The few types of trading are Non-Exchanged and Exchange trading. Non-Exchanged trading is where the traders do not have to go to any exchange for buying or selling options. This type of trading is preferred by retail traders because it does not require them to pay a commission fee, which can be very expensive in the case of conventional stock options trading. However, this type of trading has some limitations as compared to Exchange-traded ones.
No Margin Trading: You cannot trade a significant amount in non-exchanged markets and hence you will not be able to take advantage of the higher leverage offered by exchanges like Stock OptionsXpress, eOption, and others.
No Leverage: As mentioned above, Non-Exchanged trading does not allow the traders to use leverage. Hence, they will have to buy options in smaller quantities than those offered by exchanges and hence will not be able to reap the benefits of a higher leverage level.
No Margin Call: In case the price of an underlying stock goes very high (for example up 20% in one day), the exchange may ask you for more money so that you can continue trading with them.
Various Strategies Trading Digital Options?
This strategy works on a pair trading approach where you have to buy a call option and sell a put option with the same strike price, expiration date, and underlying stock. The difference between these two options is the strike price. An option holder can sell his option at any time before it expires whereas it can be bought anytime before it expires (called as “buying in-the-money option”). The profit comes when the underlying stock price goes up by more than the value of both options combined. If you want to know more about this strategy:
- It is renowned for its excellent unfailing results when appropriately executed.
- Risk Reversal Strategy- It is considered as a hedging strategy where the peril in dealing with digital options is reversed handsomely.
- Inside Bar Strategy- This is an extremely constructive tool for traders. It is effectively executed by observing various market trends minutely thus establishing the price for personal investment.
- Money Management Strategy- This strategy is well-known for increasing profits as well as decreasing losses. The key element behind this strategy is a discipline where a fixed percentage of funds are invested and it never exceeds the line.
Moreover, the process of trading with bitcoin prime is compatible with Android operating systems. You will also receive a secure payout of 85% on binary options and up to 100% on various bonus deposits. The deposit scheme may vary from debit cards; wire transfers, Moneybookers to major credit cards. With a minimum deposit of 200$, you can step into the binary options trading market.
Each of the aspects comes with a multitude of tips. None but a genuine trading platform. option prime can suffice confidential information in this regard. The availability of a wide number of trading platforms has enhanced the populace to invest in fixed return options more securely.
With 24*7 finest class of customer support options, user-friendly web-based interface, and more than 200 world assets in their inventories, these platforms have established themselves to be reliable, unswerving, and trustworthy with your money. With the inclusive assistance of these platforms, you will be comfortable and at ease in trading your binary options.