A binary option is a type of option with a fixed payout in which you predict the outcome from two possible results. The binary options trader decides the amount of money he wants to bet and invests that amount when he buys the binary option. Call Option: An agreement between a buyer and seller that gives the buyer of the call the right to buy an underlying financial instrument at a specific price and binary option time.

So, it’s important to check out local requirements before placing your first bet. There are different rules and regulations applied to online trading and speculating, which work to make your experience safe and secure.

By purchasing a basic binary call option, put call parity binary options , the trader is simply speculating that the price of the underlying asset binary call option value will be higher than the current market price when the option expires, ….

Technical analysis is primarily the analysis of chart patterns showing the market situation at various intervals in the past. Based on this, a forecast is made about at what is a binary option point the market situation may repeat itself.

Select the analytical instrument depending on your style of trading and analysis. The quality of analytical instruments influences the work of the trading and the final result of his work. The modern and qualitative trading service should include a full range of analytical tools to simplify the trader’s work. Apply only the instruments that work you understand. Some instruments suit the technical analysis and some the fundamental analysis. Try not to use too many trading instruments, because you will receive too much information and binary option strategies won't be able to stick to your strategy. Three instruments are enough for a regular trading session. Analytical instruments are necessary to identify the profitable signals and the trend direction.

The trader needs to decide on the following: Let’s use a EUR/USD forex binary option contract with a payout of 90% as an example. A trader can either speculate on a rise in the price of this currency pair, or on the price to fall.

Is the Put-Call-Parity valid for binary (asset-or-nothing) options? I know that for regular options, binary option there are arbitrage opportunities when the put-call-parity does not hold. Since the price of Binary options reflect the probability of the options ending up in the money by expiration, put call parity in binary options are reflected in the fact that the ask price of one option and the bid price of the other at the same strike price will always be equal to $1. Jul 13, · Calculate the value of a call or put option or multi-option strategies A binary option spread, such as one set up binary call option value by purchasing a binary call at a given strike versus selling a binary call at a higher strike, is the cleanest way of implementing the view that the underlying remains with a defined range. If not, is there another formula for such exotic options?

Traders can also choose between different chart types (for example candlestick charts, Heikin-Ashi charts, line charts, bar charts, etc.), apply different timeframes, and use graphical tools to draw lines and other features on their charts.

This is a trend strategy that works for all types of assets. Such strategies don’t require the ability to react quickly, but they demand the capability to wait. So if you have enough time for the trading, you can safely apply the 10-minutes strategy "Calm river". Those who prefer calm and stable trading can use long and medium-term strategies.

Open the option on the next candle after the trading signal. This will help to effectively adjust the strategy to MACD reversal signals and to rebound from Moving Averages. In such situations, you can open trades at the first sign of a Moving Average reversal and strong signals. Stay away from the market during the flat periods. If necessary, change the parameters of indicators according to the market volatility. The longer the sideways movement on the market, the higher the probability of a strong trend after its completion.

To determine how the price will behave, a good trader takes into account and analyzes all these factors, understanding how they can impact the market. Only the trader that understands technical and fundamental analysis can make the correct forecast. Both of these methods have their advantages. Learn them and then you can choose which type of analysis suits you more. Some traders use both methods, others prefer only one type of analysis.