The difference between futures and forward contracts

Posted by on Jun 8, 2017 in Blog |

The similarities first:

Are you someone who has recently ventured into the stock market? If your answer is a yes then we can imagine how you must be tangled in a jargonistic lingo. The problem with the shares and the stock markets is not so much the speculation because the nature of trading in the stock market itself is that but what can be unnerving to most people who are newly venturing or have spent a small time here is that they are confused with the technical lingo that the brokers and other people in the fraternity speak.

The confusion is real:

Take for instance the case of my friend Allen. At 29 years, Allen decided that his professional life was getting dull and boring and that he was looking for some exciting new breakthrough. He had a couple of friends who were traders in the stock market and he thought that both of them were having a great and interesting career graph.

Well, to cut the long story short, he ventured just like that and without much preparation. What was more? He had a tough time understanding what his seniors and colleagues told him. In the beginning he was lost among jargons but slowly with passage of time he did become relatively smarter. Thanks in big part to what he learnt on the Infinity app.

On one particular instance he was hysterical when he had to deliberate on the differences between the futures contract and the forward contract. This friend of mine thought both the contracts were one and the same. Thank God that he came over to see me before he was going on a customer call and I told him the differences.

Just imagine the funny figure he would cut if he had bluffed something into the answer. Here are the three basic differences between the two contracts:

Nature of the agreement:

Futures contract are standard contracts by virtue of the fact that they are traded at the stock exchange. Because they are set contracts there is very less flexibility in the terms and conditions of the contract.

A forwards contract on the other hand is privately agreed upon and because they are done at the instance of the parties the agreement has scope for a lot of flexibilities in its terms and conditions.

The counterparty risk:

The counterparty risk is the risk that one of the parties may default. The chance of default in a futures contract is lesser than in a forwards contract because there is no mechanism in place to offset such risks.

The date of settlement:

In a forward contract the specific performance of the contract is always slated to be at the end of the contract period. The futures contract has settlement over a couple of days and sometimes even more. The forward contract thus always has only one forward trade while the futures may have a lot of dates.

The futures contract is very popular with speculators and the hedgers are mostly interested in the forward one.

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The Difference between Plain Vanilla Options and Binary Options

Posted by on Oct 12, 2016 in Blog |

The binary options are an all or nothing asset option that you can be paid by the amount ofwhether the result of the option that expires will be “in the money” and nothing, if the option will expire is“out of money”. It is simply a yes or a no scheme is going to be the success of the binary option.Investors find the binary options enticing because of the straightforwardness of this scheme since they only have to predict if something will happen or not. It is quite simple in terms that you do not need to be a professional trader to do the binary options.

And what is the plain vanilla option? The plain vanilla option is different from the binary options. This option has no special features. It can give the holder their right to buy and or sell the underlying asset at the specified price when the expiry date comes. This is unlike the binary options that have special features. Another great place for financial news is top10binarystrategy.com, I go there every day. The binary options trading are sometimes regulated by different regulatory agencies. However, since binary options are mostly traded over the internet and sometimes are outside the regulations, there is most likely a risk of fraudulence for the investors. But with the vanilla option, you can trust it because it is regulated and mostly traded on main exchanges.

Generic Chart

As an example of binary option, you will be depositing an amount to purchase an option. If your option is out of money when it expires it means you are not going to receive anything. Now, if you are going to sell an option and the option will expire in the money you will be receiving a profit of whatever is on the trading at that time. You just need to understand that if you are not able to go to the winning side, you can never get profit.

Plain vanilla option and the binary option are different when it comes to the process that you need to choose between a yes and a no option. The plain vanilla option does not have the option that you need to choose the yes and the no. It just needs you to buy and sell the assets with the specified amount and date of expiry.Binary option has the yes and the no option and can get profits if you are on the right track. The only thing that you need to take care of is the software you will choose and the brokers that can help you as well.

The binary options Zero Loss Formulaand the plain vanilla options could be the same when it comes to placing your deposit and buying and selling assets. The things that you just need to remember is to learn the trade and be wiser on when you need to do the trading.The binary option can be good for you as a trader but there are also some traders that would choose the plain vanilla option. It is really up to you on what is best for you as an investor.

