How Financial Fixed Odds Are the Market Fix More Traders Need
How Financial Fixed Odds Are the Market Fix More Traders Need
If you are new to financial trading then you maybe a little overwhelmed by the enormous availability of trading systems and services 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?
Creating consistent profits over time is what every traders aims for. The new ways which we discuss in this article show how this can be achieved.
A growing market is 'binary trading' which is offering the much needed and increasingly sought after port in the global economic storm. Knowing your maximum loss from the outset of every trade is a major reason why financial fixed odds are becoming ever more popular.
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. It really is simple with a win or loss scenario similar to horse race betting
If you lose, the worst that happens is that your loss is one you can better manage. Your trading account wont have to take that big hit that many futures and spread betting traders often take as any loss is known from the outset. The control you have when trading with financial fixed odds products like binary bets / binary options is a welcome relief to those coming from derivative style products.
If you win, then it works as follows. First off, you will know how much you will win as you place your binary bet. As an example we will say that we think the market will closer higher than the close yesterday.
Then first open a binary bet and you will be quoted a price of e.g. 48 points for the US 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
elmtrader , the specialists in binary trading.
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