Binary options trading has become a widespread and very popular method of trading, even though it was officially recognized only around ten years ago. Even though many people dispute against it, claiming that it resembles gambling rather than trading, there is no doubt that binary trading has many advantages. First of all, it is simple and easy to understand the concept of trading. Then, it does not require previous knowledge and experience in online trading, unlike other trading methods. Lastly, there is a wide choice of online brokers with which you can create an account, as well as many binary robots and signal providers which can facilitate the trading process.
If you are new in binary trading, despite it being fairly simple and easy to learn, it is still necessary to get acquainted with the basics of trading and all the terms you will encounter during the process. Then, it is important to be patient and cautious when choosing a broker, because no matter how many reliable ones you can find, there are probably even more fake ones. When you find a broker you wish to use, for example 24Option site, it is good to read at least one review of it on some of the reliable, binary-related websites and at least several experiences of other traders, so you get an insight on the broker and how good it will be for you. It takes some time and patience, but considering how important it is, it is definitely something you must not skip. Once you engage in binary trading, it is necessary to stay informed all the time, follow the news and the trends in the economy, because your predictions will be based on this information.
Even though the trading itself is very simple, as you can see, it still requires decent amount of preparation, at least if you want to be successful in it and if you are serious about it. When you decide which broker or brokers to choose and when you learn the basics of trading, it is good to choose one or several binary options markets to trade. Most binary brokers offer more than one hundred binary options to trade, divided in different groups: currency pairs, stocks, commodities and forex. Naturally, you cannot trade all of them if you want to trade successfully. It is the best to choose only one group, and not to choose too many options within the same group. Keep in mind that you will need to follow the trends on certain assets all the time in order to make correct predictions, so imagine following the news on more than 100 assets.
But how to determine which assets to trade? First, it depends on your preferred trading style. If you wish to trade binary options with longer expiration periods, then forex market or commodities will be suitable, since their price fluctuations are not too large and they are more easily predicted. On the other hand, if you want to trade short-term options, it is better to choose stocks as your preferred options. Another thing that can influence your choice is the time of day. Depending on when you determine the time of your trading, you will have certain assets available, so you will choose them according to that as well.read more
Accounting has three major branches, and they are connected with one another, and only by using all three of them you can use full potential of accounting.
First branch of accounting is in fact the oldest branch of this financial discipline, and it is called financial accounting. This accounting branch covers daily recording of all relevant business transactions, profit and loss accounts and balance sheet. In this case profit and loss is actually net profit and/or loss, and it is shown for specific periods of time. Balance sheet in the financial accounting represents financial position on a date that is specified.
Then there is second accounting branch called cost accounting which is used for calculation of total cost per single unit of goods/services. Cost reduction of overall production and general increase in profitability of business are aims of this accounting branch. This is done through control of product cost.
Third major accounting branch is management accounting. Determination of all policies of the company as well as other important business decisions are made through information provided by other accounting branches.
Accounting is not all powerful and it has its own limitations. Those limitations are:
- Financial accounting can be, and is only applied to past business transactions. It doesn’t touch present and it can’t affect future. No decisions can be made on the basis of data from financial accounting reports. Reports that are derived from financial accounting can show profitability of the business venture, but it can’t suggest any decisions that would improve profit in the future.
- Only profitability of the business you can acquire with financial accounting is on overall level, there is no profitability report on single parts of business. This may sound as an empty complain but without detailed reports of profitability of each and every aspect of business venture there is no way to improve it by improving certain things in the places where profitability is low, or there is loss.
- Another limitation of financial accounting that hurts the business is the lack of reports that are not concerned with money. There are other aspects of business that are relevant to how business works which don’t have place in accounting, things like relations in the industry, working environment, product demands and so on.
- Financial accounting can’t determine real cost of the product, because this type of accounting doesn’t go in details of every product.
- Cost control can’t be achieved through financial accounting only due to lack of provisions. No improvement on cost level can be deducted from financial reports.
- Accountant has big influence in financial statements. This personal judgment is counter-productive because they don’t show true face of business, and due to that they can’t be taken seriously without further consultations of reports from other accounting branches and other finance disciplines.
All of this may seem hard, and it is. But ut will helo you once you decide to start trading, because some trading types do prospect from proper accounting done in background. Top Binary Robots are software that tries to do this automaticaly with small success.read more
Many consider hedge funds as just another type of mutual funds, which is a common mistake. There are many differences between these two types of funds and best example would be a list of regulations and restrictions that are set on mutual funds, things that hedge funds don’t have to worry about:
- All mutual funds require a degree of liquidity clearly stated by regulatory bodies, and hedge funds don’t have to follow that.
- Shares that are traded by hedge funds may be locked and stagnant for unknown amount of time while shares of the mutual funds must have the ability to be redeemed at any point of time.
- In mutual funds the conflict of interest ( buying two positions that are on opposite sides of market and on will create loss while other profits ) is forbidden while hedge funds have freedom to buy any position they want.
- Fairness in fund shares pricing is important only to mutual funds.
- Mutual funds have an obligations of disclosure which they must provide when the request comes. Hedge funds may disclose their business if they want, it is up to them.
- Mutual funds have limitations on how much leverage they are free to use while hedge funds don’t have any limitations on this, they can place as much of leverage as the position allows.
