Latest Post

The trading techniques based on breakouts are very popular because they are quite profitable and can be used to trade in any market.  Many traders know the fact that after the price get caught into an area of consolidation a breakout usually occurs by which the price make a violent and extensive movement outside the area where it was consolidated.

These movements could be so strong that a trader can obtain high profits if enters the market in the right direction. However, the problem is that in many cases the traders who jump when there is what appears is a breakout realize the fact that the price returns to the area of consolidation and ends losing money. This is known as a fakeout or false breakout.
In fact, the fakeouts are so common that many investors trade and make money with strategies based on false breakouts.
An area of consolidation is a range in which the price gets caught during a specified time. The following image shows an example:

WWM-Forex Broker Review

World Wide Markets or WWM is a regulated Forex broker founded in 2011 from which also specializes in CFD trading and commodities trading with assets like gold and silver. It is a broker which offers direct market access and many financial assets to trade in the market.

WWM is a Non Dealing Desk broker, which means that it does not act as the counterpart of its clients in their trades and does not intervene directly in these transactions. In this way there are no conflicts of interest between the company and the trader since World Wide Markets acts simply as an intermediary between the customer and the market.

The flexibility of binary options trading compared to other financial products offers a number of opportunities for the trader, including the ability to speculate based on a variety of markets, which in turn offer a wide selection of underlying assets including currency pairs (Forex), stock indices, commodities and stocks. Having such a variety of assets among which we can choose, there are greater possibilities for the trader to perform an operation with a binary option that ends In The Money.

When we trade with binary options, there are two possible outcomes. The role of the trader in this scenario is to predict whether the price of the underlying asset will go up or down with respect to a certain price (usually the entry price of the option) and an equally predetermined period of time, known as expiration period or expiration time.

When a trader operates in the binary options market, basically what he does is a prediction about what direction will take the price of an asset for a predetermined period of time. When the time of option expiration arrives, the trade can produce two possible outcomes - the option expires In The Money or Out The Money.

When a trader incorrectly predicts the direction of the underlying asset price, then the option expires Out The Money, which means that this is a losing trade. In binary option strading, when the option expires Out The Money means that the trader was wrong with respect to his market forecast and therefore the underlying price moves in the opposite direction to the direction predicted during the expiration period of the option contract.

At The Money Binary Options

In binary options trading a trader must predict the price movement of an asset in the market during a predetermined period (the expiration period or maturity). When the time of option expiration arrives, it can produce only one of three possible outcomes for the trade.
If the price of the underlying asset moved in the direction predicted by the trader, then the option will have expired In The Money (a winning trade). But if the asset price moved in the opposite direction, the option will have expired Out The Money (a losing trade). However, it is said that a binary option has expired At The Money when the option value ends at the same level as the original exercise price (strike price) once the maturity of the transaction occurs. For the trader, an option that expires At The Money results in an operation that does not generate profits or losses as it is considered that the option did not end in the gains zone or the loss zone. In other words it is a transaction that ended in a "tie".
However, there are brokers that handle binary options At The Money like options Out The Money, ie as losing trades. The reasoning is that since the trader must select one of two options -call or put- based on a possible rise or fall in the value of the asset, a result indicating that there was no movement in the underlying price means that the trader has incorrectly predicted the outcome of the operation.

Example of a binary option that expires At The Money

For example, if a trader places a Call Binary Option  of 1 hour at 14:00 based on the stocks of BNP Paribas (which value at that time is €43.00), the option will expire At The Money if the stock ends with the same value (€ 43.00) at the time of maturity at 15:00. In this case, the operation produces no gain or loss since the price has not finished up (as predicted by the trader) or down (in which case the trade would have ended The Money Out).

Note that if the value of the stock would have closed at €43.01 or more at 15:00, the option would have expired In The Money and the trader would have made ​​a profit.

The binary options broker Finmax is offering during 2017 a series of promotions for its new clients that include a welcome bonus of up to 100% and a risk free transaction in which the broker assumes the trader´s lost in case the option expires Out The Money. In the case of the welcome bonus this is a deposit bonus whose terms are fairer compared to other similar promotions that have previously given bad reputation to many binary options brokers because of their unclear conditions that fall into deception.

-Period of validity of the promotions: Finmax has not indicated a deadline for these offers and therefore they are valid throughout 2017 or until the company indicates otherwise.

Below we will describe both offers and their main conditions:

The Piercing Line candlestick pattern is a reversal formation that occurs in downward trends and usually indicates a possible change from bullish to bearich trends. This pattern has a high reliability and can be identified as follows:
  • This formation is only formed during downtrends.
  • The first candle is always a big black candle (bearish).
  • The next candle should open below the low of the black candle.
  • The white candle of the next period should close at least above the midpoint of the real body of the black candlestick.

When we trade in the Forex market at some point we will cross with requotes. While this does not happen all the time, it can happen and the trader should know what they are, what they mean and how to avoid them.

What is a re-quoting?

A re-quoting in the Forex market means that the broker with which we are trading is not able to provide us with an entry into the market based on the price we asked at the beginning when we send the order. Usually this occurs in highly volatile markets in which prices move up or down very quickly, usually in the periods in which important economic or political news are announced but also can be caused by some event that had a strong impact on the market. 

Enter your email address to subscribe:

Receive free content of this website at no cost on your e-mail. We only send the latest articles of ForexDominion and interesting content, without any spam

Author Name

Formulir Kontak


Email *

Message *

Powered by Blogger.