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HFX Binary Broker - Start with ONLY $50 (Quick Overview)|7:42

Started by PocketOption, Mar 17, 2021, 04:44 am

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A binary option also known as all-or-nothing option is a financial contract that entitles its holder to a fixed payoff when the event triggering the payoff occurs or zero payoff when no such event occurs.
Possible payoff of a traditional option ranges from zero to some upper limit or infinity and it depends on the actual difference between the exercise price and the price of the underlying asset.
Payoff of a binary option on the other hand, is just a fixed amount which is not affected by the difference between the exercise price and the price of the underlying asset.
A binary option depends on the relationship between the exercise price and the price of the underlying asset only to determine whether the payoff will occur or not.
It is also called digital option because its payoff is just like binary signals i.
0 or 1 where 1 being the maximum payoff.
A binary call option pays 1 unit when the price of the underlying asset is greater than or equal to the exercise price and zero when it is otherwise.
This is expressed by the following formula.
In the first scenario since SET is higher than the exercise price 1,690 1,650 , it will trigger the payoff which equals the option multiplier and Keita will receive 100 per option and 100 thousand in total 1,000 100.
Tag Archives price action chart.
Understanding Price Action.
Price action is a by-word in the trading world including the binary options industry.
If you are a newcomer in the trading industry, you might wonder what price action is all about.
Simply put, price action refers to the movement of the price of an asset.
The name of any particular asset does not matter.
As long as it creates data about its price history, its price action can well be traced.
If you are particularly fond of using a particular asset in your binary options trading, you will come to know more about the price history of that asset.
You may already be aware that an asset s price history can possibly repeat itself depending on the scenario it is subjected to at a particular time.
The data we often see in price charts show the way its price change over time.
This is price action.
What are price charts.
Price charts are graphic representations of price actions.
They also reflect the sentiments of market stakeholders over a specific period of time.
If you want to know price action, you have to evaluate how the beliefs or sentiments of market players have changed over the course of time.
Even basic changes and news or announcements about economic developments play a role in price action.
For a lot of traders, having a good knowledge about price action can help them keep things simple.
As a trader, the only thing you should be concerned about is to know the reason why the price of an asset is moving.
By looking at price action charts, you will be able to get trading signals that are highly probable especially in binary options trading, because you only need to predict whether the price of an asset goes up of down.
What are the benefits of knowing price action.
Aside from giving away trading signals, price action can also help you interpret the meaning of price movements and enable you to formulate strategies.
These strategies have a particular way of allowing you to make a reliable prediction of future price movements.
If you know how to interpret price history and price action, you will really have a big advantage over the market.
If you apply that knowledge in binary options trading, your chances for making profits will definitely increase.
A lot of traders who have good knowledge on price action are contented of what they got.
Some aren t even interested in learning other complicated market analysis techniques anymore.