Stock Prices In The Over-The-Counter Market Are Determined By: Binary Forex Options Trading – How to Trade on Currency Pairs

You are searching about Stock Prices In The Over-The-Counter Market Are Determined By:, today we will share with you article about Stock Prices In The Over-The-Counter Market Are Determined By: was compiled and edited by our team from many sources on the internet. Hope this article on the topic Stock Prices In The Over-The-Counter Market Are Determined By: is useful to you.

Binary Forex Options Trading – How to Trade on Currency Pairs

Many traders think of the stock market when they hear about binary options. However, the Forex also offers retail traders great opportunities to make some high returns. Binary Forex options trading allows you to limit risk and see profit in little as one hour. Here we’ll discuss what Forex binary options are, how they are used and which strategies you can use to profit.

Let’s begin with a short explanation about the Forex before we get into binary Forex options trading. A global, decentralized over-the-counter financial market for the trading of currencies, the Forex, or Foreign Exchange Market, allows banks and other institutions to easily buy and sell foreign currencies. Financial centers around the world act as hubs for trading between a large variety of buyers and sellers day and night, except for weekends. For example, it enables an American company to import products from South Africa and pay in Rand even though its income is in dollars.

The exchange rates of currencies on the Forex fluctuate (floating currencies) according to the market. A currency’s value rises if the market demand for it surpasses the available supply and drops in the opposite scenario. This is where binary Forex options trading comes in – a new type of investment that allows the average person to be active on the Forex. Binary Forex options trading via an online platform offers you a tool to purchase Call and Put positions on chief currency pairs like the US Dollar against the Japanese Yen and the US Dollar against the Euro, among many others.

Online Binary Forex options trading enables the middle or amateur investor the chance to trade on the Forex with smaller amounts of capital but with the same high yield returns as any other method. Plus, returns can be collected in just one hour. What you are doing with this form of trading is attempting to predict whether or not one currency in a pair will trend up or down against the other.

Let’s look at the Forex options trading available at online binary options trading platform anyoption.com – a leader and pioneer in the field. They offer trading on the following pairs:

  • Australian Dollar (AUD)/US Dollar (USD)
  • Euro (EUR)/British Pound (GBP)
  • Euro (EUR)/Japanese Yen (JPY)
  • British Pound (GBP)/ Japanese Yen (JPY)
  • New Zealand Dollar (NZD)/US Dollar (USD)
  • Euro (EUR)/US Dollar (USD)
  • US Dollar (USD)/British Pound (GBP)
  • US Dollar (USD)/Japanese Yen (JPY)
  • US Dollar (USD)/ South African (RAND)
  • US Dollar (USD)/Canadian Dollar (CAD)
  • US Dollar (USD)/ Swiss Franc (CHF)

Each Forex options trading currency pair has an expiry level calculation. Let’s look at AUD/USD as an example. This currency pair, like most, has hourly, end of day, end of week and end of month expiry times. The expiry formula is the sum of the ASK value and the BID value, divided by two [(ASK+BID)/2]. The result is rounded up if the fifth decimal digit is 5 or higher and rounded down if the last decimal digit is 4 or lower.

Let’s say you have $2,000 in your binary options account and you decide to take up Forex options trading on the AUD/USD. Let’s use the recent rate of 0.91721 for this example and a 70% return rate. Earlier this week, you read that the AUD/USD fell from 0.9206 to 0.9145 and settled under 0.9170 after the Australian government released some disappointing growth figures.

So you predict that the AUD will continue to drop against the US dollar. You purchase a Put option for $500 with a one hour expiration. If your prediction is right and the price falls at the end of the hour, even if only by 0.001 below the strike price, you will collect $850 ($350 in returns plus your initial investment). So in the end, a $500 trade could easily earn you $350 in profits and you could repeat the same binary options trade a few times in one day.

Video about Stock Prices In The Over-The-Counter Market Are Determined By:

You can see more content about Stock Prices In The Over-The-Counter Market Are Determined By: on our youtube channel: Click Here

Question about Stock Prices In The Over-The-Counter Market Are Determined By:

If you have any questions about Stock Prices In The Over-The-Counter Market Are Determined By:, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Stock Prices In The Over-The-Counter Market Are Determined By: was compiled by me and my team from many sources. If you find the article Stock Prices In The Over-The-Counter Market Are Determined By: helpful to you, please support the team Like or Share!

Rate Articles Stock Prices In The Over-The-Counter Market Are Determined By:

Rate: 4-5 stars
Ratings: 1157
Views: 65209768

Search keywords Stock Prices In The Over-The-Counter Market Are Determined By:

Stock Prices In The Over-The-Counter Market Are Determined By:
way Stock Prices In The Over-The-Counter Market Are Determined By:
tutorial Stock Prices In The Over-The-Counter Market Are Determined By:
Stock Prices In The Over-The-Counter Market Are Determined By: free
#Binary #Forex #Options #Trading #Trade #Currency #Pairs

Source: https://ezinearticles.com/?Binary-Forex-Options-Trading—How-to-Trade-on-Currency-Pairs&id=4243085

Related Posts

default-image-feature

Stock Market Hit All Time High On Friday Congratulations U.S The A-Z of Exhibiting Overseas

You are searching about Stock Market Hit All Time High On Friday Congratulations U.S, today we will share with you article about Stock Market Hit All Time…

default-image-feature

Small-Cap Stocks Are Expected To Out-Perform Large-Cap Stocks Why You Need a Covert Audio/Video Spy Camera in Today’s Workplace

You are searching about Small-Cap Stocks Are Expected To Out-Perform Large-Cap Stocks, today we will share with you article about Small-Cap Stocks Are Expected To Out-Perform Large-Cap…

default-image-feature

Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In Get Insight Knowledge on How to Earn Profit From Nifty Tips

You are searching about Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In, today we will share with you article about Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In was…

default-image-feature

Should You Sell Stock Funds That Are Up Oilr.Bond Funds Project Shakti – A Win Win Situation

You are searching about Should You Sell Stock Funds That Are Up Oilr.Bond Funds, today we will share with you article about Should You Sell Stock Funds…

default-image-feature

Qualified Small-Business Stock That You Held More Than Five Years Charging or Issues Systems in Special Libraries in Sierra Leone

You are searching about Qualified Small-Business Stock That You Held More Than Five Years, today we will share with you article about Qualified Small-Business Stock That You…

default-image-feature

Q15 How Many Units Are In Classified As On-Order Stock Security and Organized Crime

You are searching about Q15 How Many Units Are In Classified As On-Order Stock, today we will share with you article about Q15 How Many Units Are…