This is default featured slide 1 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured slide 2 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured slide 3 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured slide 4 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured slide 5 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

الجمعة، 25 مارس 2016

Gold Spot Price Review

Spot value is a commonly used standard for the value of an ounce of gold. Among small, individual, and retail buyers of the physical metal, it is the most common and most important. Despite the fact that purchases from, or deals to, large bullion brokers will often range from five percent above to five percent below spot, most use the spot value as the benchmark value for the commodity.

Identification

Spot value is the going rate for an immediate exchange of a commodity for cash. More often than not, the spot price of gold is lower than futures prices, reflecting the additional cost of storing the commodity until delivery and the impact of speculation. If the spot value of the asset is higher than the future price, this condition is called "backwardation," and indicates doubts about future availability of the commodity on the spot markets.

Features

Gold spot is an "over the counter" market. This means buyers and sellers are not matched by market producers at an exchange, yet rather meet up on their own terms. The major spot markets are in London, New York, and China with traded investments priced in the local currency. Each spot market has a list of acknowledged assayers (the individuals who determine value), and bullions with the market imprints are considered fungible for "good delivery."

Size

Like futures markets, however, spot markets trade in units of considerable sizes. The specifications differ, but individual bars vary in size from 100 to 400 ounces. At $800 per ounce, this means each bar is valued between $8,000 and $32,000. The minimum transaction restrictions can be as high as half a million dollars. These barriers to entry mean that relatively few large buyers can participate in the spot markets.

How Is Spot Value Determined?

The spot value reflects the market's expectations of future price direction. The spot value of the commodity is set in commodity exchanges in New York and London.

What Are Commodities?

Commodities include natural food items such as corn, wheat, cattle or pigs and industrial raw materials such as crude oil, natural gas, copper or zinc. These things and scores of other products are traded in markets called commodity exchanges.

Commodity Trading

The commodity exchanges trade things for immediate delivery and payment in the spot market or for future delivery and payment. That is the "futures" market. Companies use the futures market to guarantee they have the products they will require at a known price. Speculators use the futures market to attempt to make a profit from price fluctuations; they do not intend to deliver or get the actual commodity. For spot, the most important exchanges are the New York Commodities Exchange, and the London Gold Exchange.

The daily spot price is based on orders to buy or sell the commodity from customers of the five worldwide investment banks that make up the membership of London Gold Market Fixing Ltd. To modify the spot price, representatives of the five banks convene by telephone conference call at 10:30 a.m. and 3 p.m. London time.

Speedy Process

Daily price fixing continues until there is a price that satisfies both buyers and sellers. Generally, the entire process takes about half an hour, however it can last longer in times of economic turmoil. The time of the price fixing in London coincides with the opening of the financial markets in New York, so the London afternoon price is the starting point for the commodity trading on the Comex.

Inflation

Traditionally, the value of the investment was seen to reflect monetary inflation, that is, inflation of the money supply. Since the fractional banking system under the Federal Reserve is inherently inflationary, the total amount of money in circulation has a tendency to expand, at times rather strongly.

Spot price and the Dollar

The value of the dollar reflects the soundness of the US economy. However, in a floating currency system where the dollar is only priced relative to other floating currencies, it is increasingly difficult to use currency movements as a measure of the economy. Still, precious metals are a hedge for large institutions against devaluation in the US dollar. As the value of the dollar goes down relative to other major currencies, the worth of the investment has a tendency to rise.

Mining

The only real immediate impact the investment has on the economy is in the mining sector, where individual companies may be highly sensitive to market fluctuation. Since miners make their profit from selling precious metals, their profit margins are largely determined by the prevailing market value of the commodity.

Uses

Gold is mainly used as a raw material in the jewelry, electronics, medicine and aviation industries. Any changes that affect those end markets could affect the price of the investment.

Worldwide Instability

Events such as natural disasters, political unrest and financial instability all cause the price of the investment to rise or fall. Whenever investors lose confidence in traditional vehicles such as stocks, bonds or land, they can simply cash out and invest in the commodity. This helps them secure their assets during uncertain times. Such increases in demand send the value of the asset soaring.

Inflation

Higher rates of inflation lead to elevated gold prices. The opposite is not always true, however. Deflation does not automatically lower the value of the asset.

