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Options Trading: How to guide
Not many investors know that options trading can offer a host of wealth benefits as it can also help you to hedge your risk. These options are also referred to as digital options or binary options. For beginners who are new into trading, here is an options trading tips that will help them in their process of trading in options

The concept of options trading

An option is basically a contract in which the person who purchases the option gets the right but not the obligation to buy or sell the underlying asset at a fixed rate on or before a stipulated period. The price at which you purchase the options is known as the strike price where as the stipulated period or date until which you hold the options is known as the expiration date. The underlying asset is nothing but the corresponding stock. The digital options can be classified into two types: put options and call options.

How to start options trading?

To start options trading you will first have to open a trading account with a brokerage firm and then place options trades through a broker who will execute the trade on your behalf.

Strategies to use in options trading

The strategies of options trading can be divided into bullish market strategies, neutral trading strategies, bearish market strategies and special ones. Before selecting any particular binary options strategy it is important for you to know everything about that particular strategy. You can always view our helpful page on how to use and operate binary options. The following are some of the strategies that you can use while trading options:

  • One of the best strategies to use in options trading is call-buying when the market is bullish. This type of strategy helps you to limit your losses as you need to pay only the premium (the total cost of option).
  • The other options trading strategy that you can use is to purchase vertical bull call spreads. These are nothing but the call options that have higher strike price and then sell the vertical put spreads which include buying and selling puts of lower strike price.
  • The other digital options trading strategy that you can use is put-buying of options that are undervalued but greater volatility in the bullish market. Just similar to the bullish option trading strategy, here also you will lose only the premium.
  • It is better to use a neutral bearish position and sell a call in case you are investing in an option which is overvalued and the market is bearish or going steady. Here, you can make profits that are equal to your premium.
  • While trading in neutral markets you can use options trading strategies such as the strangle which involves using the time value to the maximum or the calendar strategy wherein you buy options in the near month and sell in the far months assuming that the near month value of the option will decline quickly.

Hope this digital options trading how to guide have helped you to gain a better understanding of options trading. For beginners, it is advisable that you take the necessary help of a financial advisory before investing. Binary Options Trading Sites website offers latest online brokers for easy options trading.

Most Popular Binary Options Brokers For 2017

To find news on the latest and greatest binary options brokers online, our website is the right stop for you. After testing and reviewing majority of online binary options brokers, our editors conducted a survey and created a list of the current top 3 binary options brokers and also a quick review on each of them.
Our number one broker enables the visitors to get the latest information on learning the art of trade and profit. You will also be able to locate the best brokers and get up to date information that is crucial to effective trading in binary options.

The number one spot goes to BetOnline Financials. With their minimum deposit of $100 and a further 100% bonus on deposit bonuses, the broker definitely deserves the top spot. Currently they have an online promotion where traders can potentially triple their earnings along with a bunch of other free bonuses and giveaways. It was a tough choice but close contenders for second and third place were Plus500 and 24Options, respectively. Both brokers have a minimum deposit requirement of $100 and have a $100,000 free demo available so you can try investing some fake money before you start investing your real money. Check out the rest of our reviews on the top three binary options brokers so you can get excellent value for money. Binary options trading sites does not limit itself to broker reviews as they also provide information on binary trading tactics, demo accounts, plus a whole host of other tips and tricks to give you the edge in trading in binary options. Upon signing up with your favorite online broker, you will receive the regular access to a free newsletter.

The newsletter is packed with information such as market indicators to help you be more profitable and get a boost in your investment portfolio. You will also gain access to even more value with exclusive bonuses and offers.

It does not stop there as the value just keeps rolling in. You will also have access to signals and binary forecasts to help you improve your profit margins with every trade. With a track record in providing reliable predictions, this website has become the go to location on the web for binary market analysts, investors, and brokers on a global scale.

Our website is dedicated to providing up to date general information on binary options and brokers. With invaluable tips and helpful suggestions covering the binary market, brokers and traders and investors gain the upper hand by learning from the various materials we have made available in article form.

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