There are three main trading methods for binary options.
First of all, it is HIGH / LOW that is a simple trading method of the alternative, which only predicts in which direction the rate in time goes. Does this compare the rate at the start and the rate at the end to go up or down? It is a simple and clear deal that simply predicts that. If the closing rate is moving in the direction you have bet, the bet will be multiplied by a certain factor (depending on the company) and the amount will be returned. If you go in a different direction than what you expected, your bet will be forfeited. It’s very easy.
The second is the range (boundary). It predicts whether the rate at the end time will fall within the range or will go out of range with a certain in-range rate. For example, if the dollar yen range set in a certain time is set to 100 to 101 yen , it means that if it is a rate in the range from 100.01 to 100.99 yen, it will be out of range if it is a rate other than that. Unfortunately, there is no Japanese FX company that handles this transaction.
The third is one touch. This is a transaction that predicts whether the exchange rate you have predicted will reach that amount (or whether it will touch) once by the deadline. If you touch even once, the amount of the bet multiplied by a certain factor will be returned, but if you do not touch it, the bet will naturally be forfeited. One touch is hard to predict and hard to hit, but the payout rate is higher than HIGH / LOW. Domestic Forex companies offer services from Forex Prime and IG Markets Securities.
The above is the trading method in binary options. However, most companies in Japan are limited to handling only HIGH / LOW, so if you only know HIGH / LOW at this stage, there is no problem.
Despite the relatively new options, the popularity of binary options is rising. Why is binary option so popular? Here are some of the reasons.
First of all, it is the clarity of the rules represented by HIGH / LOW. Since HIGH / LOW is a two-option transaction that goes up or down, you can easily trade if you learn the rules. The threshold is very low for beginners.
It is also a big attraction that the time to decide the outcome is decided. In the discretionary trading, if you cross the day and week while holding the position, it will be very stressful, but if it is a binary option, the win and loss will be decided on time, and the settlement will be completed, so you will hold the position that is common to the discretionary trading There is no need to be frustrated. If you do FX, you will often feel stressed, but with binary options you will be free from the stress of holding such positions.
Then, the point that the loss is limited by the bet amount. Binary options always win or lose at a fixed time, and losses are limited to the amount you have bet and will never be more than that. On the other hand, in the case of ordinary discretionary trading, the timing of taking a position and the timing of settlement may cause unreliable losses if the timing of settlement is incorrect, which may result in a large loss if realized, and conversely, profit can not be settled well and profit is totally achieved. There are times when it does not, but if the binary option wins, the profit will be decided exactly. It’s easy to get a position that suits your money. Money management is important in FX.
One of FX’s new forms of trading, the one that is gaining popularity recently is the option called Binary Options. What kind of option is the binary option abbreviated as BO etc?
The binary option rule is a very simple option that only predicts whether the exchange rate is rising or falling at the time of the deadline, from the original base rate within the time decided by each company.
The rules change depending on the company, but if one example starts at 7 pm, and there is a round of the end time at 8 pm, if it is 1 dollar 100 yen at 7 pm, this 100 yen is the standard rate It will be. If the rate of 8 pm one hour after that is 100.01 yen UP (even when saying HIGH and CALL etc), if it is 99.99 sen DOWN (this is also when saying LOW and PUT etc) from the base rate the game loses and loses Decide. If even one sen goes up (falls) from the base rate, if there is a direction to bet, the bet will be won if the amount multiplied by a certain factor on the bet is refunded and the bet if it goes in a different direction from expected Gold is soaring in popularity now that the easy-to-understand rule of confiscation is that the threshold is low even for investment beginners.
There are still few companies that offer binary options in the country, but binary popularity is gradually becoming known to FX investors, and it is binary in the medium such as online FX information, magazines and books. The flow of introducing options is beginning to take place. As part of risk hedging, I think it is very effective to manage binary options as well as discretionary trading.