Oil

There is a correlation between the price of oil and gold price. Rising oil prices cause an increase in inflation. That in turn prompts a surge in the price of the commodity. Political instability in oil-rich nations affects supply, which drives oil and the commodity's prices higher.

Hoarding and Disposal

There is a finite quantity of the precious metal on the planet, which helps add to its value. However, if one or all investors choose to sell their investments at once, the excess quantity of the commodity accessible would drive down the price. On the other hand, if an investor purchased large quantities of the commodity and stored it, the absence of supply would increase the price.

The Perception of The commodity

The price of the precious metal will continue to follow certain trends so long as investors have confidence in the merits and value of the metal.

Supply

Gold that can be traded on the market originate from three main sources: mining, recycling and national banks. Mining is a relatively steady source, and opening of new mines serves mainly to replace the old ones, without increasing the worldwide supply.

Demand

Gold has industrial and scientific applications, accounting for around 10 percent of the worldwide demand. Two-thirds of worldwide supplies are used in the jewelry industry. The main factor on the demand side affecting the price of the precious metal is investment. Investing in the precious metal can mean buying physical gold or related investment items.

The spot price of gold is the current price at which a particular security (gold) can be bought or sold at a specified time and place. The spot price is simply the price at which a commodity could be transacted and delivered on right now. Visit http://www.getagoldira.com/

Article Source: http://EzineArticles.com/expert/Sam_Williams/2232957



Article Source: http://EzineArticles.com/9284237

The Real Value of Gold

I bought some Mexican gold on Monday.

Old gold. Pre-World War II stuff. Two-peso coins slightly smaller than a U.S. dime that Mexicans used to carry around in their pockets - only these are not all banged up and gnarly like normal pocket change. They're all in uncirculated or "about uncirculated" condition, meaning they're really nice coins.

They each contain about a 1/20th of an ounce of gold, rounding out my coin collection that starts about 1.2 ounces per coin and decreases in size down to these tiny pesos.

I've built this collection not because they're particularly rare. They're generally not. Though they're certainly collectible, their real purpose is something altogether different - my Boy Scout-like preparation for prices that will exceed $10,000 an ounce in a currency crisis.

And I don't say that as a goldbug with blinders on. I say it as a sober-minded investor who sees a growing risk to Western currency stability and the potential that governments are forced to take some of our wealth to pare the unmanageable debts they've built up.

Gold, as I've said many times, has played a primary role in every substantial financial crisis in history - from Roman emperors devaluing the currency to wage wars and pay for governmental excesses, up through FDR's confiscation act in 1933 and Nixon taking the buck off the gold standard in the early '70s.

Today is no different. Fiat currencies are a disaster, particularly in the West. Because they're backed by nothing but government, governments feel they have free rein to spend without much resistance. So, they've accumulated tremendous debts by spending in tremendously stupid ways.

But that horse is out of the barn. Now, we just wait for what will likely be the collapse of one or more currencies, or for a central bank to announce that it will shore up its currency by backing it with gold in some fashion.

Which raises the biggest question: What is the metal really worth in a world where fiat currencies are failing and central banks have to reassess the construction of those currencies?

Well, there are some mathematically rigorous ways to answer that question - to effectively come up with a "shadow" price. And in every case, the answer puts the precious metal well into the five-figure range.

Metal Mispricing

Back when America was fully on the gold standard, every Federal Reserve note (our dollars) was redeemable for a quantity of gold. So that gives us a very simple, though intellectually honest, way to value gold today: Divide the dollar amount of Federal Reserve liabilities ($4.4 trillion, roughly) by America's official holdings (about 287 million ounces).

That simple equation says that the shadow price is close to $15,500 an ounce.

But that's just one way to honestly value gold relative to currency.

I showed attendees of our recent conference in Uruguay three other intellectually honest calculations that all put prices well north of the current level in the $1,250 range.

For instance:

Based on the M1 money supply in America, gold carries a price tag approaching $10,800 an ounce.
Use the Global Money Supply, and we're up to prices that exceed $38,000 an ounce.
And base it on America's national debt - the idea that government would revalue gold so that it could use the metal to eradicate the debt and effectively reset the economy - the value is more than $66,000 an ounce.
I am not saying gold will ever reach any of these levels.

