Binary Options Trading Art by Traders

A real binary options trader made this while awaiting his positions to clear

Binary Options Trading Art


Artwork that was created while trading binary options online

Download this binary art from these sites:

• Download this art of Doppler effected ovals of binary trading from Panoramio
• Get the Doppler Effect of Binary Options from Photobucket
• Dopper effect of trading binary options on Red Bubble

Binary options trading is legal, but this haircut should not be.

Art of a 70's style funkadelic binary options trader. Check out the hair style:

Binary Trading is WAY easier now than it might have been in the 1970's

You can download this cartoon of a 1970's style binary options trader at the following links:

• 1970's style binary options trader on Flickr
• Binary Options Trader with full 70's style hair and mustache on Panoramio
• Binary trader with old-school walkie talkie on Red Bubble
• Guy trading binary options on 70's size walkie talkie on Twitpic
• Photobucket hosted pic of 70's style binary options trader 
• Or you can find this image on the binary options trading blog

Real life tips - hedging binary options trades for profit

Get you paws on as much as you can

Top Ten Super-Tips for using the Black-Scholes Valuation formula to gain large profits with online binary options trading:

These tips are called "super-tips" as the regular tips we give are designed for novice traders. These tips are designed for more advanced users who are willing to forego some excitement and risk in exchange for dull, boring, and more consistent profits.

1. Trade only in small amounts till you have a much stronger grasp on that specific commodity, stock or indice.
2. Utilize "closable" options to hedge the rise so that you can make very quick 20% to 40% gains rather than drawn out 85% gains that carry a risk of 100% loss.
3. Be technical analytical and review the graphs for patterns and predictability. Only trade in graphs of options you feel comoftable predicting. 
4. Better to not trade for a half hour than loose durring that half hour.
5. Don't hedge your risk by trading in opposing option. The profit of 85% comes at a risk of 100%, so hedging like that will result in an across-the-board 15% loss.
6. Remember: Its important to avoid losses as much as it is to achieve gains.
7. Don't let losses or gains effect you overall strategy. Emotion are your enemy in this game. 
8. With currency related binary trade, compare different currencies to narrow down which ones are actually falling and which ones are only relativity falling
9. Avoid trading binary options at the beginning of market open unless specific events in the news provide a window of predictability.
10. Learn from your mistakes. Binary Options Trading is an aquired skill. Don't be afraid to make mistakes, but do avoid repeating them.

 We hope you've enjoyed these tips. Please feel free to leave comments or questions. These tips are based on Trading Binary Options on OptionsClick.com - not sure about any other sites.

Great binary options trading tips - low-risk-40% return rather than high risk 85%

Trading binary options online can be a tricky business. You ability to extrapolate data from graphs and charts is so very critical for the success of your trading.

A common feeling is that of "get rich RIGHT AWAY" which you should avoid at all costs (no pun intended) - The best thing to do for making money with binary options trading is to start an account with a small amount of money and learn how to trade with small amounts of $10 or $20 and get a strong percentage return. Once you are comfortable with you prediction ability of the market, you can increase the amount.

Check out this video on how to make small gains quickly, rather than long drawn out riskier larger gains:

 Video of Binary Options Trader Making $5 in 5minutes

Special thanks to ZEN OPTIONS for providing this video on binary trading to us

Tips for trading binary options online:

Think before you click. Trade Binary Options Smart

Tips for binary options trading:

1. Trade online, only use binary options trading platforms that have real-time updates and don't charge a commission.
2. Use sites that offer binary trading with the possibility of closing your position before it expires and still making a solid return - utilize this capability to hedge your risk and make lost of small, profitable trades.
3. Do not start making large trades when you are below your starting point with the hopes of re-couping your losses.
4. Do not trade if your mindset is not that of a small-gains and reserved approach.
5. If you loose several trades in a row, then stop trading for a few hours. Do not try and regain your losses quickly.
6. Analyze graphs and only trade on positions you have a clear picture of. Utilize the various forms of options for different market behaviors
7. Don't be afraid to take chances, but don't take the chances with large wagers.
8. Practice reading graphs, review the trades that end in loss so that you can learn from your mistakes.
9. Keep up to date on the news, especially for political events that effect the price of oil and the stock markets.
10. Learn the graphs of the financial data and learn to differentiate between a correction and a trend.

Don't be left in the cold. Learn before you trade

Obviously these tips alone are not going to enable you to suddenly become a wealthy binary options trader. But by learning the trends and patterns that keep winning overall, you can be in a better position than starting out cold. Educate yourself about financial betting and general binary options trading and enable yourself to succeed in the volatile marketplace. Don't be discouraged if you have a few losses, the main thing is to learn how to read the market and apply it when it counts.








binary options trading tips - source

List of Top Ten hilarious explanations of what are binary options:

Hysterical Binary Options Trader

List of Top-Ten Funniest Explanation of Binary Options

Binary options trading is the hottest thing since margin-investing and CDI's - except way more legitimate and totally legal. Not everyone is 100% sure what is a binary option or what it means to trade them. Below are the funniest explanation that we have gotten so far. Enjoy.





