in this article I am going to share with you my trades and my trading setups.I took some trades in an exchange broker. I told you how exchanges are in previous articles.Actually, I took 2 binary options trades.Both of them were in the money. I took also one more trade but not in binary options. For the same asset, the same time and almost the same time expiry I took a forex mini contract.Look at my results.
As you can see the first and the second trades are binary options contracts and the last one is the spot FX mini contract. The total profit is 53 pounds.This means about 83$ in about five minutes trading time.The opening price in the screenshot is the price I bought the contract.As I said in previous articles if the contract finish in the money the closing price is 100. If the contract finish out the money the closing price is 0. You can calculate the profit :
(Closing Price – Opening Price) x (number of contracts)
The opening and the closing price of the asset depend on the probabilities of the asset to be in the money or out the money.At the beginning of the contract you can buy or sell the asset to fall or to rise in a specific expiry time with 50$ because the probabilities are 50-50 for the asset to fall or to rise.Moreover, you have the choice to close your position before the expiry with a loss or a profit.Again, the price depends on the probabilities of the asset to be ITM or OTM.For example if an asset has its expiry at 12:00 and the time now is 11:57 (three minutes left for the expiry) and the price now is about 4 pips above the strike price you can buy the contract now for the rising of the asset but you must pay more than 50$ now, you must pay an amount about 75$ now because it’s very possible the asset to be in the money because now it’s about 4 pips above the strike price as I said earlier.Your profit will be smaller of course.If you buy the contract 75$ your profit will be 25$.
(100-75) X 1 = 25$
The binary options exchanges give many opportunities for trading binary options and a traders has also many opportunities to follow many strategies like hedging.