What I am saying, however, is that gold is a fundamentally mispriced asset. It's treated by Wall Street and many economists as an anachronistic asset unworthy of investment merit in the modern world. They continue to call it a commodity though that's a misinterpretation of reality; its commodity uses are negligible, while its wealth-preservation characteristics - from jewelry to coins and bars - is unmatched for historical longevity.

Which is precisely why I added those Mexican two-peso coins to my collection.

Gold Wins in a Currency Crisis

Gold will be more valuable than it is today. As desperately as the West needs to address its fiscal woes, I see very little desire to do so at a political level. Politicians risk pushing us into a crisis of confidence in currencies. That's great for gold.

And if they decide to repair what they have befouled, then that's good for gold, too, since it will likely have a role in the prescription.

In a currency crisis, gold in various denominations will come in handy. Those little two-peso Mexican coins, at about $70 each today, might be handy for buying groceries or gasoline one day.

Next week, I'll tell you why I want to own these kinds of old, gold coins instead of bullion coins like the popular American Eagles.

As a lifelong world traveler, Jeff Opdyke has been investing directly in the international markets since 1995, making him one of the true pioneers of foreign trading. He is Investment Director for The Sovereign Society and a weekly contributor to The Sovereign Investor Daily.

Article Source: http://EzineArticles.com/expert/Jeff_D._Opdyke/1961798



Article Source: http://EzineArticles.com/9362331

Alternative Investment Opportunities Available In The Market

Traditional ways of investing would be going to shares, bonds, mainstream property, cash, and other traditional asset classes. But there are more unusual, yet highly rewarding opportunities called Alternative investment, usually embarked on by smart investors because of the risks involved in it.

Here are alternative investment ideas ranked from safest to riskiest, that are available in market:

1. Structured products

This is basically a contract with a financial institution to pay you a defined return at a defined time depending on the performance of the stock market. It's the safest of all the other alternative investments. The only way you could lose money is when the stock market is performing catastrophically badly.

2. Bridging finance

These are short-term loans used by property buyers who are expecting to get a mortgage from the bank but cannot wait for the approval. For private investors, you can invest in funds that pool bridging loans, in order to spread the risk across several borrowers. The loan is secured against the property.

3. Peer-to-peer lending

Investors meet with individuals or businesses who want to borrow money. Borrowers can get lower rates than they would be charged by a bank, while lenders can earn more money on their savings than they could from a cash account. It can be quite risky for the investors because the individual or the small business might default or become bankrupt.

4. Forestry

Returns from investing in woodland come from any increase in the value of the land and the trees on it, and any income produced by felling trees for timber. But increase in the value of the land is only good if you can also sell the forest. There are some excellent tax breaks in the market, with no income or capital gains tax to pay and exemption from inheritance tax if you hold your investment for two years.

5. Buy-to-let property

The property will form a large part of your overall wealth. You need to have at least 25% of the value of the property to use as a deposit, plus extra to cover any refurbishments and legal fees. Investors will likely face competition from professional landlords and may have to deal with rogue tenants and maintenance issues.

6. Stamps

Rare stamps will have value as long as there are stamp collectors. The most valuable can fetch six- or even seven-figure sums. Stamp values can keep on going higher, and you can search for offers for private investors.

7. Coins

Rare coins are best bought through a reputable auction house, which will provide a money-back guarantee should the coin turn out to be a forgery. As with stamps, the value is underpinned by the popularity of coin collecting as a hobby.

8. Winery

The traditional way to invest is through established wine merchants. You must have knowledge on fine wine and their exact records. More recently, wine funds have been launched which offer an alternative way to access the market. Some of these qualify for the Enterprise Investment Scheme (EIS).

9. Business Angels

When you become an angel, you invest in smaller companies that are not quoted on the stock market. Typically, you won't see any return until the business is sold or floats on the stock market. It could take years, and you could either lose all your invested money, or reap triple returns.

10. Equity crowdfunding

This is very similar to business angels, but managed wholly online. Investors can either deal directly with the company and get your name on the shares, or let the crowdfunding website deal on behalf of hundreds or thousands of investors. However, if the business you invested in does well, a bigger investor may buy it.

11. Diamonds

Gemstone-grade diamonds have increased nearly tenfold in value since the 1960s. The diamond price is much less volatile than the price of gold. But it may be difficult to access for investors because diamonds are valued subjectively by experts.