 

Top Ten Funniest Explanations of
What are Binary Options:
10) Stocks that perform magic by using confusing math.
9) Commodities that make you money when they loose money

8) Investment instrument that let you pry open the markets value
7) Piggy bank for those that have science degree in math.
6) It is the equivalent of Diet Coke for the investment community, all the fun and no calories.
5) It's that thing them investment-boys are doing these days.
4) I don't know, I can't even figure out how to use Facebook.
3) Is that trading stocks in Morse code?
2) Binary option is when a person trading stocks has to think like a computer.
1)Have no idea what it is, but sure have fun trading them.

Laughing Binary Options Trader

We'd like to thank this site for the top-ten list of funny explanations for What Are Binary Options

Pricing the Binary Options for trading in market.

Binary Option pricing is similar to some extent to vanilla option pricing in that is uses the basics of the Black Scholes pricing model to create a cash or nothing payout profile.  Binary options, or digitals options can also be priced as a asset or nothing type of payout, where the prices of the asset need to be valued prior to the pricing model evaluation.

A binary option has a predefined payoff. For most options the payoff

Binary Option pricing is similar to some extent to vanilla option pricing in that is uses the basics of the Black-Scholes pricing model to create a cash or nothing payout profile.  Binary options, or digitals options can also be priced as a asset or nothing type of payout, where the prices of the asset need to be valued prior to the pricing model evaluation.

A binary option has a predefined payoff. For most options the payoff of an option is unknown and is only known upon exercise of the option, which the payoff for a call option being the asset price on exercised less the strike price of the options. In contrast a digital option has the payoff defined when the option is issued.  For example, the payout is a specific cash value know prior to entering the transaction.

The payoff of a Digital option is preset value (cash amount -as in a Cash-or-Nothing option) or a unit of the underlying option (ie an Asset-or-Nothing option). For example a Cash-or-Nothing option on a stock would either payoff zero or a fixed cash at expiry, similar an Asset-or-Nothing option would either payoff zero or a fixed number of stocks.

In pricing a binary option, there are a number of variables that need to be used, similar to a vanilla options.  These variables include:

Market Price :

The market price of the underlying asset on the valuation date.  When evaluating an option in real-time, a trader would used the current underlying price to determine the current market price.  Traders could also use the closing price of the prior day to gauge an estimate of the market price.

Strike Price :

This is the price level at which the option holder has the right to buy or sell the underlying asset. It is the most straightforward input as it will always be given in the option contract.  In general, the market price in a binary option is also the strike price.  In a “above or below” option, the market price is the price that is used to determine the strike price.

Time to Maturity :

The time until the option expires and the holder is no longer entitled to exercise the option.  For binary options, this is usually the end of the day or the week, as well as a specific time in terms of hours.

Interest Rate :

The risk free interest rate for the period until the option expires. The risk free rate should typically be a zero coupon government bond yield.  For example the risk free rate for the US is current less than 25 basis points or very close to zero.  This factor will not change the value of a binary option since most are very short dated.

Volatility :

Albert Einstein Understood Binary Decision Making.

Volatility is probably the most important single input to any option pricing model. There are numerous methods for estimating volatility.
Historic volatility entails using historic price data for share price movements. A key issue is how far into the past to collect data from. A useful rule of thumb is to collect data from as far back as the options term. Historic volatility is often considered as flawed as it assumes the past will reflect the future – thus several forward-looking measures of volatility can be more powerful and accurate:
Historic Volatility is the volatility of an asset based on its past price movements. The volatility of the underlying asset for the option’s remaining life is a key input into most option pricing models, however this volatility is never in practice observable since it is based on future price movements which cannot be known. Thus, volatility must be forecast, and one method of forecast is to use the historic volatility of the asset which is calculated from its past price movements.
Typically, daily data is used and the standard deviation of the daily log of price movements is the volatility. If daily data is used then a daily volatility is the output from a calculation. For input into an option pricing model such as Black Scholes the annualized volatility is required.
Implied Volatility is the volatility implied by the market price of traded options. As the price is already known and the volatility (which is typically an input) is unknown the pricing model is reversed to determine the volatility. Other models such as ARCH, EWMA, GARCH use historic data and condition the data using factors such as mean reversion to achieve a more accurate volatility forecast.
Implied Volatility is the volatility derived from an option with a known price (or premium). If the price of an option is known, the other inputs (such as spot, strike, time etc) can be either taken from the option contract or market data sources, thus the only remaining unknown input – the volatility  can be solved for. The Black Scholes option pricing formula cannot be reversed to express volatility in terms of other inputs so an iterative approach is required by testing different volatilities.

Binary Code looks like this

Yield :

The average yield generated by the underlying asset for the life of the option. This can be either a dividend or the income generated by a commodity. It is often difficult to forecast the yield for the entire option life so the current yield of the asset is often used.

Conclusion

Binary options are generally priced in a way were the dealer or broker is taking a fee in the theoretical price of the option.  There are numerous tools that can be used to determine if the price of a binary option is relatively fair, and if your broker or dealer is given you a realistic market price.

