Grand trading options

Furthermore, we read in the broker’s terms and conditions that withdrawals can take up to 14 business days - to reach your credit card or bank account, which is kind of slow.

Free forex bonuses

Grand Trade Review - is scam or good binary options broker, grand trading options.

Also, keep in mind that withdrawals are charged a 3% fee, and dormant accounts (with no trading activity for a period of 12 months) are charged an annual maintenance fee of US$25. Another good feature of grand trade is that it offers free demo accounts for testing purposes, which is quite unusual among binary options brokers in general. Here is a screenshot of their p[latform where users can choose between demo and live mode.

Grand trade review - is grand-trade.Net scam or good binary options broker?

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Trading accounts and conditions

Trading account	min. Deposit	min. Trade size	payout
bronze	$250	$30	up to 85%
gold	$1 500	N/A	N/A
platinum	$2 000	N/A	N/A

Grand trade is a binary options broker that offers trading in currency pairs, cryptocurrency pairs and some precious metals on some web-based platform. Although the trading conditions of this provider might seem attractive, the broker is not recommended, mainly because it is not licensed and was blacklisted by belize’s financial regulator. You may read all details below.

Grand trade advantages

As advertised on the broker’s website, the payout percentage at grand trade reaches 85%, which is really attractive.

Note that betting on binary options involves a lot of chance, so if you prefer to have more control over your trades, you may check our list of recommended forex brokers offering low and attractive spreads:

Another good feature of grand trade is that it offers free demo accounts for testing purposes, which is quite unusual among binary options brokers in general. Here is a screenshot of their p[latform where users can choose between demo and live mode.

Click on the image to zoom in.

Solid selection of assets

The broker offers trading in quite a lot currency pairs, precious metals, as well as some of the most popular coins – bitcoin, ethereum, riple, monero, litecoin, zcash, which can be traded against some of the most popular fiat currencies – USD, EUR, AUD, JPY.

Grand trade disadvantages

Grand trade is allegedly owned and operated by oracle stone ltd. – a company that claims to be based in london, UK, and does not hold any license whatsoever.

As some of you probably know, binary options brokers cannot seek clients legally in most countries, as this type of derivatives are considered very risky and the closest to gambling. In the past, binary options in the UK and were under the scope of the gambling commission, and the FCA took over their oversight in january 2018. However, later that year, the european securities and markets authority (ESMA) banned binary options altogether, and the FCA made ESMA’s product intervention measures permanent. So, binary options are now illegal in the UK, as well as in all EU member states, which is not all that surprising considering that brits lost an average of GBP 87 000 a day to binary options scams, according to a FCA survey.

So, most binary options brokers operate without a valid license. Yet, the situation of grand trade is worse than this, as we found out that the broker and the company behind it are flagged by belize’s international financial services commission of belize (IFSC).

More specifically, the other brand of the company, finarium, was found to have forged their belize license as confirmed by the IFSC. In other words, from a trader’s point of view, however, investing is such a broker is extremely risky. It could be one of the many scammers on forex and binary options markets, looking to rip off misinformed investors in every possible way.

Another thing we don’t like about grand trade is that it offers trading in options that are only short term – from 30 to 120 sec. Most traders will do better if they start out with longer term options which last a few hours or days, and then work their way up to 30/60 seconds.

Furthermore, we read in the broker’s terms and conditions that withdrawals can take up to 14 business days - to reach your credit card or bank account, which is kind of slow. Also, keep in mind that withdrawals are charged a 3% fee, and dormant accounts (with no trading activity for a period of 12 months) are charged an annual maintenance fee of US$25.

Conclusion

While grand trade seems to offer high payouts and have some good features, such as the free testing service, we have serious concerns about the broker’s reliability. It doesn’t hold any license for providing financial services, and was blacklisted by the IFSC.

In an attempt to enhance consumer protection, ESMA has prohibited binary options trading throughout europe and the EEA and has restricted retail forex trading in many ways. As a result, there have remained no reliable regulators in the binary options industry. Previously, most regulated binary options brokers were holding licenses from the cyprus securities and exchange commission (cysec).

Instead of wasting your time and money on shady binary options brokers, you’d better choose a reliable companies forex and CFD provider. Many of them are authorized to operate in europe and are much more transparent about their offer and pricing.