12. Carbon credits

A carbon credit is essentially a permit to release one tonne of carbon dioxide into the atmosphere. Companies that exceed their allowances are supposed to buy more credits, according to global cooperation. Private investors have been targeted by firms trying to sell them carbon credits. This is a highly specialist market and best left to professional traders.

13. Land banking

Land banking companies take a piece of land, parcel it up and sell it off to investors; hoping that once the land is earmarked for development, it will soar in value. However, there is often no development and investors are left holding a useless piece of land either in the market or overseas. A lot of land banking schemes have been stopped by the Financial Conduct Authority (FCA).

Article Source: http://EzineArticles.com/expert/Jov_Ordonia/1343443



Article Source: http://EzineArticles.com/9345591

What Is The Difference Between Investment Management and Stockbrokers?

The investment services industry can be daunting and ambiguous for individuals who seek a return on their capital. After working hard earning your wealth, it is important to understand the different services offered by professionals and what solutions fit you personally. One of the main questions we get asked here is:

"What is the difference between investment management and stockbrokers?"
Firstly, let's discuss what stockbrokers are - we all have a much better, clearer, idea of what they do and who they represent. Stockbrokers are regulated firms that offer financial advice to their clients. A stockbroker buys and sells equities and other securities like bonds, CFDs, Futures and Options on behalf of their clients in return for a fee or commission. A brokerage / stockbroker will receive a fee on each transaction, whether the idea is profitable or not.

A brokerage can specialise in any investment niche they wish for example:

FTSE All-Share stocks,
AIM stocks,
European Stocks,
Asian Stocks,
US Stocks
Combinations of the above
Straight equities,
Straight derivative trading (CFDs, Futures & Options)
The main reason why investors choose stockbrokers over any other professional investment service is simply down to control. Due to the nature of a brokerage firm, they can only execute a trade after you instruct them to do so. This means it is impossible for a brokerage to keep buying and selling securities without you knowing - known as churning for commission. This doesn't however prevent stockbrokers providing you with several new ideas a week and switching your positions to a new idea.

However, there are natural flaws with the brokerage industry is that because trading ideas can only be executed after being instructed to list a few flaws;-

you may miss out of good opportunities due to moves in the market,
you may get in a couple of days later because you were busy and not make any money after fees,
you may receive a call to close a position but unable to without your say so.
The above are examples that can happen when investing with brokerage firms, but this is due to the reliance of gaining authorisation from their clients. So if you are ultra busy or travel a lot then you could potentially miss out on opportunities to buy or sell.

What are investment managers?

Now we understand what stockbrokers / brokerage firms are about, let's discuss what investment management services can do for individuals.

Investment management firms run differently to brokerages. The core aspect to these services is that the professional investment managers use their discretion to make investment decisions. As a client of an investment management firm you will go through a rigorous client on boarding process (just like a brokerage firm) to understand your investment goals, understanding of the services being used, risk profile, angering to the investment mandate and allowing the service to manage your equity portfolio. The sign up with the service may seem long winded but it's in your best interest to ensure the service is suitable and appropriate for you. In reality, it's not a long winded process at all. Once you agree to the services offered then you will only be updated on the on-going account data and portfolio reporting in a timely manner. This means no phone calls to disrupt your day-to-day activities and allows the professionals to focus on your portfolio.

Investment management firms usually have specific portfolios with a track record, into which you can invest your capital according to you appetite for risk. These portfolios will focus on specific securities, economies, risk and type of investing (income, capital growth or balanced). All of this would be discussed prior or during the application process.

Another method used by investment management firms is different strategies implemented by their portfolio managers. These strategies are systematic and go through thorough analysis before investment decisions are made.

The fees usually associated with investment management firms can vary from each firm. There are three common types of fees and are usually combined, fees can be;-

Assets Under Management Fee - This is where you pay a percentage of the portfolio per year to the firm, usually an annual fee. E.g) 1% AUM Fee on £1,000,000 is £10,000 per year.
Transaction Fee - This is a fee associated with each transaction made through your portfolio - similar to the brokerage firm's commission.
Percentage of Profits Fee - This is where any closed profits generated over a set time will be charged to the firm. E.g) 10% PoP Fee - the firm generates you closed profit of £10,000 in one quarter - you will be charged £1,000.
The main benefits provided from investment management firms is that after the service understands your needs and tailors the service around you, it is their job to build a portfolio around you. It is also the job of the investment management firm to adhere to the investment mandate you agreed on, we'll take about this later, so you understand of the time frame given what you should expect. Another bonus why high-net worth individuals choose investment management services is because they are not hassled by phone calls every other day with a new investment idea.

