Binary Options Trading – Discretionary Income

Binary options trading gets better only when you get hold of financial vocabulary to express financial feelings.  In the end, the movement of market price direction is the expression of the spending pattern of the public.  Individuals will be able to take care of the rest of the activities of living only after fulfilling their basic requirements like in food, shelter, and clothing.  It is about the money they have for spending either for investment purposes, for future savings, or for personal desires.  Necessities come first.  The money left after requirements of life are fulfilled is what makes the discretionary income.

Typical household or individual expenditure includes rentals, electricity bills, water bills, utility bills, groceries, health care bills, educational bills, insurance, festivals and event expenditures and more.  It is only after these needs are secured, can the individual move on to the next level of enterprise and entrepreneurship.  However, the interesting thing is that without being an entrepreneur or worker of some kind it will be impossible for someone to meet up with the bills meant for living.  Wondering what binary options trading has to do with this, it is here the entire understanding lies, the pulses and sentiments  of a major percentage of the trading population is driven by the needs of life.  The desire based life is a second factor and traders need to understand this.

And, majority of the population is not armed with natural financial strength unless supported by credit.  So, the interesting thing about the economy is that credit enters in to the basic survival status of human beings.  When it comes to repaying credit people can do so, when they are able to sell the product or services they are equipped with.  Trapped in credit, people would not be willing to give away products and services for free because personal skill is the only credit worthiness of an individual.  Practically activities are the major value additions in the economy, when there is no activity there is no sale! So, as people trading in binary options trading, it helps to touch base with the reality of the fact that money should be paid for survival, at least for enough to survive.  And, this means you should keep track of the discretional income numbers to understand the directional indicators for binary options trading.

Binary options trading – Consumer Price Index

To judge the price as going up or down you should know how to judge the inflation process.  Consumer price index, employment cost index, employment situation, producer price index, productivity and costs, real earnings, US import and export price index, and more… you should know them to surf in the sea of call or put in binary options trading.

You should know how the different factors are wired in to your asset type and you should know how to make the decision based on the different market forces and their immediate influence in the economy of the asset type you might be dealing with.  Well, most of us in to binary options trading will know that there is something called consumer price index.  However, what does this consumer price index has to do with the call or put decision you are to make matters in the doing.

You understand that the consumer price index is important for the asset type you are dealing with and you have the index and you do not know what to do with it.  This is the most harmful of the stuff that can happen. 

The consumer price index reads like “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1  percent in September on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today.”  So, how do you react to this and what has this news to do with your decision making in binary options trading is a point to think of…

If you are planning to trade in September you should know about what this increased 0.1 percent data can do to your asset type.

An index is a measure of something in layman terms.  Consumers are those who are using it.  Consumer price measurement increases means the prices have gone up on an average for all the consumer goods!   So, what are consumer goods? Shelter index, medical index, grocery store food index, energy index, .. this means the price has gone up for all these products. 

Think if this price is within the support and resistance level.  Common sense* if the price is too high it is sure to come down! When? This is brain work for binary options trading.

How Can I Get Free Binary Option Signals?

To get free signals or 2500 SigConnect API credits, you must:

1) Be a NEW customer to the selected platform within the last 30 days. To open the account, open signal push, go to the settings area (icon top left), select platform, then select any certified platform's that will work with your provider (or the API) and click "i don't have an account". 

2) Deposit at least the minimum amount (we recommend more however, so you can practice good money management).

3) Send the platform your verification documents. These are typically listed on the platform's website.

4) Once you receive word that your account as been verified, let us know by forwarding us that email and we will activate your account once verifying with the broker.

5) In order to keep your free service, the trades must actually be copied to this platform account. If no trading is being done on this platform account, the free service will be removed. If we find out that you did not use this account or that it is a duplicate account, we reserve the right to charge the card on file for the subscription fee. PLEASE use your account to avoid any issues. This is because the platform's want to see trade activity in order to pick up the cost for the free service and they don't pay for duplicates. If you are requesting a free month of service and not API credits, this is only available for providers who charge $200 or less per month. If the provider has multiple plans, you receive the entry level service. 

6) You must have an active credit card on file. 

What Are Binary Options

Up or Down

Binary options trading requires the trader to speculate on whether the price of an asset, (a product traded on the financial markets, e.g Facebook stock or the Euro), will rise or fall within a given time frame.

Basically, the trader asks a very simple question. Up, or down? 

Unlike traditional options, where the payout is based on the price of the option at expiry, and each increment that the asset continues to rise or fall can have a huge impact, binary options are all or nothing, where correctly predicting the direction is all that matters. There are only two possible outcomes with binary options, also known as Digital or Fixed Rate Options (FROs). The possible payout is already fixed at the time of opening the trade. With traditional options, there is no way to know in advance how much will be risked or earned on a trade, but with binary options the trader knows in advance, and can control, the exact level of risk involved. The trader is given the option to select the risk percentages for every trade, determining for example that they would prefer a 65%:20% return ratio, or a 70%:10% payout, with a 70% return on an in-the-money outcome and a 10% return on an out -the-money result.

Pick and Mix

Binary options traders can pick from a range of up to 180 assets when deciding what to trade, including currencies, commodities, stocks and indices. Multiple trades can be open at the same time, each for a different type of asset, or the trader can choose to focus on a single trading product.

Easy as 1, 2, 3

Binary options trading is incredibly straight-forward. If you think that the underlying asset is going to go up in value during the set time period allotted for the trade then hit the green CALL button. However, if you think that its value is likely to drop over the given period then hit the red PUT button. If you predicted the direction correctly, then your contract is “in the money”, when it expires, and if you failed to correctly predict the outcome then it expired “out -the-money”.
Making a trade is done in three easy steps.
1st – Pick an asset to trade- any currency, commodity, stock or index.
2nd – Make a prediction- CALL or PUT.
3rd – Choose the amount you want to trade- then click APPLY.
Binary options trading is incredibly fast-paced. No download is required, so set-up is quick.
The process of making a trade is also very brief, while offering high payouts in a short space of time. Trades can be made with a wide range of expiration times. Traders who prefer the adrenaline rush of the fast trade can opt for daily, hourly, 15 minute expirations and even those that from start to finish, take a matter of seconds, while the longer term trader can select, weekly, monthly and even end of year expirations.
More experienced binary options traders decide what to trade and then anticipate the direction it will take based on news events. For example, above average rainfall could impact the sale of agricultural commodities like wheat, while political upheaval in an oil rich region could impact the price of Crude Oil.  Additionally, major economic announcements, or reports published on a regular basis, such as unemployment rates may impact a country’s economy and effect the whether its currency rises or falls. Even a new Apple announcement on the release of the latest iPhone OS can impact stock rates.

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