The Facts About 60 Second Binary Options

Exciting and easy to learn, binary/digital options are among the many teasers that offer promises of great returns to traders. They are very easy when explained, but they can be risky as well. The thought of making up to 80% interest on your money can be exciting, but you should be able to understand the risk involved. 60 second binary options may seem very easy as you have just one minute to get in and out of the market. You do not have to go through the agony of waiting as it often happens with long term trading options.

Trading 60 second binary options is easy even to novices. You can know the maximum amount you would gain or lose before the market closes. All you have to do is to choose your option; it could be a commodity, a foreign exchange index or a stock index. You can CALL if you speculate that the price of the asset will increase or you PUT if you think the price will decrease. When you purchase a binary option, you state your price and you are told how much you will gain or lose depending on whether you are right or wrong with your speculation on price closing above or below the strike price.

One advantage of trading 60 second binary options is that you do not need a large amount of money to invest as is the case with other trading options. But it is important to note that there is no 50/50 lose or gain in this simple market strategy. You can gain or lose your investments up to 85-100%. Although the trade may seem simple, it requires skills and intelligence. It is not a trade for greedy people. The fact that you can make great money within a minute also means you should be able to make intelligent decisions within that short period of time.

It is important to choose your asset wisely. Understanding the factors affecting the price of an asset is very important. It is not time to gamble if you want to make money. There is a science in binary options and it works well with those who can use short-term charts without any difficulty like technical analysts and news traders. You may be inclined to believe that all the parameters of this form of trade are known before hand, but you might be in for surprises. That is why it is important to understand the factors that affect the price of a commodity or an option before you bet on it.

It is also important to understand that the law of averages does not work for this kind of trade. You can lose many times in a row as you can win. Do not be carried away by the idea that you can correct your mistake on your next option. Every item in this market is independent of every other. If you are trading blindly, you may stand many chances of losing huge sums of money. You should be able to work with detailed charts, understand how to use short-term charts and how to execute fast. It takes skills and knowledge to become successful in a market trend that may seem too easy.

Digital Options Trading – An Introduction To This New Financial Instrument

Digital options, frequently referred to as “binary options” or “fixed return options” are similar to traditional options in many ways but also differ in some very significant ways. They are really quite simple trading instruments requiring no exceptional knowledge of or experience with trading or financial markets. Of course, superior knowledge of markets and trading does often lead to superior results but it is certainly not a prerequisite to being a profitable digital options trader. In this brief article we shall touch on both some advantages and disadvantages to trading digital, or binary options.

Digital options, similar to traditional options, are available on a large number of underlying assets. With stocks, indices, commodities and currencies being the most popular assets available on which to base your binary options trades. However, unlike traditional options these “exotic” options pay out that fixed, known return. And it isn’t at all dependent on how far “in-the-money” the option is. If the underlying asset you traded a digital call option on is higher then the strike price by so much as one pip/tick then you are paid out the same high returns as if it finished in the money by 100 points. Magnitude is irrelevant with digital options. Certainly this is one of the appealing features of trading in digital options for investors.

Digital Options Trading Highlights

  • Market Neutral Instruments
  • Quick And Easy To Trade
  • Strictly Limited Risk
  • Small Initial Investment Required
  • Have No Commissions, Fees, Or Other Hidden Costs
  • High, Fixed Potential Returns Known Beforehand
  • Requires Only A Small Move In The Underlying
  • Can Be Traded At Any Time Of Day Or Night
  • Trade On Stocks, Indices, Currencies, Commodities And More

Some Digital Options Trading Disadvantages

  • Potential Returns On Winning Trades Will Always Be Less Then Potential Losses On Losing Trades (You’ll need roughly a 55% win rate for profitability)
  • Many Digital/Binary Options Brokers Offer Trades Which Amount To Little More Than A Roulette Spin – 60 Second Options To Name One. (We’re fans of binaries but we do recommend our less experienced readers stay clear of these types of trades.)
  • No Claim To An Underlying Asset (a possible disadvantage for some but for the majority not even an issue.)
  • Some Regulatory Conflicts For US Based Traders

Digital options trading can be a great choice for some investors or speculators but as with anything in life it too has both its drawbacks and strengths and isn’t right for everyone.

Understanding Digital Broadcasting

For many years, TV signals have been broadcasted in analog format. Over the years, many countries around the world have started using digital broadcasting. The broadcasting format comes with a number of benefits.

Benefits

Bandwidth: the high-definition and standard-definition digital signals are broken up into five signal patterns in order to accommodate multiple aspect ratios. This translates to good quality pictures for you regardless of the size of TV that you have.

Automatic tuning: the signals tune themselves automatically; therefore, you don’t have to worry about the bandwidth that the signal is working at. Due to this, you can buy any TV whether LCD, plasma or any other and be sure that your TV will be able to broadcast the signals.

Many reception outlets: with digital broadcasting, you have many ways in which you can receive the signal. The most common ways are: digital cable, satellite, DSL internet connections and mobile phone.

How It Works

This broadcasting gets into your TV in the form of binary digits. These are computer signals that are composed of zeros and ones. When a television station broadcasts a program, the signal is picked from its audio and video form and compressed into a signal that is fit for transmission.

The signal is then transmitted to a satellite space where it’s sent back to the various television towers in your country. The towers then broadcast the signal that is picked by your television in your home.

Data levels

Digital broadcasters have three main data formats in which they can broadcast the signals. These formats include:

480: it delivers standard definition television (SDTV) reception to your television set. The signals are similar to the analogue signals.

720 and 1080: the format provides you with excellent video quality that you find in high definition (HD). It’s good to note that format 720 delivers 80% more pixels than SD while format 1080 delivers over 270% more dots to your TV.

Compression is a very important feature in digital broadcasting. It allows digital broadcasters to send one or more sub-channels over the same frequency. This allows you to receive many programs to watch.

Conclusion

This is what you need to know about digital broadcasting. As a consumer, you are not concerned with the technicalities involved with digital broadcasting. All you need to do is to buy a TV or set top box that is compatible with the signals. As rule of thumb you should ensure that you buy from a reputable store.

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