If you are looking for an exciting and rewarding alternative to stock trading, consider adding Forex binary options to your trade portfolio. These little cuties offer plenty of action: hourly expirations with all-or-none payoffs. You can trade binaries on your own, or you can put SlickTrade in your corner. They offer a wealth of information and tools, but most importantly, they give you access to their own trading desk, allowing you to literally “trade like a pro!”
Binary Forex Options
A binary options trade is similar to playing red or black on the roulette table, except that if you’re good, you have much better odds. In a Forex binary option trade, you pick a currency pair, an expiration time and a strike price. If you buy the option and it expires at or above the strike, you win a fixed payout — usually $100 per contract. Conversely, you win if you sell a binary option that closes below the strike. The relationship between the current price, the strike price and the time until expiration helps determine the opening price for the option. You’ll know your potential gain or loss up front, and you can bail out before expiration if you wish. By the way, while this article is focusing on Forex options, you can also trade binaries for stock indexes, commodities, even economic announcements like the Fed Funds rate.
So What’s So Good About Binary Options?
Glad you asked:
- Complete knowledge of maximum gain or loss, so risk is capped
- Trades require tiny amounts of collateral — think leverage!
- Expirations to fit your timetable: hourly, daily and weekly
- No need for stop orders or to fear being stopped out
- Great action in volatile and flat markets — keeps the adrenaline flowing
How About an Example?
Sure. Suppose at 1 p.m., the USD/JPY is bid at 108.075. You think the yen is going to strengthen in the next hour, so you sell a dozen contracts with a strike of 108.060 for 2 p.m. expiration. The value of each pip (percentage in point, a unit of change) is $1. The opening price is $56 per contract.
- Winning Scenario: USD/JPY closes below 108.060 at 2 p.m., which means it has a zero settlement price. Your profit is $56 x 12 contracts x $1/pip, or $672.
- Losing Scenario: USD/JPY closes above 108.060 at 2 p.m., which means it has a settlement price of $100. Your loss is ($100 – $56) x 12 contracts x $1/pip, or $528.
Note that fees apply. In this trade, figure $9 in and $9 out.
Sounds Too Complicated?
You don’t have to be an expert, just follow the trading action of the experts at SlickTrade. Moms, grandmas, widows, orphans, hippies named Krystal… anybody can do it. SlickTrade provides you with powerful software, educational materials and tools to help you follow the pros as they trade real money in real accounts. In this past October, the SlickTraders racked up an impressive 93 percent win rate. Right now, you can get into the sweet SlickTrade binary action for only $97, a $200 discount. With so little to lose and so much to gain, you can’t afford to wait. It’s as simple as that.
