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Binary options if there is no money. Using a Strategy for Trading Binary Options

Binary Options Trading Risk Management Unifunds would like to point out that there are a number of differently structured binary options trades. While all the trades have the basic definition of binary options if there is no money in common, each differs from one another based on its elements.

Firstly, there option for 60 seconds two main types of binary options, which are the cash-or-nothing binary option and the asset-or-nothing binary option.

The cash-or-nothing binary option either pays the trader a fixed amount of payout if the option expire in-the-money, or nothing at all. The asset-or-nothing, on the other hand, pays the value of the underlying security, meaning the payment equals the full asset value. Aside from these two types of binary options, there are also different trading types of binary options, as we will explain below. Call and Put Binary Option The Call and Put is the most common, and popular, of all the binary options, even in Unifunds Binary Options Trading platform, as they are the easiest to understand and trade.

This particular binary option is known by many other names, such as Up and Down binary option and High and Low binary option. Call and Put options are commonly grouped under cash-or-nothing binary options, as at the expiry time, the trader will either receive a payout or nothing.

A trader will place a Call option when they believe that the asset will increase in price, similar to placing a High or Up option. If the underlying asset expires at a higher price than the strike price, the trader will gain a profit. As for the Put option, it predicts that the value of the asset will be lower than its strike price at the end of the trading period, and is the same as the Down and Low options. At the end of the trade, the trader will receive a payout if the asset decreases in price compared to its strike price.

The only difference is that the option has an expiry time of 1 minute, which is preferred by those who enjoy dynamic trading and immediate results.

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The 60 Seconds option is not suitable for all traders, however, and requires the ability to spot potential trading opportunities the moment they occur. The advantage is, of course, generating fast profit by trading very small price movements but it should be noted that traders could also make losses just as quickly. Unifunds believes that another advantage of the short time frame is psychological, whereby some traders tend to second-guess their decisions in trades with longer time frames.

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The Touch option predicts if an asset will touch a pre-determined level within any time period by the time of expiration. If the strike price is reached, the option will close without needing to wait for the expiry time. Contrary to other binary types, Touch option can be purchased on the weekends, when the markets are closed.

Traders choose Touch Up if they predict that the pre-determined level will be higher than the current level of the asset.

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They choose Touch Down if they believe that the pre-determined strike price will be lower than the current price. Touch Down Example: Using the same case as above, a trader believes that gold will drop in price sometime in the next hour.

Unifunds would like to emphasise that the Touch option requires significant research, analysis and knowledge of the asset.

Although there is a chance of high returns, the markets are hard to predict so extensive research and preparation are key in order to make a profitable prediction. There are several versions of the Touch option with the most common being the One Touch trade, Double Touch trade and the No Touch trade.

Common Misconceptions About Binary Options

One Touch Option The goal of One Touch binary option is for the trader to determine whether the price of an underlying asset will come, or touch, within a pre-determined range at the set expiry time. The only difference is that there are two predetermined values that must be reached before the trade expires. For this option, a trader predicts two different levels, both in opposite directions. A payout is given when either level is reached.

After analysing the pair, a trader expects the price will change in the upcoming week but is unsure of the direction it will take.

He then predicts that the change will be either above 1.

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If the value crosses either 1. If the price remains between the two levels, he will lose his investment. This strategy is recommended for traders with fundamental and technical analysis skills.

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It is also highly effective when the market is volatile and the price does not remain unstable. No Touch Option No Touch binary options math enables traders to predict whether the price of an asset will stay above or below a certain level throughout the length of the contract.

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Unlike the Touch option, the aim here is to not reach or touch the specified level. No Touch option is commonly purchase when the market is expected to consolidate in a narrow trading binary options if there is no money.

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Basically, traders purchasing this option are betting that the trades will be essentially quiet. Boundary Binary Option Unifunds would like to bring your attention to yet another popular type of binary options. If the market is becoming volatile, it is best for traders to trade outside the boundaries.

General risk warning: Trading in Binary Options is highly speculative and carries a high level of risk, which can result in the loss of part or all of your funds.

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As such, trading Binary Options may not be appropriate or suitable for all traders. You are strongly advised not to speculate with capital that you cannot afford to lose. Before deciding to trade, you should be aware of all the risks associated with Binary Options trading and seek professional advice from an independent and licensed financial advisor.

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