And finally, here are the highlights of the present review of grand trade:

Pros	cons
high payouts	no financial regulation
demo accounts available	blacklisted by the IFSC
solid selection of assets	no long-term options
slow withdrawal process

Latest news about grand trade

FXTM a regulated forex broker (regulated by cysec, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

Fxpro is a broker we are particularly keen on: it’s regulated in the UK, offers metatrader 4 (MT4) and ctrader – where the spreads start at 0 pips, level II pricing and full market depth. And the best part? With fxpro you get negative balance protection.

Fxchoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

Hotforex is a EU regulated broker, offering wide variety of trading accounts, including auto, social and zero spread accounts. The minimum intial deposit for a micro account is only $50 and is combined with 1000:1 leverage - one of the highest in the industry.

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In most cases, the recommended starting amount is $1,000. This sum is sufficient for trading any instruments, can withstand a drawdown, allows to hedge volatility risks in currency markets with commodity CFD trades.

After you register, a standard trading account will be created for you automatically. Make a deposit using a bank card, a payment system or cryptocurrency. If you’re depositing via bank card, you’ll have to pass a verification procedure and provide all the necessary documents required by the processing system.

Start trading. First you’ll need to download a trading platform: MT4, MT5 (for experienced traders) or mobile app grand trade (works for everyone), choose an instrument and start trading. The most popular currency pairs for trading are EUR/USD, USD/CHF, USD/JPY, BTC/USD, ETH/USD, LTC/USD.
If you prefer trading commodities, turn your attention to oil, gas and metals, and if you’re interested in stocks and indices, you can choose from our wide selection of these instruments.
If you don’t know what to start with, visit our page for beginners or contact your personal manager through the ticket system in your private office.

What we offer

RAMM is for investment and management. Connect to the available strategies that are proven successful and create your own. The service is fully automated and easy to use, provides a high level of capital protection, allows setting limits for profit and loss, weekly profit.
Recommended initial deposit is $2,000. Minimum amount of investment in one strategy is $50. Open a RAMM account.

Choose an investment portfolio and make money from stocks of major corporations.
Readily available ideas for trading, free advice, high profit rate.
You can also take advantage of our free service and order a custom portfolio.
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We offer 500 instruments for trading: cfds on stocks, indices, metals, commodities, currency pairs, cryptocurrency.
ECN and crypto accounts are available to professional traders. Beginners may be interested in our cent account micro. For the most clients, the recommended account type is standard. Algorithmic trading is available on all accounts, including the possibility to create of your own robots in metatrader 5. The following trading platforms are available at grand capital: metatrader 4 metatrader 5 and the mobile app grand trade.

We set high requirements for liquidity providers and aim to provide the most favorable conditions for your work with the market: small fees, highly liquid instruments, immediate execution, 24/7 support. We allow using any robots and eas, high-margin trading is available. Risk diversification is possible thanks to the variety of accounts and instruments. Our clients are always under the protection of the international financial commission finacom that has an insurance fund of 20,000 euros for every client. Moreover, the funds of our clients are protected by the cutting-edge blockchain technology of serenity escrow that prevents any manipulation with the deposit.

Our support

We profit when you profit.

Grand capital is a provider of technology for trading in currency and derivatives markets since 2006. Over these years, we have become a financial partner of more than 500,000 traders all over the world. Stable and reliable operation of the company paired with its vast experience in the field allowed to implement the concept of a long-term mutually beneficial partnership. High standards of the provided services and technology earned prestigious awards from the professional community. Our work is for the benefit of the client, and our income relies on fees for using our services and instruments.

You become a part of the international trading community and use the most advanced services in the field of trading and investing. You participate in loyalty programs and get firsthand access to new instruments and technologies as they are introduced by the company. Each client gets their own personal manager who will help them become more successful. Working with a stable world-class company, you won’t have to worry about the safety of your funds.

First you need to decide whether you want to work as an independent trader or invest funds. If you plan to trade on your own, start with our classic account standard, recommended deposit amount is $500. Download the mobile app. Visit our page for beginners.

If you plan to start as an investor, open a RAMM account and start copying the top-performing strategies in the rating: it’s really a low-risk and profitable way of earning for investors of any level of experience with any budget.
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Trade and invest with grand capital broker!

