It’s not difficult to find official tecademic review understand binary options. It’s a type of speculation where the price of the speculated item is represented by a number between 0 and 100. If you predict and event successfully, then a settlement is made at 100. If not, the settlement is finalized at 0. However, the price of the event is marked by binary options brokers. If you believe an event will occur, the call, or buying event, is made, otherwise, the put, or selling event, is made.
If you anticipate that McDonald’s stock will close above its current $80.52 price within an hour, then you should invest in a binary call option for $100. If your prediction is correct, the payout will be 70 percent or more, so you would receive $170 or more. If the McDonald’s stock does not go above the current stock price, then you will lose 85 percent of your TecAdemics investment, and will only get $15.
This is the key benefit of a binary options trade. When you place your trade you only risk losing a percentage of your investment and have the opportunity to earn a profit. And, you know the exact amount of the profit when you make the trade.
Important Concepts in Binary Options Trading
In order to understand binary options trading you must learn the following concepts:
Price Barrier: This is official tecademic review the strike price or the price at which the trader can buy or sell the underlying asset.
Expiration Date: This is the date and time when the option closes or the contract expires.
Types of Binary Options
Here are some of the different types of binary options trades available. While they bear the same basic principle, there are some slight variations.
This type of TecAdemics trade involves choose a call or put option. If the trader believes the stock will end up above the strike price, then they choose a “call” option. If they predict the stock price will decrease at the time of expiration, then he should purchase a “put” option. This type of trading is also known as a Rise/Fall trade on some trading platforms.
This type of trading is also known as a boundary or tunnel trade. In this type of binary options trade, the trader sets the price in order to trade the price breakouts and consolidations.
The trader then buys an option, predicting if the price will abide by the boundary, tunnel or price range. This is an “IN”. If the price goes outside of the boundary or tunnel range, this is an “OUT”. Nevertheless, use of pivot points will help in making this type of TecAdemics binary options trading.
Touch/No Touch Options
In this type of trade, predictions are made about whether the anticipated price will touch the price barrier. In touch binary options trade, the trader buys an option with the belief that the market price will not reach the target price within the expiration period. If this is correct, a profit is made. If not, the trader will end up with a loss.
The No Touch of official tecademic review binary options trade is the opposite of the touch binary trade. In this type of trade, traders speculate that the underlying asset’s target price will not reach the market price. If the trader is successful in their prediction, then they will make a profit.