The difference...

The main difference between investment management and stockbroking firms is:

Investment Managers offers discretionary services; no regular phone calls about stock ideas.

Stockbrokers give you more control as you can personally filter out ideas you think won't work.

Investment Managers offer an investment mandate; this is where the investment management service provides a document of what they are offering you in return of managing your portfolio. You will understand what exactly they are targeting over the year, based on what risk, and should they achieve it - then they have fulfilled their service. E.g) the mandate could state that the strategies used and based on 8% volatility (risk), they seek to achieve 14% capital return.

Stockbrokers do not offer an future agreements but look to deliver growth during the time you are with them. They are not bound by their performances like investment managers.

Investment management firms have a track record for all of the strategies and services used, stockbrokers do not.
Which to choose?

Both services provide professional approaches to investing in the stock markets. Stockbrokers are chosen over investment managers by people who like to be in control and receive financial advice. Stockbrokers generally do not have a systematic approach to the markets but use selective top-down approaches to select stocks.

Investment managers are chosen by investors who want an agreement on their performances over the year and understand the risk up-front. Usually more sophisticated investors that wish to take advantage of the track-record and gain an understanding of the systematic approach used by the investment management firm.

Feel free to learn more.

DISCLAIMER: The above is not considered financial advice or any endorsement to use any particular service. If you wish to use any of the services mentioned, please seek independent advice.

RISK WARNING: Spread betting, CFD, futures and options trading carries a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved. Past performance of a managed service is not a guide to future performance.

Alphaseeker Investment Management is a professional service aimed at reducing global risk and using institutional investment strategies to potentially generate growth for our private clients. To learn more find us at http://www.alphaseekerim.com

Article Source: http://EzineArticles.com/expert/John_Hollin/2101697



Article Source: http://EzineArticles.com/9334380

Computer Industry & Binary Options

The computer industry has grown at a phenomenal rate in the past few decades and everything is driven by computers nowadays. Computer industry & binary options offer many trading opportunities to traders.

Many stocks from the computer industry are offered for trading in the binary market. When you follow the stocks, you may be able to determine a pattern. These may be short term or long term patterns and enable you to place a profitable trade.

As a trader you need to pay close attention to several factors before you choose to invest in stocks pertaining to the computer industry. The strength of the company, innovation and management may be just some of the factors that need to be considered.

Industry strength - The computer industry is considered a mature industry that provides growth opportunities to both new and existing companies. The industry is strong and growing at a fast pace. The stocks of companies in this industry have provided consistent returns to their investors.

Innovation - One of the factors that differentiate this industry from others is the constant innovation that takes place. Due to this companies are able to recognize new trends easily and this helps them grow fast. As there is regular movement in the stocks of these companies' traders may be able to make quick profits.

Management - The management role in the affairs of a company should never be underestimated. When you choose to invest in a computer company, it is advisable to check the management as they can make a big difference to how the company may perform in the future. Avoid companies that have poor management.

Look at charts and use technical analysis to determine how the stock of a company moves during a particular period. If you see the price and volume going up then it is a strong positive signal that you can invest in the stock.

Similarly if you see a fall in the volume and price, you can avoid investing in the stock. Fundamental analysis can also be used to determine the strength of the stock you choose to invest.

Traders can also keep track of the expectations before they choose to invest. If the company misses the expected profit, you need to look at factors that resulted in this miss.

If the company is able to match the expectations of the market, you can choose to invest in this company as the stock may rise substantially during trading. This can help you make consistent profits.

Computer industry & binary options have grown in tandem as there are several stocks that are offered by brokers.

Traders need to keep track of the trend that exists in the computer industry, so that they may be able to place a trade successfully and make profits.