Grand capital is a forex broker that provides high-quality services for online trading in financial markets to clients around the world since 2006. Trading in metatrader 4 and metatrader 5. Over 500 financial assets: currency pairs, cfds on the stocks of global corporations, indices, metals.

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Forex and CFD trading

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Forex and CFD trading

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Trade the most popular assets!
We offer a wide variety of financial instruments for online trading, making the market available to you, always and everywhere.

Grand capital is one of the most experienced brokers out there, since it was founded way back in 2006. For almost a full decade, the company has been providing valuable support to its clients and constantly upgrading its offer. Their dedication and quality have been recognized by the trading community on many occasions, and grand capital has won numerous prizes over the years. But how do you start trading with them? That’s what we want to find out here. Our experts have thoroughly tested grand capital login and in this article we bring you their feedback full of interesting information. Keep reading!

Grand capital login is actually a very simple process to complete. All you have to do is find the products section in the “for traders” tab on the broker’s website and choose the type of account you want. There are several types of real accounts (standard, swap free, MT5 etc), with each of them also being available as a grand capital demo account. The latter will allow you to test the website without risking any of your money, but if you want to start earning, a real account is what you want. Grand capital login really doesn’t require much from you; as a matter of fact, it has one of the shortest forms we’ve seen in quite some time. You will only need to provide the broker with your name, mobile phone and e-mail address, confirm that your over 18 years old and that’s it – you’re all set to start trading.

Grand capital web terminal

But grand capital login can be even simpler than that. You can create an account with the broker by using your facebook or google plus accounts. Just a few clicks and you will be trading in no time at all. And don’t worry about your safety when trading with this company, all your financial and personal information, no matter if you enter them yourself or via social networks, will be protected by a reliable SSL account. Furthermore, as you can see in our grand capital scam test, this broker is a member of two regulatory organizations in russia, so their business credibility cannot be questioned. Once you’re done with grand capital login, you will be able to start trading on a trading platform which offers profits of up to 86% and which even accepts US traders. You therefore have a great opportunity in front of you – the only thing left is to seize it.

The simplicity of grand capital login shows how well thought-out every feature of this broker’s platform actually is. Everything is designed to help traders achieve profit, with reliable personnel from the customer support ready to help you whenever you need it. The fact that you can complete the grand capital login process with your social networks accounts also shows that this broker is modern and keeps track of the latest trends, both in binary options trading business and beyond it. So go ahead, open an account with this company and see why grand capital is one of the most experienced brokers in the world.

Essential options trading guide

Options trading may seem overwhelming at first, but it's easy to understand if you know a few key points. Investor portfolios are usually constructed with several asset classes. These may be stocks, bonds, etfs, and even mutual funds. Options are another asset class, and when used correctly, they offer many advantages that trading stocks and etfs alone cannot.

Key takeaways

An option is a contract giving the buyer the right, but not the obligation, to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or before a certain date.

People use options for income, to speculate, and to hedge risk.

Options are known as derivatives because they derive their value from an underlying asset.

A stock option contract typically represents 100 shares of the underlying stock, but options may be written on any sort of underlying asset from bonds to currencies to commodities.

Option

What are options?

Options are contracts that give the bearer the right, but not the obligation, to either buy or sell an amount of some underlying asset at a pre-determined price at or before the contract expires. Options can be purchased like most other asset classes with brokerage investment accounts.

Options are powerful because they can enhance an individual’s portfolio. They do this through added income, protection, and even leverage. Depending on the situation, there is usually an option scenario appropriate for an investor’s goal. A popular example would be using options as an effective hedge against a declining stock market to limit downside losses. Options can also be used to generate recurring income. Additionally, they are often used for speculative purposes such as wagering on the direction of a stock.

There is no free lunch with stocks and bonds. Options are no different. Options trading involves certain risks that the investor must be aware of before making a trade. This is why, when trading options with a broker, you usually see a disclaimer similar to the following:

Options involve risks and are not suitable for everyone. Options trading can be speculative in nature and carry substantial risk of loss.

Options as derivatives

Options belong to the larger group of securities known as derivatives. A derivative's price is dependent on or derived from the price of something else. Options are derivatives of financial securities—their value depends on the price of some other asset. Examples of derivatives include calls, puts, futures, forwards, swaps, and mortgage-backed securities, among others.

Call and put options

Options are a type of derivative security. An option is a derivative because its price is intrinsically linked to the price of something else. If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date.