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Top 3 Advantages of Binary Options

Posted by on Oct 12, 2016 in Blog |

If you are someone who is still having second thoughts whether you are going to trade in binary options so that you can earn on the side then you have come to the right place.  In this post you will get to know the advantages that you can have when you trade in binary options compared to when you trade in other types of trading.

So one of the important advantages that you can get when you trade with binary options is that you get to trade no matter what your level of proficiency is. This is because trading in binary options is very simple and easy to use.  My favorite website for binary options is Top 10 Binary Apps, check it out. That is why a lot of people are hooked in to it since you do not need to have knowledge in trading at all before you get to trade with binary options. What you need to know is that binary options will let you trade manually and automatically that is why you do not need to have an in-depth knowledge of what is binary options trading but if you want to consistently win every trade then that is when you need to learn almost anything about it so that you will have the upper hand when trading.

Stock market chart

Then the next advantage that you will get when you trade in binary options is that you get to invest in small amounts and you get to have fast returns. This is because there are trades that would last for 60 seconds before it expires so if you win, then definitely you will get to have your returns. Also, when you know the ins and outs of binary options trading, you can have it as an advantage because you can really take advantage of those short time trades but if you want, there are also trades that would expire in a few minutes, hour or even a day, so you just need to pick your battle wisely.

And then the most important advantage that you can get is that you can have little to no contracts at all. This is because of how short some trades are that you do not need to wait for a few hours before you know if you have won or not, if you gained profit or not.  That is why if in the event that you lose, you can have enough time to cope with your loss during trading.

Therefore, if you are someone who is still having second thoughts whether you are going to trade in binary options, then those are the important advantage that you can get out of trading in binary optionsBrith Method / Brith Wealth System. So if you want to earn in trading where it has a very simple and easy system, where you can invest in small amounts of money and earn as fast as 60 seconds, and most importantly where you are not obliged to choose trades that would last a day then trading binary options is really for you. You just need to keep in mind that if you will trade in small amounts, you can only profit a small amount as well and if you will trade in bigger amounts, then when you win the trade the bigger your profit will be.

 

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The Truths behind the Misconceptions in Binary Options

Posted by on Oct 12, 2016 in Blog |

In binary options, just because a lot of people are hooked up into it and earning money that means that it is already a bluff. Well, you should know that binary options are a type of trading and it is the easiest one. That is why a lot of people are hooked on it. So if you are someone who has been having second thoughts about binary options then here are the most common misconceptions about binary options.

So the first misconception that you should know the real truth behind it is that it can support who like any day job would. This is a myth because in trading with binary options, the developer of the software can assure you at least 80% of profit when you win the trade and winning the trade will be based on your decision. Why don’t you click here and find what is the truth about all these methods? That is why there is never an assurance that by trading binary options, it can support you and your whole family as a novice trader. You need to understand that even if binary options trading is easy and simple, it needs a long-term commitment to be successful and to win constantly with it.

Illustration of the crisis concept with a businessman in panic

Then another misconception is that you need to have trading experience if you want to trade in binary optionsFitnech LTD. This is totally a misconception because binary options are suitable for everyone, in different levels of proficiency. This means that anyone who is in the right age and in the right mind can trade in binary options. Binary options are suitable for anyone since most binary options trading software has a feature for you to trade manually or for autopilot mode. That is why it is very easy for you to trade with binary options since there is an autopilot mode where the robot can trade on your behalfwhile you are still trying to learn.

And then one of the most common misconceptions about binary options trading is that it is a scam that is why you should not even try it. Well, in the first place, binary options trading were created for the users to gain much potential of the money that they have invested in a particular asset, which in most cases, that software was created and develop for so many years to make sure that it does what it is meant to do. And since it is successful, that is why a lot of people are taking advantage of it by luring those who do not have any knowledge about it when their only goal is to gain some cash on the side.

Therefore, now that you already know the most common misconceptions about binary options then you must keep them in mind so that if anyone will try to stop you from trading in binary options with one of the misconceptions as their arguments then you will be the one who will tell them the truths behind it. And once you are already starting in trading, then you can have those misconceptions as your guides still, not to do them.

