In today forex faq, we have a question from one of our fellow traders asking me to elaborate more about binary option.
Below is the question:
Can you tell me more about binary option and is it much more easier to trade compared to forex trading?
Besides this question, I have been receiving emails from readers of this blog asking me whether I am still trading binary option as I have not been sharing with them the outcome of my trading.
Therefore I will start to do it for the month of October 2012.
So let me tell you more about what binary option trading is all about. It is basically an option that expires in an hour. All you need to do is to analyze whether the market is going to move up or down for the next hour.
You can trade binary option with forex, stocks, oils as well as commodities. Therefore you have a wide variety of stuff to trade. However for me, I specialize on trading currencies as I will be analysing them for my normal trading.
There are several good factors of binary option trading which actually entices me to give it a try and I seriously did not regret my choice.
1) You do not have to worry about your stop loss and target profit. All you need is one pip in your direction at the end of the hour and you make a profit. Let says that you believe that the price is going to move up in the next hour and you enter a CALL option.
All you need to do is to look at the market movement at the end of an hour to see if it is at least 1 pip in your direction. If it is, you will make a profit in the trade and it is this easy.
I have been profitable every month using the strategy that I have shared with you guys some time back and if you are really interested, you can use it to make extra income for yourself.
2) Trading binary option is less time consuming as you do not have to look at the chart constantly for hour. All you need is to enter a trade and then you just have to look at the chart at the end of an hour to see the outcome.
Therefore I will strongly recommend those of you who has not trade binary option before to give it a try. In fact, when I am writing this post, I have made a profit from one of my binary option trade.