A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock. Think of a call option as a down-payment for a future purchase.

Call option example

A potential homeowner sees a new development going up. That person may want the right to purchase a home in the future, but will only want to exercise that right once certain developments around the area are built.

The potential home buyer would benefit from the option of buying or not. Imagine they can buy a call option from the developer to buy the home at say $400,000 at any point in the next three years. Well, they can—you know it as a non-refundable deposit. Naturally, the developer wouldn’t grant such an option for free. The potential home buyer needs to contribute a down-payment to lock in that right.

With respect to an option, this cost is known as the premium. It is the price of the option contract. In our home example, the deposit might be $20,000 that the buyer pays the developer. Let’s say two years have passed, and now the developments are built and zoning has been approved. The home buyer exercises the option and buys the home for $400,000 because that is the contract purchased.

The market value of that home may have doubled to $800,000. But because the down payment locked in a pre-determined price, the buyer pays $400,000. Now, in an alternate scenario, say the zoning approval doesn’t come through until year four. This is one year past the expiration of this option. Now the home buyer must pay the market price because the contract has expired. In either case, the developer keeps the original $20,000 collected.

Call option basics

Put option example

Now, think of a put option as an insurance policy. If you own your home, you are likely familiar with purchasing homeowner’s insurance. A homeowner buys a homeowner’s policy to protect their home from damage. They pay an amount called the premium, for some amount of time, let’s say a year. The policy has a face value and gives the insurance holder protection in the event the home is damaged.

What if, instead of a home, your asset was a stock or index investment? Similarly, if an investor wants insurance on their S&P 500 index portfolio, they can purchase put options. An investor may fear that a bear market is near and may be unwilling to lose more than 10% of their long position in the S&P 500 index. If the S&P 500 is currently trading at $2500, they can purchase a put option giving the right to sell the index at $2250, for example, at any point in the next two years.

If in six months the market crashes by 20% (500 points on the index), they have made 250 points by being able to sell the index at $2250 when it is trading at $2000—a combined loss of just 10%. In fact, even if the market drops to zero, the loss would only be 10% if this put option is held. Again, purchasing the option will carry a cost (the premium), and if the market doesn’t drop during that period, the maximum loss on the option is just the premium spent.

Put option basics

Buying, selling calls/puts

There are four things you can do with options:

Buying stock gives you a long position. Buying a call option gives you a potential long position in the underlying stock. Short-selling a stock gives you a short position. Selling a naked or uncovered call gives you a potential short position in the underlying stock.

Buying a put option gives you a potential short position in the underlying stock. Selling a naked or unmarried put gives you a potential long position in the underlying stock. Keeping these four scenarios straight is crucial.

People who buy options are called holders and those who sell options are called writers of options. Here is the important distinction between holders and writers:

Call holders and put holders (buyers) are not obligated to buy or sell. They have the choice to exercise their rights. This limits the risk of buyers of options to only the premium spent.

Call writers and put writers (sellers), however, are obligated to buy or sell if the option expires in-the-money (more on that below). This means that a seller may be required to make good on a promise to buy or sell. It also implies that option sellers have exposure to more, and in some cases, unlimited, risks. This means writers can lose much more than the price of the options premium.

Why use options

Speculation

Speculation is a wager on future price direction. A speculator might think the price of a stock will go up, perhaps based on fundamental analysis or technical analysis. A speculator might buy the stock or buy a call option on the stock. Speculating with a call option—instead of buying the stock outright—is attractive to some traders since options provide leverage. An out-of-the-money call option may only cost a few dollars or even cents compared to the full price of a $100 stock.

Hedging

Options were really invented for hedging purposes. Hedging with options is meant to reduce risk at a reasonable cost. Here, we can think of using options like an insurance policy. Just as you insure your house or car, options can be used to insure your investments against a downturn.

Imagine that you want to buy technology stocks. But you also want to limit losses. By using put options, you could limit your downside risk and enjoy all the upside in a cost-effective way. For short sellers, call options can be used to limit losses if the underlying price moves against their trade—especially during a short squeeze.

How options work

In terms of valuing option contracts, it is essentially all about determining the probabilities of future price events. The more likely something is to occur, the more expensive an option would be that profits from that event. For instance, a call value goes up as the stock (underlying) goes up. This is the key to understanding the relative value of options.

