Binary Option Up and Down Trade
Basic of Binary Trading
The basic binary option trade is called the up and down trade or sometimes the high and sometimes low trade. binary options trading and all other. Binary options trading is a variation of this trading method or style and their profit share ratio.
With up and down binary options the trader determines whether the price of the underlying asset at the selected end time of the trade will be higher or lower than the price at the beginning/ opening of the single contract and trade.
The only thing is the possible gains is the price at the expiration time of the selected trade contract. In your correct prediction case, the trader receives back the 100% trade/ contract amount with the profit payout ratio of between 70 % and 90 % of the amount invested.
Binary Trading in Simple Words
In Binary Trading/ Quotex simple words if your market price prediction is for Up trend and you open a contract for Up in selected time if price is more than the contract staring price you will gain profit and if the price of an asset drops and you place a contract for up you will loose your amount.
In case the forecast of the trader was incorrect, that is, the market price at the time of expiration is lower than the strike of the up -stroke call option or higher for the down -stroke put.
The contract is in loss. Now the trader is lose their investment amount. in loss the trade can use MTG for recovery on next trade. What is Mtg? detailed explain in this article post.
MTG in simple word is if you loss first trade, increase amount by double on next trade. If second trade is profitable you will recover your previous trade loss with profit.
Meaning of Candle Up & Down/ Green & Red
Candle or candlestick is like a single bar represents the price of an asset, its reflect the price of current market.
Each candle have its opening and closing price in specific time period like 1 Min, 5 Min, 1 Hour chart frame time.
Lets discuss about candle and their appearance, the candle have three main parts the Body, Wick and colour.
Body represents the opening and closing range and wick shows us the intraday low’s and high’s. lets talk about colour of the candle red or green its shows the direction/ movement of market price like green candle is indicate for market upward trend, while red shoes market asset price is decreasing.
You can Search different article about this topic, also I am referring one site.
Important Note for Binary Trading and Quotex
Always Do trading with proper capital management and risk management. Always take low risk which you can bear in case of loss. All the traders and Brokers are here to making profit so its your strategy how you can achieve target and take profit. check my post about binary strategies.
Pick daily Profit and Loss percentage, like 10% for profit and loss of your capital amount. When you gain 10% exit the market right away and save your profit and do not over-trade, if your stop loss for the day is hit leave the the market for a day, remember not always the market in your side so its better to stop for day and accept some loss so you can take profit and recover your loss on next day. If you loss face loss that’s mean the market is not in your favour so avoid this type of market, if you continue and over trade you can face more loss.
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