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December 27, 2012 – 6:17 pm | One Comment | 6,164 views

Banc De Binary, which is headquartered in the City of London, is regarded by many experts as one of the most professional binary options trading brokers on the Internet. The company started operations following the …

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Introduction

Binary options have carved out a niche focusing on known risks, straightforwardness, and a de-emphasis on volatility.

Trading Basics

Once the options trader has registered his details online and completed his deposit, he is then ready for trading binary options.

Trading Strategies

The straddle is one of the best strategies in binary options trading. The trader is looking to place a Put as high as possible.

Risk Management

One of the most important considerations for any trader is how to manage risk as loss is always a possibility in trading.

Fundamental Analysis

Fundamental analysis looks at how outside influences like natural events can affect prices and serves as essential tool.

Home » Trading Strategies

Knock-On Effect Binary Options Trading Strategy

Submitted by on December 3, 2012 – 6:42 pmNo Comment | 2,533 views

This is perhaps the most logical of all strategies, and is based on the concept that a move on one option will have a knock-on effect on another.

For example, the price of a stock may affect the price of the index in which it is traded or if a country heavily relies on a particular asset, then a change in that commodity’s price may affect the country’s exchange rate.

For example, a company might announce a major new product launch or a development breakthrough that causes its share price to rise but also drives down the value of the company’s competitors. In this case, a trader would buy a Call option on the company and Put options on all of its main rivals.

The key is to understand the interrelationships between assets and to correctly anticipate price movements. The trader receives his payout; it does not matter what happens to the price after that.

If the price does not reach the stated level before the expiration of the contract, the trader will lose and forfeit his stake.

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