Max loss:The max loss is typically limited to the debit of the trade. This occurs if the stock price closes above the highest strike or below the lowest strike. Key concepts:This is a powerful premium collection strategy, even though the trade results in a debit. That’s because it benefi...
stop-loss price: an optional price to release (sell) collateral automatically when feed_price is below it (in terms of collateral/debt), the behavior will be placing some collateral on market for sale, at the price equals tofeed_price/MSSR, until target CR is reached. (Note: MSSR is ...
Generally speaking, the returns (to the trader) for a winning binary option will be higher when the broker is an exchange broker and not and OTC broker. Other advantages (from a trader perspective) is that exchange brokers tend to offer features such as stop-loss orders and take-profit orde...
Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained ...
1: Never test a strategy by investing any amount that will make it difficult to absorb a loss. Trading does involve risk and no strategy can place the trader in the money 100% of the time. Only invest amounts that equal a small percentage of your total account funds. Your binary option...
The process you use depends on the current replication strategy for your account. For example, if you want to migrate from a storage account with LRS, you have two options:Manually move or copy your data to a new account with GZRS. Switch the replication type to GRS/...
When you use a stop-loss order in a fast-moving market, there is no guarantee that you will receive your stop price. Since the stop is a reactionary tool designed to get you out of the market immediately when you are losing money, there is a good chance the fill price will be worse ...
Strap options offer unlimited profit potential on upward price movement and limited profit potential on downward price movement. The risk/loss is limited to the total option premium paid plus transaction fees. Key Takeaways A strap option is a trading strategy with the potential for profit whether...
How It Works: Thebear put spreadstrategy is another vertical spread. In this strategy, you simultaneously buy put options at a specific strike price and sell the same number of puts at a lower strike price. Both options are purchased for the same underlying asset and have the same expiration...
Understanding how to trade strangles allows you to potentially profit no matter which way an asset’s price moves for a relatively small investment. When trading strangles, it’s important to identify your maximum potential loss, breakeven points, and exit strategy to increase your chances of turni...