If you’ve already started experimenting first is quantum code a scam with binary options trading, you probably know some of the process’s biggest advantages over older, more traditional forms of investment. In this article, I’d like to concentrate on explaining strategies that you can use to improve your performance as a trader and insulate yourself from potential losses.
Let’s start by discussing the best way to hedge your investments without making too much of a dent in your profit potential. The techniques I’m going to discuss here aren’t universal; they won’t be useful in every trading situation. You’ll have to use your experience as a trader and your insight into the market to pick the places where this method will be helpful for you.
The easiest way to describe is quantum code a scam use this form of hedging is with an example. Say you buy a call option on the NASDAQ index with a 12-hour deadline. You invested 100 dollars in this position, and the NASDAQ’s value stood at 2380 when you bought the option. Three hours later, the value of the index jumps up by 50 points, putting it at 2430. What you do now is buy a put option on the NASDAQ – again for 100 dollars – with the same deadline as your first option.
Now you have two options which appear to cancel each other out. But what’s going to happen when the options expire? If the NASDAQ price falls between 2380 and 2430, both of your options are winners. If the final price of the index falls outside that range, you end up with one winning option and one losing one.
For this example, let’s say that your broker offers 80 percent profits on winning trades and a 10 percent refund on losing trades. A double win, therefore, delivers 160 dollars of profit above your initial 200 dollar investment. If you’re left with one winner and one loser, your total losses will be only 10 dollars.
As you can see, this is a much better loss position than holding a single losing option or buying two losing options in a row. The only drawback to know is quantum code a scam and this strategy is that it only works to your advantage when you monitor your asset’s price closely and see an extremely favorable move in time to place the second hedging option properly.
This is just one of the many strategies available to you in the world of binary options trading. It’s a personal favorite of mine because of how dramatically it reduces your risk.
Abscident is an experienced online trader who has worked with many different systems, including forex and binary options. He’s an enthusiastic supporter of binary options trading and believes this is a form of investment every dedicated trader should understand and explore.