The less time there is until expiry, the less value an option will have. This is because the chances of a price move in the underlying stock diminish as we draw closer to expiry. This is why an option is a wasting asset. If you buy a one-month option that is out of the money, and the stock doesn’t move, the option becomes less valuable with each passing day. Since time is a component to the price of an option, a one-month option is going to be less valuable than a three-month option. This is because with more time available, the probability of a price move in your favor increases, and vice versa.

Accordingly, the same option strike that expires in a year will cost more than the same strike for one month. This wasting feature of options is a result of time decay. The same option will be worth less tomorrow than it is today if the price of the stock doesn’t move.

Volatility also increases the price of an option. This is because uncertainty pushes the odds of an outcome higher. If the volatility of the underlying asset increases, larger price swings increase the possibilities of substantial moves both up and down. Greater price swings will increase the chances of an event occurring. Therefore, the greater the volatility, the greater the price of the option. Options trading and volatility are intrinsically linked to each other in this way.

On most U.S. Exchanges, a stock option contract is the option to buy or sell 100 shares; that's why you must multiply the contract premium by 100 to get the total amount you’ll have to spend to buy the call.

What happened to our option investment
may 1	may 21	expiry date
stock price	$67	$78	$62
option price	$3.15	$8.25	worthless
contract value	$315	$825	$0
paper gain/loss	$0	$510	-$315

The majority of the time, holders choose to take their profits by trading out (closing out) their position. This means that option holders sell their options in the market, and writers buy their positions back to close. Only about 10% of options are exercised, 60% are traded (closed) out, and 30% expire worthlessly.

Fluctuations in option prices can be explained by intrinsic value and extrinsic value, which is also known as time value. An option's premium is the combination of its intrinsic value and time value. Intrinsic value is the in-the-money amount of an options contract, which, for a call option, is the amount above the strike price that the stock is trading. Time value represents the added value an investor has to pay for an option above the intrinsic value. This is the extrinsic value or time value. So, the price of the option in our example can be thought of as the following:

In real life, options almost always trade at some level above their intrinsic value, because the probability of an event occurring is never absolutely zero, even if it is highly unlikely.

Types of options

American and european options

American options can be exercised at any time between the date of purchase and the expiration date. European options are different from american options in that they can only be exercised at the end of their lives on their expiration date. The distinction between american and european options has nothing to do with geography, only with early exercise. Many options on stock indexes are of the european type. Because the right to exercise early has some value, an american option typically carries a higher premium than an otherwise identical european option. This is because the early exercise feature is desirable and commands a premium.

There are also exotic options, which are exotic because there might be a variation on the payoff profiles from the plain vanilla options. Or they can become totally different products all together with "optionality" embedded in them. For example, binary options have a simple payoff structure that is determined if the payoff event happens regardless of the degree. Other types of exotic options include knock-out, knock-in, barrier options, lookback options, asian options, and bermudan options. Again, exotic options are typically for professional derivatives traders.

Options expiration & liquidity

Options can also be categorized by their duration. Short-term options are those that expire generally within a year. Long-term options with expirations greater than a year are classified as long-term equity anticipation securities or leaps. LEAPS are identical to regular options, they just have longer durations.

Options can also be distinguished by when their expiration date falls. Sets of options now expire weekly on each friday, at the end of the month, or even on a daily basis. Index and ETF options also sometimes offer quarterly expiries.

Reading options tables

More and more traders are finding option data through online sources. (for related reading, see "best online stock brokers for options trading 2019") while each source has its own format for presenting the data, the key components generally include the following variables:

Volume (VLM) simply tells you how many contracts of a particular option were traded during the latest session.

The "bid" price is the latest price level at which a market participant wishes to buy a particular option.

The "ask" price is the latest price offered by a market participant to sell a particular option.

Implied bid volatility (IMPL BID VOL) can be thought of as the future uncertainty of price direction and speed. This value is calculated by an option-pricing model such as the black-scholes model and represents the level of expected future volatility based on the current price of the option.

Open interest (OPTN OP) number indicates the total number of contracts of a particular option that have been opened. Open interest decreases as open trades are closed.

Delta can be thought of as a probability. For instance, a 30-delta option has roughly a 30% chance of expiring in-the-money. Delta also measures the option's sensitivity to immediate price changes in the underlying. The price of a 30-delta option will change by 30 cents if the underlying security changes its price by one dollar.

