Trading binary options (BOs) has not yet caught on with the trading community. Many traders still don’t know much about binary options. Yet, there are traders around the world who are silently making thousands of dollars day trading binary options contracts. Infact, some of the day traders have switched over to day trading binary options totally. So, what makes BOs so powerful? But first let’s discuss what are BOs and what makes them special?
What Are Binary Options And How They Get Traded?
Binary options are options contracts that are also known as digital options. These contracts let you bet on the direction of the market in the next half an hour, next hour, next few hours, next day or the next few days. If you win the bet, you get a payoff of $100 per contract and if you lose the contract you get $0 as the payoff.
Let’s take a hypothetical example for the purpose of illustration. Suppose, the EURUSD pair is trading right now at 1.3246. You are a good technical trader. You are quite sure this rate could move more than 100 pips and go above 1.3356 after five days. One way is to enter into a swing trade. The other is to buy a five day binary options contract on EURUSD with expiry at 1.3356 by paying a permium of $10. If at the end of five days, the rate indeed is above 1.3356, let’s say it is 1.3357, you win $100 per contract. Your net profit in this case would be $90 per contract. And if the rate ends up below 1.3356, let’s say it ends up at 1.3254, you get nothing rather lose your investment of $10.
Now, suppose instead of 1 contract, you had bought 20 contracts. It would have costed you $200 and in case you had made the correct bet, you would have won $2,000 making a net profit of $1980 in five days. This would have given you a return of 900%. But you can also trade half hourly BOs, hourly BOs and daily BOs. The above example was just meant for illustrative purposes.
Binary Options Vs Spot Forex
In the above simple example, you might have observed that your investment was only $10. Now, it could be more. It depends on the BO contract that you are purchasing and can be as high as $50 per contract or even more. This price depends on how much close the contract is to expiry and whether it is in the money or out of money. Whatever, your risk while trading BOs is this investment was only $10 if you trade one contract. It is quantified from the very start. This was the total amount you could have lost if you had purchased only one contract and lost. And incase, you had purchased 20 contracts, your risk was $200.The reward is also known from the very start. It is $100 per contract in case you win!
Now, compare this to spot forex trading. OK, you have a defined risk but your reward is hypothetical from the start and all the time you will be managing your trade moving the stop loss positions and looking when to get out of the trade while still profitable. But in BO trading, once you place the bet, that’s it! No more monitoring of the market! Either you win or you lose! In the same manner, BOs are far simpler to trade as compared to ordinary plain vanilla options contract. Now, you can trade BOs on currencies, stocks, commodities, indices, gold, oil and metals.
Let’s compare this ROI with that given by penny stocks! Yes, with penny stocks it is possible to make gains like 1,000%, 3,000% or even 10,000% but that happens not often. And again just like spot forex, you have to manage your penny stock trade. On the other hand, with BOs, you can make gains like 71-81% after every hour over and over again. Now, if you can repeat your performance after every hour imagine making 81% return every hour for the next four hours. How much total return you would make in 1 day if you traded BOs for only 4 hours daily and won the market bet every time? You would be making 320% gain daily. And once you place the bet, you don’t have to do any monitoring with BOs.
Binary Options Trading Systems
By now you must have also realized this fact that binary options can be far more easier to trade as compared to other financial instruments or contract. What you might have also observed that you need a trading system that can give you with high probability the correct market direction. Without such a high probability trading system at your disposal you are doomed as a binary options trader. With a trading system that give low probability signals, you will be losing most of the time. But if you have a high probability BOs trading system that has an accuracy of say 90%, you will be winning these bets 9 out of 10 times.
Developing a high probability trading system is not an easy task. It requires a lot of trading experience. You need to test it a lot. Meet Chris Kunnundro. He has been trading BOs for a number of years now. He has infact developed a number of BOs Trading Systems. Some of them are quite powerful and can give explosive returns. Another good thing about these Systems are they are easy to trade and have been developed specifically for a particular market. Let’s take a look at a few of them!
STRIKER9 PRO Binary Options Trading System
STRIKER9 PRO is a full fledged BOs System that has been developed by Chris to trade specifically the BOs on Apple and Google Stocks. Now, AAPL is the ticker symbol for Apple and GOOG is the ticker symbol for Google. Both these stocks move well daily meaning show both show good daily volatility. STRIKER9 PRO profits from this daily volatility in AAPL and GOOG. It is a powerful system that is like a business in a box and has the mind blowing potential of making upto $201K per month. You will need to team up with a few partners to trade with this system. But there is a STRIKER9 Light Version also available that you can try first to see how easy this system is to trade. If satisfied, you can move on to the STRIKER9 PRO version.
KRAKEN, U7 and OMNI11 Forex Binary Options Systems
As said above, trading forex BOs can be far easier than trading spot forex. But what you need is a high probability trading system. You can take a detailed look at each one of these Forex Binary Options Systems developed by Chris Kunnundro. OMNI11 is for serious traders. KRAKEN is for beginner traders who have never traded BOs before. So, if you are a beginner trader, you might want to take a look at KRAKEN System! Don’t miss this chance to make whopping gains like 71% every hour with Binary Options! Good Luck!