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Binary Options Exchange

kostaszekostasze Posts: 227 ✭✭
edited July 2013 in Binary Options Strategy
Hi mates,
many new traders have problems to understand how to trade in a binary options exchange!It's very easy!
-Offshore brokers
In offshore brokers you have to choose your asset (EURUSD for example) then you have to choose your expiry (5 minutes for example) and finally your investment amount, let's say 50$ and you have to wait until the expiry.

- BO Exchange
for the same asset with the same expiry you have to choose "EURUSD fall or rise 5 minutes"

you buy the contract if you believe that the price will go up and sell the contract if not

the price of the contract opens at 50$ so if you buy the contracy in the beginning of the 5 minutes you have to pay about 50$(maybe some mpre like 55$ if the price will move quickly)

If your contract will be ITM your profit is: 100- (the price you bought the contract. 50$ in this case) = 50$
If you contract will be OTM: 0-(the price you bought the contract. 50$ in this case) = -50$
This means a payout near 100%

Furthermore,
you can sell your contract before the expiry with a profit or a loss
you can buy many contracts
you can buy a contract after the beginning of 5 minutes
EXAMPLE:
Asset: EURUSD rise 5 minutes
Strike Price(the opening price of the contract in the beginning og the 5 minutes): 1.29700
After 3 minutes EURUSD is at 1.29730 ,for example
2 minures left for the expiry and you want to buy 5 contracts for theese 2 minutes
Because the contract is very possible to be ITM(it's already 30 pippetes above the strike price) you have to pay more than 50$ something like 70$.So,
ITM: 100-70=30 * 5 contracts= 150$
OTM: 0-70=-70 * 5 contracts= -350$

Feel free to ask me anything you want or you can find more information in my articles about exchanges!

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