Gamma (GMM) is the speed the option is moving in or out-of-the-money. Gamma can also be thought of as the movement of the delta.

Vega is a greek value that indicates the amount by which the price of the option would be expected to change based on a one-point change in implied volatility.

Theta is the greek value that indicates how much value an option will lose with the passage of one day's time.

The "strike price" is the price at which the buyer of the option can buy or sell the underlying security if they choose to exercise the option.

Buying at the bid and selling at the ask is how market makers make their living.

Long calls/puts

The simplest options position is a long call (or put) by itself. This position profits if the price of the underlying rises (falls), and your downside is limited to loss of the option premium spent. If you simultaneously buy a call and put option with the same strike and expiration, you’ve created a straddle.

This position pays off if the underlying price rises or falls dramatically; however, if the price remains relatively stable, you lose premium on both the call and the put. You would enter this strategy if you expect a large move in the stock but are not sure which direction.

Basically, you need the stock to have a move outside of a range. A similar strategy betting on an outsized move in the securities when you expect high volatility (uncertainty) is to buy a call and buy a put with different strikes and the same expiration—known as a strangle. A strangle requires larger price moves in either direction to profit but is also less expensive than a straddle. On the other hand, being short either a straddle or a strangle (selling both options) would profit from a market that doesn’t move much.

Below is an explanation of straddles from my options for beginners course:

Grand capital web terminal

Grand option binary option platform review

Introduction

Another in the new generation of regulated brokers to come out of cyprus, grand option has chosen to put a new spin of the design of their binary option broker platform. The grandoption.Com website looks more like a news site than a traditional online broker, which is a breath of fresh air. However, looking further, there are certainly some issues with how the site and broker is set up. That being said, the grand option educational center is excellent, and the trading platform itself has everything that traders need.

Software and features

The tech financial engine powers the grand option broker platform so traders know that it will be easy to use while still offering all the tools necessary to make quick, accurate trades. Despite the fact that there is no demo account, the educational academy has more then enough articles, videos, and e-books to get new traders started the rest of grandoption.Com can be a bit confusing, as some parts of the website are hard to find or contradict other parts. Along with telephone support, live chat customer service is supposedly available 24/7 but could not be reached at certain times.

Option types offered

About the standard number of stocks, currencies, indices, and commodities that you would expect from a new broker are supported; 75 at the time of our grand option review. High/low options, short-term (60-second) options, one-touch options, and boundary options are all available to trade with top-notch charts supplementing the trading environment. Exact limits for in-the-money returns are a bit hard to pin down, but it looks like most trades offer profits between 70% and 85%. Losing trades are eligible for refunds up to 10% as well.

Why most traders can make $1,000 but not $100,000

Avoid these pitfalls to make more profit more consistently

Man at foot of ladder leading up to a dollar sign on top of a mountain.

Colin anderson / getty images

Despite being able to make $1,000 or $5,000—depending on starting account size—over and over again, most day traders end up being like a recreational fisherman who catches a fish but then throws it back. Professionals, on the other hand, make $1,000 and then make another $1,000, and another, drawing an income from their trading or growing their account. The primary difference between the two may come down to overcoming common pitfalls and going from inconsistent to consistent.

Focused on the wrong thing

As a trader, your goal is to focus on the task at hand and not get caught up thinking about how big your account is or isn't. In trading, your purpose is to execute the entry exactly as practiced, place your stop loss where it is supposed to be, and adjust it accordingly—if needed—and take profit when your trading plan dictates.

As soon as you start thinking about money, your emotions get involved. You take profits too early, or losses to late, you may avoid valid trades or take trades which aren't valid. Your focus has shifted away from the only thing that can consistently make you money—following your plan.

The following problems are all related to being focused on the wrong thing but may disguise themselves in other ways.

Short-sighted thinking

Traders lose focus because they get stuck in a short-sighted mode. Say you want to get in shape, so you start going to the gym. You go for a few days, but don't notice any results. You're sore, but you don't look any better. So you stop going—you don't see the results you want. A few months go by, and you do the same thing, then quit. This routine repeats until you give up altogether or eliminate your short-sighted thinking.