Learn more about binary options trading for successful trades http://www.top10binary.net/how-to-trade-binary-options

Article Source: http://EzineArticles.com/expert/Rahul_Shariff/340605



Article Source: http://EzineArticles.com/9357414

الخميس، 24 مارس 2016

Things You Need to Know About Intermediate & Advanced Traders

Intermediate & advanced traders choose different types of options to trade in the binary options market. Intermediate traders need to understand that it takes a lot of effort and time to master the skills needed to place a successful trade and that they may not be able to learn them in a hurry. Advanced traders may be able to maximize profits and minimize losses easily due to their experience.

Things that traders can learn from training

Training in the various aspects of binary options market can help traders get the edge when placing a trade and this can enable them to make consistent profits. One of the best ways to be trained is through other experienced traders.

This type of education is more realistic and can help you learn the various aspects of this market in a simple but effective manner.

Risk control should be an integral aspect of the training program. Most traders who invest in this market are not aware of the risk tolerance level that they can afford.
A good training should teach you how to eliminate risks of trading so that you are able to maximize the profits. You can learn when to place a stop loss order so that you are able to avoid losses.
Learn how to open and manage different types of trading accounts before you start real live trading.
You can make the choice of trading platform, options to trade and brokers depending on your knowledge and experience.
Traders can learn how and when to enter a trade. Timing is crucial for success in the binary options market and when you learn when to enter and exit the market, you may be able to increase your level of success.
Demo account

Apart from learning the basics of binary options market, traders also need to get some trading experience so that they are able to understand the different market conditions and trade successfully.

Irrespective of whether you are a beginner or experienced trader you can opt for a demo account so that you are able to learn the different strategies used for trading.
Apart from gaining knowledge about the different strategies, you may also be able to test the trading platform when you opt for a demo account.
The demo account is similar to the real live trading account in all aspects and this can help you gain valuable experience. It is advisable to choose a demo or practice account from a reputed broker so that you are able to benefit from it.
It is important that intermediate & advanced traders get good education about the binary options market before they start trading with live accounts. The market is volatile and you may not be able to survive and make profits if you do not gain knowledge and experience about the various aspects of this market.

Training and education about the binary options market can help you succeed http://www.e-futures.com/futures-trading-education.php

Article Source: http://EzineArticles.com/expert/Rahul_Shariff/340605



Article Source: http://EzineArticles.com/9357441

How to Use the Long-Shot Strategy in Binary Options Trading

The long-shot strategy in binary options trading is linked to increase in risk levels and high payout ratios. Traders make use of this strategy to place a trade as it enables them to get impressive results with just a few trades. It can also help safeguard the investments that have been made by the trader. It can be used successfully using any of the underlying assets that the broker supports.

Trades that have predetermined target prices are executed and placed in such a way that they are some distance away from the opening value.
The distance between the opening and target prices is proportionate to the pay offs you get from using this strategy.
The risk of the trade increases substantially when the target price goes far off from the opening price.
The chance that the position may expire out of the money increases substantially when the price goes further away from the target before expiry period.
The trader needs to generate a number of small wins, so that they can get a good profit.
Trading long shot

Traders can choose to use this strategy when the market conditions are volatile, as it ensures huge price surges.
Many binary options traders consider applying this after the release of a major economic data or news that has a significant impact on the market. Although most major economic data is released on specific dates of the year there are some that may be announced suddenly by the government agencies or banks.
As the underlying asset may not have been priced for such events, you may see investors making some quick trades so that they are able to adjust their portfolios depending on the changing market conditions.
The markets may see spikes in the price of assets that are been traded. The sudden increase in prices provides an ideal situation for the trader to use this strategy.
The trader can choose to initiate such a technique after they have identified a target level price that the underlying asset may have to touch at least once before expiry period.
The size of payout ratio is the distance between the opening value and the target level of the binary option.
The returns on the investment may increase in proportion to the length of the distance that has been specified.
Technical analysis can be used by the trader to determine the target price and expiry times.
When you compare this strategy with others that are used for trading in binary options, you may find that it is risky but the payoffs can get very high. You can make use of the touch option to place a trade. Depending on the size of your investment, you can choose the put option. The long-shot strategy terminates at the time of expiry.

Learn more about long shot strategy to trade successfully http://www.binarytrading.com/long-shot-binary-options-strategy/

Article Source: http://EzineArticles.com/expert/Rahul_Shariff/340605



Article Source: http://EzineArticles.com/9357444