NHS faces growing financial pressure, how it effect GBP

The NHS has an uncertain future. What does that have an effect on the Great British Pound (GBP) and other currency markets. Keep these

Sell, Sell Sell 10-4 Charlie

details in mind when trading currency or placing positions on when trading binary options online.  The main thing to remember is that the uncertainty means that it can rally one day, or dive the next, however, elements like the trading volume and speculation buying can help the stats go awry in regards to where the market really stands.
Here is the article, you can read it in full at this link    Thanks to Binary Options Blog for posting this and sharing.

Audit Commission finds NHS made £4.3bn of efficiency savings last year but financial challenges are increasing
Most NHS organisations have made good progress in cutting costs to reach the £20bn savings required of them, but they face growing financial pressure, according to the Audit Commission.
In its report on the 2010-11 financial accounts of primary care trusts (PCTs), NHS trusts and strategic health authorities, the commission says that, assuming there is no double counting, efficiency savings totalled £4.3bn for the year.
PCTs reported savings of £1.9bn and NHS trusts reported savings of £1.2bn. These figures are equival

Some common info on what are binary options:

Binary option (From Wikipedia)

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-styleoptions.
For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.
In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function.
Click here to read the full Wikipedia article on Binary Options




A binary option is a fixed return option because there are only 2 possible outcomes which are fully realized at the onset of the contract
A binary option is a contract which gives the buyer (known as the owner) the right, but not the obligation, to buy an underlying asset at a fixed price within a specified time frame.
The items being traded are known as underlying assets and they could be a range of products: currencies (e.g. USD/JPY), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100). The fixed price at which the owner buys or sells at, is known as the strike price.
When trading binary options, the buyer of the option chooses whether he thinks the underlying asset will hit the strike price by the selected expiry time – this could be at the end of the nearest hour or the end of the day, week or month.
The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.

Want to try and trade binary options on your own, visit http://optionsclick.com

Thank you to this source for the info on Binary Options

Federal Reservce makes promise to keep interest rates near zero

I came across this article today, I really wonder if the US Gov't will keep the interest rates "near zero" for the duration of time that they claim to do so, which is 2 years, and, if they go back on their word, what will that do to their rating?

WASHINGTON (Reuters) - The U.S. Federal Reserve, in an unprecedented move, said on Tuesday it will keep interemoney, markets, federal, reserve, standard, poor, downgradest rates near zero for at least two more years and is considering further action, bolstering battered stock markets.

The Fed's policysetting Federal Open Market Committee, in a 7-3 vote, overcame internal discord in the first triple dissent against a policy decision since 1992.
Investors were still unsure whether the Fed's even stronger promise to maintain rates at rock-bottom lows until mid-2013 would be enough to revive a flagging economic recovery.

But the decision sparked a rally in equities that pushed the Dow Jones industrial average up more than 400 points. Short-term Treasury yields fell to all-time lows. The gains came after a rout that stemmed from Standard & Poor's historic downgrade of U.S. credit quality last Friday.

 Click here to read the full article on Money Control

Thanks to this article for the source

Oil prices plunge, but motorists not getting much relief at pump

By ROD WALTON World Staff Writer
Published: 8/9/2011  2:26 AM
Last Modified: 8/9/2011  3:58 AM

Crude oil futures fell to their lowest level in nearly a year Monday, but Tulsa gasoline prices are still clinging to an average that was charged when a barrel cost close to $20 more.

"With markets the way they are, it's anybody's guess on what they're going to do," AAA-Oklahoma spokesman Danial Karnes said. "It's all over the board."

That board is making a steep downhill run at the moment. West Texas Intermediate crude oil for September delivery dropped $5.57 on Monday to settle at $81.31 per barrel on the New York Mercantile Exchange.

The closing crude price is the lowest since it settled at $80.05 on Aug. 31, 2010. The one-year high for WTI was $114.83 per barrel on April 29.

Tulsa retail gasoline, meanwhile, is not falling by the same leaps and bounds. The Tulsa average reported by AAA is $3.44 per gallon, but it was closer to $2.50 when domestic crude oil was last around $80.

"Gas prices aren't always logical," Karnes said. "But logic tells us if oil continues to fall, then gas prices should continue to fall as well."

The price at many QuikTrip stations in Tulsa was $3.39 on Monday afternoon. The QuikTrip price at the end of last August - the last time crude oil was anywhere near this low - was $2.46 per gallon. 

click here to read the full article 

Special thanks Binary Trading Tips for finding this article

Casino vs binary trading

Are binary options like gambling?

 

I have heard several times from people that when you are buying and selling Binary Options, your are basically gambling. While this may be the case for some people who have addiction issues, they are both quite different. 

Casino games are based on luck and binary trading is based on real market conditions. This is not to say that casino's don't also involve skill or that binary trading doesn't experience luck, but the basis for the trades and exchanges of the two are very different. 

The thing is that casino games are designed for users to win in order to keep them entertained and binary trading are based on which ever direction the market swings, So not sure which one is better.

Got this article from this source