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If you're looking for a less complicated way to trade the forex, then you may want to consider using binary options. These are one of the newest trends to trade on the markets, and they have the advantage of being terribly simple to understand. As you may know, forex is a huge market that trades 24 hours a day, 5 days every week. That is one of the reasons it's so popular with traders who could be working a regular job.
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One more reason that people are attracted to trading forex currency exchange is that it permits great leverage of your investment so you aren't restricted to profiting by just the few per cent the price may change. Binary options are simple to understand. They can be traded on many different types of monetary security, including currency pairs. The price varies depending on the value and time the binary option expires, and the nominal payout is typically $100.
The price you need to pay for a binary option reflects the market's idea of your chance of winning. One key for profiting from binary options is that the payout isn't linear, that is you don't get more the further the price runs. You make the same profit when the underlying security just edges into a win by one point or one cent as you do when the security romps over the line.
The binary option is in essence nothing less than a bet on which way the cost of a stock, an index, or a foreign currency will move. You can select up or down and place your bet. When the option date and time is reached, you will see if you were wrong or right. If you were incorrect you continue to get 5% at www.eztrader.com, and if you were right you win a fixed amount, maybe $100 or $1000 depending on the contract and the original investment.
Binary option trading is such a recent invention in the markets, that many traders don't realize just how they could use it to good effect. The option is either above or below the cost of a financial security at the expiration date and time, and you either get paid or you don't. If you've a binary call option and the price at expiration is more than your strike price, then you profit by a defined amount, typically $100 or $1000 depending on the market and your first investment. If the price is less, you get nothing, unless you trade with eztrader, in which case you're still left with 5%.
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How do I start?
1. Choose an option to trade from the list of available options
2. Choose the type of trade: either or . Call means that you estimate the price at the time of expiration will be higher than the current price. Put means that you estimate it will be lower.
3. Enter the amount you would like to trade. You can change the trade type from to or vice-versa even after entering an amount.
4. Click "Trade" to execute your trade.
