How Financial Fixed Odds Are the Market Fix More Traders Need
How Financial Fixed Odds Are the Market Fix More Traders Need
Are you a newcomer to the world of market trading who is over-whelmed by the sheer scale of choice of trading strategies? Are you somewhat disturbed by the number of potential factors which could determine your ability to succeed or lose all of your hard-earned money?
If so, then read on, we have some interesting news for you about some recent changes in the way savvy market traders are investing their money and achieving consistent and a highly profitable return on investment.
A growing market is 'binary trading' which is offering the much needed and increasingly sought after port in the global economic storm. More traders are becoming attracted to this lesser known trading strategy for two reasons: predictability of outcomes and simplicity of method.
There are no stop loss calculations or fundamental market analysis required here, although obviously, the more you learn about how markets operate, the greater your returns will be.
So how does binary betting (or binary options if you are in the U.S) work?
Simply put, a binary trade offers financial fixed odds betting, whereby you will know at the point of placing your trade what your outcomes will be. Either you will win or lose - the system is similar to betting in horse-racing.
If you lose, the worst that happens is that your loss is one you can better manage. There are NO limitless losses here, which means your trading account is better protected and easier to manage. You can, therefore be more in control of your levels of risk-return ratios.
If you win, then it works as follows. First off, you will know how much you will win as you place your binary bet. So, for instance, let's say you wish to trade for one day and you think that the market on this day is going to rise overall.
Then first open a binary bet and you will be quoted a price of e.g. 48 points for the UK market to close higher for that day and you decide to risk e.g. ?5 per point.
As binary bets work on a price of 0 - 100 this means that if you win, you will earn 52 x ?5; i.e. ?260. This figure is the 100 point maximum - 48 (cost of the bet) x the amount we mentioned, are prepared to stake, that being ?5.
Had the market gone against you, you would know in advance that your loss would be exactly your stake x quoted points; i.e. 48 x?5... ?240.
The relative safety and predictability of financial fixed odds is not available with products such as more complex spread betting and futures trading strategies. Nevertheless, these riskier trades continue to be promoted to newbie traders by brokers less concerned with the individual needs and resources of newcomers to market trading.
So if you are a new trader still learning the ropes, forget about fears over unlimited losses or market complexity and get started in trading with the assurance that you CAN have control over your trading account. Simplify your trading strategy whilst you are still learning and consolidate both your wins and boost your confidence as you build your skills and knowledge in market trading.
To find out more about how you can safely profit from this growing market trading trend, contact Elm Trader, the specialists in binary trading.
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