Experience New Trading
Strategy with Innovative Binary Options Writing
Importance of Binary Options Writing:
Today
most of the individual traders have found writing binary options as a new
trading strategy that helps in creating new binary options to sell. Writing
binary options will offer great opportunity of buying, selling and trading the
binary options with other traders that will hedge their investment. It is
generally found that buying and trading binary options lays a platform for
investment that can be capitalize on the movements of different market stocks,
indices, commodities and currencies.
Popularity of Binary Options:
The
concept of binary options exchange is based on purchasing binary options from
other traders via Exchange. At times traders write binary options by setting
the direction or high or low of binary option, payout and risk capital. The
popularity of binary options trading is because of the lucrative quick returns
and lower risk.
Reasons of Popularity:
- Simple and easy to trade
- Controlled risk with high fixed payouts & fast returns
- Multiple binary options
- Currencies, Commodities, Stocks and Indices across multiple worldwide exchanges for a single user
Why to write binary options?
Lack of hedging possibilities is considered to be the main problem in buying binary option. It is widely seen that most brokers allow traders to “hedge” their investments by buying similar Call and Put options on a same financial instrument. In this case, at times the “hedging” does not work. For instance, Call binary option shares in Company A that will expire in an hour and will offer 70 percent of profit to the buyer. While a Put binary option on the same company for the same expiry time will generate payout of 70 percent. When a trader buys both Call and Put binary options on Company A for $100 each then he will earn $ 70 and lose $100 (net loss$30).
This scenario give rise to write a new binary option for a trader that will enable him/her to hedge his/her investment. By writing a new Put and Call binary option, the trader can sell it that will prove to be profitable for the buyer.
It can be concluded that writing binary options can create new options and exciting opportunities for hedging existing investments. You can find an illustrative and useful binary options writing guide at TradEqual. We ensure in providing best trading platform where one can use innovative binary options writing and earn more.