How to avoid a hit and miss approach to binary options and Forex currencies trading especially for the newcomer but also the struggling intermediate trader. Too many new traders have jumped into this lucrative endeavor treating it as gambling and ending up very discouraged to say the least. We will attempt to offer a good common sense successful approach to this exciting world of trading for profit.
Many people have heard of options, however they might not be entirely familiar with how they work. Options can be bought or sold, and the buyer is given the right, but not the obligation, to buy or sell a stock at a specific price (called the "strike price") on or before a certain date. The seller, on the other hand, has the obligation to sell a stock at the strike price on or before a certain date.
An option is a contract that gives you the right to buy or sell a stock at a specific price (called the "strike price"), but the catch is there is a specific time limit, too. They expire. Some people like options because you can make (or lose) a lot of money very quickly if you do it right. There are two types of options: "call" options and "put" options. I have no idea why that's what they are called, but those are the names. Each type of option can be bought or sold (just like with stock). So you can buy a call, sell a call, buy a put, or sell a put. Every option is "worth" 100 shares of stock.