The lack of any regulations and legal control makes hedge funds a tricky field that has many cases of fraud. Those frauds came in multiple different ways and once you are hooked you will end up losing money either way, because there areno legal means of returning it. Prevention is only way to protect yourself from these frauds, so here are few tips on that.
- Research materials on hedge funds before committing to one. Once you decide that you want to be a part of hedge fund read through their prospectus and all related materials. Understanding the level of risk the fund will take, investment strategies they will use and comparing that to your goals is a good way to start.
- Read about valuation of hedge fund assets. If there are inconsistencies in valuation of those assets and you notice reluctancy from fund owners in disclosure of any info, back away.
- Ask about and understand the limitations on the resources you will pool into the hedge fund. Tow things are important, lock-up period which represents a time in which you will not cash in any part of your shares and a time frame in which you will not be able to take back the investment you have made.
- All this and much more comes down to asking questions. Ask them and ask a lot of them. Giving your money into a hedge fund means that you entrust someone else to deal with your money. To do that you must be 100 percent certain that money is going in capable and trustworthy hands.
- Frauds will happen if you trade with hedge funds on sites and software connected with articles like 24option review.
Binary options is the simplest system, which has been proved as a very successful among online trades with shares, currencies and others with a very controlled risk and amount that is known in advance. It is represented by a very simple system, which can easily be learned and that will give you the ability to make binary option trading, even though you are a beginner. Simply follow the instructions and, although you may initially do so complicated, you will possess a complete understanding of the system when you reach the end.
How to trade with binary options?
With binary trading, to do a successful trade, you have to correctly predict in which direction will be moving the chart of the stock market with which that you trade. Binary trading is extremely simple, because all you have to do for the purchase of options or performance of TRADE; you can do it in five easy steps:
First Choose the way of trading – Example EUR / USD.
Second choose direction of the stock market’s chart that can be up or down (HIGH / LOW).
Third choose the time of the expiry of your options.
The fourth enter the role you want to invest in trade.
STEP 1 – Learn the basics of binary trading
When the registration is not required to make a deposit, but it is important to enter the correct information to be able to get full supports. Also, if you later decide to trade, information must be accurate to be able to make the initial bet. There are so many sites that provide you the proper tutorial of online trading. So better prepare yourself for researching.
STEP 2 – Learn the trading system using of stock market’s chart
When you are clear grounds, you will be able to understand how to use the SASE chart and predict the direction of movement of the chart. It is the easiest and simplest way to a fast and successful trading. How to use the SASE chart? To read stock market’s chart used a free online program free stock charts . The SASE chart in presented in the form of a one-minute ‘spark’, representing the movement in the value of one minute. If the spark plug is red, it means that the graph of falling, and if it is green, it means that the value was increasing. The SASE chart on free stock charts are presented in real time and it is completely the same as the platform XXXXX, just as the broker presented in the form of lines.
STEP 3 – Binary options trading system using stock market’s graph:
Successfully predicting of stock market’s charts the indicators allow you, which combined together give a signal in which direction the chart is going to move. For this trading system uses two separate indicators – Bollinger bands and stochastic, which combine together give you a successful signal when to open a trade up or down, with 5 minute expiry. The system provides an average of 65% -72% win trades, which in binary option enables fast and high profits.
You can visit some binary options and choose which one is for you, for example Banc de Binary, Binary Options robot and 24ptions.read more
Or IRO as they are also known are options that give their buyer a right to earn cash if interest rate of the said option goes higher or lower, depending on the choice and call buyer made. To calculate whether the rate went up or down, there must be a certain rate which is taken as zero point which is known as strike rate and it can be found on the option description. TO calculate how high the profit is you have to take market race on the expiration date and strike rate which is multiplied by notional principal. Users of these options are usually companies that will require financial input in future, so they do this to lock down interest rate and avoid changes in it. Main sellers of these options are banks.
Few factors influence premiums on these options, as they do on all other options ( market price at the current date, value of strike price, time left until expiration, the volatility of the market and the type of option ). This type of trading is called options because you are given few options to trade with, in case of vanilla options you have but a two options possible, call and put. Call is a price option that is set higher than the current market price and its value rises as the interest rate in question rises. On the other hand put option, also called lenders option is an option that is set bellow current market price and its value decreased if interest rate goes up, and it rises if it goes down.
Even though they are both options there is big difference between interest rate and equity options. Equity options work on the single date basis, while IRO cover extended time frame. Interest rate has great impact on the economy which is the reason for high regulation from central banks, which prevents interest rate going into one or another extreme. So its variation is smaller than any other options. In case of IRO strike prices are called strike rates due to simple fact that interest rate rise or fall below strike points brings in profit.
OTC options that are used for hedge against interest rates risks are caps, floors and collars. Cap of the interest rate places a limit to the maximum interest rate, while floor places a minimum interest rate. Combination made with these tow limitations is known as interest rate collar.
Interest rate collars are option calls that are self-financing. Well in fact one option finances next and so on. Buyer buys an option on cap and then proceeds to sell it at the floor. In most cases in collars caps ara long and floors are short. The point of selling at floor is to offset the buy price of the cap, if possible completely if not at least partially.
Interest rate have small connection with binary options software like binary option robot because that software that interest rate when it calculated risk – reward ratio of every option.read more