direction the stock is likely to head after a news release affecting the share price of the company in question. Make your prediction on the movement of the price of the asset. Since 2003 I have been trading financial markets starting with forex and then broadening horizons to commodity markets. Trading call Options, a call option is where a trader believes that the price of a security will increase in value by the time the option expires.
A trader may purchase multiple contracts, if desired. During the course of the option, if the trader believes that the option is likely to expire out of the money, they could use the Close option. How to Trade Stock Binary Options. To conclude, binary option is very simple and easy to trade. The bid and offer fluctuate until the option expires. For instance, increasing import duties on raw materials for a particular industry could erode the profit margins of affected companies and negatively impact their ability to remain competitive against foreign goods.
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