subject: Great strategy to earn lots of cash from binary options [print this page] Great strategy to earn lots of cash from binary options
There are lots of benefits to binary option traders as binary option trading has a whole lot of trading offers with very good return on investment (ROI). Opening an account with a binary option broker is one thing and having a good system in determining the direction of the trend is another. If you are new to binary options or if you have been trading then you would need to have a very good strategy.I would briefly show you in this article,a simple strategy to trade and double your profits in quick time. If you are a newbie in binary options, you can get a comprehensive training by WINOPTIONS when you open an account with them.
The method of trading I would be highlighting has a whole lot to do with hedging. Hedging is simply a way of placing opposite trades, like buying and selling a particular currency at a certain time. Lets take a look at the index NASDAQ. If for instance, you place a CALL option on NASDAQ worth $200 with a deadline of 12 hours. If the value of NASDAQ was 2560 at the time of purchase of the index and it moves 50 points(2610) in your favor after certain hours like say 4 hours, you would then hedge the trade with a PUT option at the 2560 price and set the deadline at the same time as the time of the CALL option initially placed. After the Put option is purchased, you have two possible outcomes.
1. Both options would win you profits if the price of NASDAQ ends between 2560 and 2610 at the expiry time. 2. You could also have one winning option and a loosing option meaning you have lost just a minute percentage of investment if the price of NASDAQ at the time of expiry is below 2560 or goes higher than 2610.
In calculation from the $400 option ( CALL + PUT) placed, If you won the option, you could be making about 81% if you are using a good binary option broker like WINOPTIONS and if both options does not go in your favour, you could loose only 10%.This is a very good way to rake in cash in binary options. Note, this system only works well if you have a trade that is successful already.
