Binary Options Trading – Stock Options

Stock Binary Option Trading

Unlike traditional stock trading, stock binary option traders do not purchase physical stocks. They instead make an investment based on the movement of the valuation of that stock on the stock exchange.

Stock binary option traders also operate over much shorter timeframes so they are able to achieve profits much quicker than traditional equity traders. Return on investment can be achieved in as little as 1 hour.

Because stock binary option traders do not physically purchase stock, this means they are able to make very attractive returns without committing large amounts of cash to secure a large volume of stock. For example, by purchasing on Option Range a 1 hour ‘Call’ stock option, for example on Apple stock, the trader is anticipating that the value of the stock in 1 hours’ time will be higher than the value at the time the option was purchased. If the correct prediction is made, the stock binary option trader can earn up to 81% return on his investment. Therefore an investment from $10 - $750 could earn the trader from $8.10 - $607.50 in as little as 1 hour.

Option Range offers binary options on the following popular stocks:

APPLE
BOEING
COCA COLA
EXXON MOBIL
GOOGLE
MICROSOFT
NIKE
MCDONALDS
ING GROUP
VODAFONE

Index Binary Option Traders

Binary option traders on Option Range are also able to invest on Index markets (a more in-depth description of Index markets can be found below). As with stock options above, binary option index traders have similar advantages over investors that purchase Index stock.

Index traders (also referred to as forex traders) purchase stock in anticipation that the overall valuation of the Index will increase. This can take some time to achieve and the level of return is not known prior to the investment being made. Forex traders profit based upon the spread of the stock, or difference between the buy and sell price. This will always require price movement of a minimum of 3 PIPs (Percentage in Point) in order for the trader to make a profit.

Conversely, index binary option traders require price movement of only 1 pip to be in-the-money. This is because the return on investment is paid out according to the movement in the valuation of that Index above or below the strike price, or price at which the index option was purchased. Binary option traders do not buy physical stock so there needs to be less price movement in order to return a profit.

Binary option index traders are also able to determine their level of investment, know their potential return on investment and know their potential losses before the trade is made. This is a distinct advantage over forex where any potential profits and losses are not known prior to the trade. On Option Range, the rate of return is fixed at levels up to 81% and traders can achieve a return on investment in as little time as 1 hour.

It should also be noted that binary option traders on Option Range do not leverage their trades which further reduces the level of risk they are exposed to. Traders can potentially earn up to 81% on their investment and can only lose the money they invest. Leveraged investments on forex mean the trader can very quickly lose potentially much more money than they intended to invest. And with Option Range’s market leading investment tools any potential losses can be considerably mitigated against using the Extend and Stop Loss functions.

Option Range offers binary options on the following popular Indices:

DAX FUTURE
S&P FUTURE
NASDAQ
DOW JONES
BOVESPA
CAC FUTURE
FTSE 100 FUTURE