A binary option, also referred to as a digital option or an all-or-nothing option, is an option in which pay-out is determined at the onset of the contract. The trader receives a fixed amount of return if the option expires in-the-money, irrespective of how much the price of the underlying asset has moved. The trader never actually owns the asset. It is the security upon which an options’ contract is based.
Binary options have 2 outcomes: profit or loss. If the underlying stock matches or exceeds the predetermined threshold or guide strike price, the trader will receive a fixed payout. As the value of the payout is decided at the beginning of the contract, it will not be affected by the scale of the movement.
What this means is if you think the price will fall from £10 to £9.99, whether the price falls to £9.99 or £0.99, you will get the same return.
There is always a risk associated with binary options trading, and even the most experienced trader will not finish in the money every time. Trading binary options is a long term investment, not a get-rich-quick scheme.
How vfxAlert Work
Reversal - strategy is based on the basic axiom of the market, the price never moves in the same direction. The algorithm strategy is calibrated on the history of quotes, defining terms of price reversal, then the signal is given when reaching this turning point. The strategy works against the trend.
Trending - strategy is based on trend's power levels, these levels are calculated on historical data for each currency pair separately.
Short-term - strategy based on RSI indicator.
Strike price - When you open CALL position - current price should be lower than strike price. When you open PUT position - current price should be higher than strike price.
The amount of time since the appearance of the signal— ”min:sec”
Power – probability of a positive result.
(CALL) The price will be higher than strike price(2) through the expiration time
(PUT) The price will be lower than strike price(2) through the expiration time
Buttons CALL / PUT – Open position by one click. buttons enabled only if broker connected to vfxAlert. (doesn't support any more)
Heatmaps - special statistics of profitable signals based on market trends.
Examples how to use
Excellent moment for open position CALL on a signal EURUSD. The price movement is not very strong, so you should consider buying an option with longer expiry 25-40 minutes. Heatmap show a good results.
Signal CALL on EURGBP — The power of signal is low but heatmap show a good results on M5,M15, M30. I give 65% to win.
Signal PUT GBPJPY— The power of signal is good but heatmaps show bad results. Do not open position on this situation.
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