The New Method of Trading: Binary Options Trading

Brooklyn, N.Y.-based Yehuda Belsky, a seasoned veteran trader and currently the Head of Derivatives at Y Trading, LLC, is a trading expert who focuses on derivatives, equity options, and particularly on binary options. He has worked on Wall Street for many years, previously working with Innovative Capital, and then was able to observe that as a result of the 2008 financial crisis, more and more people have become interested in doing some trading as a way to increase their funds for whatever purpose, including preparing for their retirement.

Yehuda Belsky says: “I have worked in the world of trading for many years, and I have always found it far too exclusive. Hence, I have recently started to focus more on educating regular individuals who want to make trades to build up their own nest eggs. Being able to help someone put their child through college, or retire somewhere nice, is so incredibly rewarding.”

Binary options trading is a high-risk form of trading, but also a very attractive one due to the potential for high returns. With an increasing number of people considering trading on the stock markets in order to build a financial nest egg, it is very important that they also increase their understanding of the different forms of trading that are available. Binary options trading may appear incredibly attractive when, in reality, it may be one of the hardest to be successful in because, without the right knowledge, it would not be much better than gambling.

Specifically, Belsky is looking at helping ordinary, everyday people become knowledgeable about binary options trading. These are people who want to build a retirement fund, put their children through college, or save up for any other reason. He felt that doing this, and seeing the result of his work, which is that people have greater financial security, is incredibly rewarding.

Belsky wants people to understand the various investment alternatives in trading. First, there is regular options trading. He explains that options are a kind of derivative security in which the price of the option is based on the price of a particular asset. The holder of the option has the right, but is not required, to buy or sell that asset at a certain price, on or before a particular date. Here, what are often used are the call and put options, which have four key elements: the options’ long and short positions; and the buyer and the seller. Determining who is short and who is long is a complex process, but with the right knowledge, people would be able to make a profit.

Another trading option has to do with derivatives. Derivative trading generally has an emphasis on stocks, bonds, currencies, interest rates, market indexes, and commodities. In the case of commodities, people invest in raw materials, which are required to build anything that is used on the planet. These include energy, which is needed to run homes and businesses; metals, which are required to build a variety of tools; and agricultural products.

Then there are the binary options, which are Belsky’s specialty. He stresses, however, that these are known as “all or nothing trades” for a reason. This is because, with a binary option, there are only two possible options: the full investment is lost, or a fixed value is returned. For instance, if a trader believes that the price of a particular currency or commodity will be more than a particular price at a certain time, he or she would buy the binary option because if that happens the options’ price would become $100. This would result in a profit for the trader because the purchase price for an option is usually much lower than $100. On the other hand, if that does not happen, the price would be $0, where the trader loses the amount paid for the binary option.

From the above, it is easy to see that binary options trading seems to be like betting. However, through his years of experience, Belsky has come up with a number of strategies to reduce the risks. What he has done is combine these strategies to maximize the chances of winning. These strategies make use of various information, such those obtained from the news and historical data on market behavior. With that information taken into account, the probability of obtaining a profit is very much increased, although it must be noted that some risk remains.

Binary options are a legitimate form of trading that attracts advertisers, brokers, investors, and everyday individuals alike. What is attractive about these options is that people do not have to set up complex accounts or pay for a broker to be able to trade. Thus, they are readily accessible to everyday people. To be successful in it, however, it is very important to have an in-depth understanding of binary options. Thus, information on strategies would be helpful for those who would just like to gain some profit, without becoming professional traders.

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