- What is MT4 Binary Options Trading?
- Example of Binary Options Trading
- Why Trading Binary Options is popular?
- “Trade the Trend” on Binary Options
Also called digital options or all-or-nothing options.
Binary Options are contracts that are able to give only two potential outcomes, the asset prices with either rise or fall.
As such, they are binary in nature.
What is MT4 Binary Options Trading?
Binary Options represents one of the fastest growing markets in the world with traders who are looking to capitalize on short-term market moves.
A binary option is a financial instrument in which the payoff can take only two possible outcomes, either a fixed payout or nothing at all.
Traders choose the direction of a given instrument by using either an “UP” trade or “DOWN” trade within your preferred time period.
Binary Options offer a very simple, direct way of trading on the various instruments, where the payoff is a fixed amount and so is the loss.
Example of Binary Options Trading
EURUSD is currently trading at 1.1000.
A trader who thinks that the EUR/USD price will close at or above 1.1000 at expiration would place an UP trade based on their analysis.
If a trader thinks that the EUR/USD price will close below 1.1000 at expiration, the trader will place a DOWN trade.
If the trade results in a WIN, the trader will receive a fixed payout that is displayed before the trade is initiated.
If the trade results in a LOSS, the trader loses their initial investment amount.
Why Trading Binary Options is popular?
- Defined Risk
You cannot lose more than the amount you risk per trade. This is unlike other investments where you can lose substantially more than your original investment.
- Low collateral required to trade
Trade with as little as $1 per trade.
- Opportunities in volatile and flat markets
Substantial profit potential with small or large moves in the market.
- Multiple daily trading opportunities
With shorter term expiry’s multiple trading opportunities exist very day.
- Full functionality of MT4
Investors can still trade Forex, run custom indicators and EAs on binary option charts.
Simply chose the instrument, investment amount, expiry and either Up or Down. No need to manage the risk associated with an open position.
“Trade the Trend” on Binary Options
The Binary Options Roller enables you to “trade the trend” by open trades in succession based on the parameters you set.
This Roller order help traders capture enhanced profits from the longer, more accurate expiration time-frames.
- Identify a trend in a market
- Set the trade parameters – Investment, Expiry and Direction
- Trades will be placed with the auto-rolling feature
- Built-in risk management tools such as “take profit” and “stop loss” levels
- Trader can “Stop” the Roller at any time from automatically opening new positions