 

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Most Common Mistakes in Binary Options

Posted by on Oct 12, 2016 in Blog |

When you are still fairly new in binary options then by letting you know the most common mistakes in binary options is that you will be able to avoid them as early as you can. Once you know the mistakes that are commonly committed in binary options, you will get to learn such mistakes from others and not to commit them before you learn about it. That is why if you are still a novice in binary options then here are the common mistakes that you must avoid while trading.

So the first mistake that you must avoid is not checking the reviews of the binary options trading software Qbits MegaProfit that you chose to use for trading. It is a mistake because you need to be sure that the software that you are going to use for binary options trading is legit. My guess is that if you go to Canuck Wealth System, then you will make the money you need. That is, before you  choose binary options trading  software, you need to research as much as you can about it, check on forum sites, and the reviews about the software because you will only have yourself to blame if you don’t take time to research if it’s legit or not, don’t just base everything on their site.

data center

Then another most common mistake that most traders will commit is when they do not choose a legit broker or the ones that are licensed and regulated so that you can be sure that your money is safe when you deposit it thru them and then you can also get your money when you already want to withdraw it. Choosing a broker is the same as when you choose binary options trading software where you need to know whatever info you can get about him to ensure that he is legit.

And most importantly, when you are already starting to trade, then what you need to avoid is trading without trying it out on your demo account. The demo account was created for you to use, to help you practice and strategize the things that you can do when you are going to trade live unless if the developers do not find the demo account helpful, then it should not be there in the first place. The developers would not waste time, money and effort in creating demo accounts in their binary options trading system if it would not help you in any way as a trader, whether you are a novice or an experienced trader.

Therefore, the most common mistakes that you need to avoid is not practicing your trading skills thru the demo account, not choosing a legit and regulated broker and binary options trading software. So, when you are into binary options, always be mindful about these mistakes so that you can avoid them. Overall, what you need to do is to ensure that what you are dealing with in binary options is legit, because if not, you will only have yourself to blame about it. That is why you really do need to provide enough time to research about the things that are related to binary options trading since it is your money that you are investing there.

 

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Understanding the Exchange-Traded Binary Option

Posted by on Sep 20, 2016 in Blog |

The binary option may be a good investment and profitable especially if you can easily learn how to do it and how to handle your trade. Finding a legal broker and learning the basic things about the binary option is the most important things to make it a successful investment. You must learn the movement of the trade by knowing what is affecting their performance so you can make a wise decision in making the trade. By doing this, you can have a more consistent and good profits.

Financial chart on LCD display

But what is the exchange-traded binary option?How can it be more helpful than just knowing the binary option trading? The exchange-traded binary option is regulated and can let you guess the price of the main and commonly traded commodities, forex, and stocks with a short-term hourly to weekly expirations. You do not need to buy or sell whatever asset that you will be choosing. It is just only choosing between the “all” or “nothing” options. The binary option has a fixed payment to help you know the potential profit and loss that you may have ahead of time.

The exchange-traded binary option has this transparency in pricing. It has no other party risk meaning you can be safe with the exchange-traded binary option. With straightforwardness of the binary option, it can be a very good investment to make. There is only a need to know the course of the market and be clever in guessing the right prediction when to trade. The good thing about the binary option is there are only short-period expirations, definite risk and little collateral that is required for you to trade.

It is always zero and a hundred that the binary option is being settled. But then the traders may liquidate the bond at any time before the expiration to limit the losses or locking in of gains.To understand more about the binary option, you need to make sure that you will be learning from the previous trades that you have chosen. If you think that you are not profiting from them, then you need to move to another trade and expiration. This can make you avoid more losses in the future. You need to immediately do the changes that can help your investment grow more on binary options by choosing the right trade, broker, and strategies.

The binary optionBanc de Binarywould be a great investment if being done correctly and by knowing the trades or commodities that can be more profitable for you. You need to make sure that you can make up on the next time that you are going to trade if you want the binary option to be your investment. There are so many articles, updates, and reviews that you can read to know more about the binary option, binary option broker, or binary option trading robot to ensure that you are going to be more educated about this kind of investment. It is also good to learn from your previous trades than not trying it at all.

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