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Call Options! To Buy or not Buy: the Everlasting Traders' Philosophic Question!

Call Options! To Buy or not Buy: the Everlasting Traders' Philosophic Question!
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Call option is the one kind of option contracts, in which the person who buys an option, can purchase some goods or assets at the arranged price, regardless that the market price in the moment of purchase and sale will be different. If the rate hasn’t changed or has gone down, the seller of the option gains profits, as they’ve retrieved the reward from the buyer. If the price goes up and the spread will be big enough to cover the reward, the option buyer gain profit.

Contents

1.You Won’t Get Much Without Knowledge!
2.The Main Rule of the Bull Market!
3.How to Trade with Call Options?
4.Afterword…

 

You Won’t Get Much Without Knowledge!

Don’t think you won’t need any knowledge about the financial market and the economy in general at the option exchange. Conversely – they are needed even more than at the currency or stock exchange. If you can’t forecast the direction of the asset or commodity price, you will make unprofitable orders and lose your money.

Surely, it’s about speculators only. If you buy options for hedging (minimizing) risks, you don’t have to know that much. Though, isn’t it strange but usually it occurs that those very entrepreneurs who minimize risks, have knowledge, while speculators who want to earn with options don’t. And then everybody is surprised why there are so many bad rumors about the options exchange. You can train on this website. If you have some basic knowledge about trading – start studying the article “Binary Option Trading! The Step-By-Step Instruction!”, and if you haven’t ever met financial exchanges, drill the “Encyclopedia for Dummies”.call-options-1

The Main Rule of the Bull Market!

Do you know why the uptrend market is called “bull”? Because a bull, when ramming its prey, throws it up with horns, just like the uptrend of the price moving in this direction. And the rule is concluded long time ago, though, it’s not very accurate. Its essence if that when the rate grows, it does it slowly, stably and step-by-step, without abrupt jumps. I must mention that it touches only shares and precious metals prices, but not currency quotations. Thus, at low-volatility market, one’s recommended to buy tools, and not to sell them.

How to Trade with Call Options?

  1. Based on the main rule of the bull market, you are recommended to buy call options only at low-volatility periods. If abrupt changes are noticed, there is great probability of the fall, which is not good for a trader. On the other hand, options are not like forex, and with the former, you are not obliged to buy shares or currency. All you can lose is the reward for the option. As the result, if movements at the market are significant, you can buy the option only because there is solid probability of the strong price change.If this change is against you, you won’t lose much money, and if it’s toward your direction, you’ll be able to gain by far more than the reward costs.
  2. You should buy the call option in the beginning of the trend instead of when it is almost over. This rule touches not only option exchange but also forex and stock exchange. Most traders mistakenly suppose if the price moves in the same direction for a long time, it’s likely to rise or fall itself further. However, they are completely wrong. The longer is the trend, the more is probability of its change. One must consider this while trading with options.
    Dices cubes with the words SELL BUY on downtrend financial diagram. Selective focus
    Dices cubes with the words SELL BUY on downtrend financial diagram. Selective focus
  3. If you want to sell call options instead of buying them, you have to think how to insure your risks. Because if one who’s bought an option, can lose only reward, you take risks to waste everything. Thus, you'd better keep away from high-volatility market and from making very solid bets in hope that the trader will fail and won’t be able to win.

Afterword…

As for the conclusion, I must add the call option is older and more traditional, in contrast to the put option. This contract type was used long time ago, and today entrepreneurs prefer using it, if they want to hedge their risks. What’s to the speculation, both types of options are used there with the relatively equal proportion. If you decide to start gaining at option exchange, I recommend to open a 250 $-account at a broker company. And having studied a strategy from the table below before that, you will succeed and become a professional trader.

Best Binary Options Strategies!

Strategy Trend-Trading Trading Against The Trend With The Scale Of Choice Signals News-Trading Martingale
Difficulty Level (1-10)  2  4  3  1  4  1
Recommended Deposit 200$+  250$+  200$+ 150$+  300$+  500$+
Analysis Type Technical Technical Psychological Technical Fundamental Technical
Accuracy (profitableordersofall)  7/10  8/10  7/10  7,5/10  9/10 5/10
Profitability (% of the initial deposit per month)  50%  65%  55%  50%  60%  55%
 STUDY  STUDY  STUDY STUDY  STUDY  STUDY

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Technical Summary

Timeframe 2018-02-20 21:16:32 GMT
EUR/USD
1.2336 -0.0071 (-0.57%)
Summary Strong Sell
Moving Averages: Buy (0) Sell (12)
Indicators: Buy (1) Sell (4)
EUR/USD 1.2336 Strong Sell
EUR/RUB 69.7850 Strong Buy
USD/RUB 56.5621 Strong Buy
GBP/USD 1.3991 Sell
USD/JPY 107.28 Strong Buy
EUR/JPY 132.34 Buy
AUD/USD 0.7882 Neutral
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Cross Rates

Currency Demand Supply Chg %
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