Overview Of Buying And Selling Binary Options - Traders Help Desk Blog

Overview of Buying and Selling Binary Options.
In this buying and selling binary options tutorial, Gail Mercer of TradersHelpDesk shows traders how to enter both long or short binary options and set profit targets.
Overview of Buying and Selling Binary Options.
While buying binary options is pretty straightforward, selling binary options can be confusing for new traders. In this video, Gail shows you the difference between buying and selling. Remember, the maximum payout on any Nadex Binary Option is $100. When buying, the premium equals the risk you pay on entry and the profit potential is $100 minus the risk. However, when selling, the premium shown is subtracted from the maximum payout ($100) to reveal the risk and the profit is the premium price (unless the trader modifies the entry order).
When does a trader buy or sell? When trading binary options, remember it is like a True or False statement. If the trader believes the statement to be True, he buys. If the trader believes the statement to be False, he sells. When buying the binary option increases in value up to the maximum payout, $100. When selling the binary is decreasing in value from $100 to zero. Here are some examples, excluding commissions, and based on holding until expiration:
US 500 > 2276 by 2:40 pm New York time Premiums Sell $28 Buy $35.
Also remember, when buying and selling binary options the rules are when buying the indicative price index must close greater than the strike price. When selling, the indicative price must be equal to or less than the strike price.
If you enjoyed this video, you may want to watch the bar by bar analysis when buying and selling binary options video, as well.