When your focus is on immediate trading results—not process—you'll continually lose whatever money you make. If you start trading to make some quick cash and do, you're still in trouble. As discussed above, your focus is still on the wrong thing. Whether it's the gym or the markets, your focus needs to be on implementing and managing your plan on every single trade, every day.

If you do the right thing (follow your trading plan and make it your sole purpose to execute that plan flawlessly), your long-term goals take care of themselves.

Fear, greed, and other psychological issues

It takes less than 5 seconds of actual physical activity to open and manage a trade (set orders, and adjust them if needed). Make five trades in two hours, and you have spent probably about 25 seconds doing "actual work." the rest of the time, you're tinkering around or thinking. That's almost 7200 seconds where you aren't trading but have the opportunity to mess up if you're not focused (and that's only for two hours; trade all day and you have loads of seconds of where a slight lapse in focus can ruin a trading day).

This extreme focus is why we recommend day traders only trade for about one to two hours at a time; holding your focus for two hours is hard enough. Try to do it all day, and you'll start making mistakes.

Thinking is good while trading, but it should be laser-focused on how you will implement your plan under current market conditions. If you start thinking about how much money you are up or down, that car you want to buy, overdue bills, your losing day yesterday, or the insane winning streak you're on, you're already off track. It doesn't mean you'll lose your next trade—the market can produce lots of random winners—but you are in a state, where you're more likely to give the money back.

Nearly all psychological trading issues can be handled by removing other thoughts except for implementing the plan. Make no mistake; this is also very difficult to do. The mind is constantly wandering. As soon as it does, bring it back to focus on the task at hand. The more you do this, the better you'll get at it, the more focused you'll be and the less likely you'll be to give back your gains.

Research, plan, repeat

Most trading issues can be linked back to focusing on the wrong thing. Traders get overwhelmed thinking about various things—often money or immediate results. Many of us are taught that thinking about these things is good—it keeps us motivated. However, it is all just mental wheel-spinning.

As a trader, your only job is to research and test a plan as best you can. When you prove to yourself that you can trade it properly, focus solely on implementing that plan. In your off time, you can think about anything you want, but when you sit down in front of your computer to trade, continually bring your mind back to implementing your plan precisely. Doing that is the only way to continually produce the income your plan is capable of producing.

Experience one whole day of risk-free trading

Did you know that every 5th person in the world receives additional income by trading in financial markets? Modern investors don’t put on expensive suits and go to a stock exchange carrying extensive financial knowledge. With electronic trading being on the rise and all the information you might need being just one click away nearly anyone can trade shares, indices, currency pairs and binary options from the comfort of one’s own home.

Why now is the high time to start trading binary options?

Instrumento	bid	ask	spread	percentage
BTCUSD	32918,137	32922,445	1.3	-6.12%
ETHUSD	1312,000	1313,430	0.5	-4.84%
LTCUSD	127,76025	127,93975	0.1	-6.27%
BCHUSD	394,055	396,185	0.7	-2.85%
ETCUSD	7,149	7,399	0.1	-4.65%
XMRUSD	133,389	134,922	0.5	-4.29%
ZECUSD	82,870	84,420	0.5	-2.58%

instrumento	bid	ask	spread	percentage
eurusde	1,21373	1,21381	0.1	+0.16%
gbpusde	1,36968	1,37175	0.1	-0.15%
audcade	0,97650	0,97685	0.1	-0.85%
nzdusde	0,71808	0,71870	0.1	+0.16%
eurjpye	127,098	127,114	0.1	+0.63%
eurchfe	1,08105	1,08135	0.1	+0.39%
USDRUB	75,59179	75,90400	0.2	-0.64%
USDCNY	6,4465	6,4486	0.1	-0.40%

instrumento	bid	ask	spread	percentage
#AA	17,97	17,99	0.1	-3.54%
#CSCO	44,62	44,64	0.1	-0.53%
#MCD	208,25	208,29	0.1	+2.40%
#MSFT	232,49	232,51	0.1	-1.16%
#APPLE	131,96	131,99	0.1	-3.12%
#FORD	10,53	10,55	0.1	-1.59%
#TESLA	793,58	793,87	0.1	-5.49%

Currency exchange rates are changing every day. If you know that let’s say, dollar is now on the rise, you can make money on that! All you need is to make a prediction about the price movement.

Do you want to become a real trader and earn more than your full-time job pays you? Then make this simple step:

Open an account with GC option within the “day of risk-free trading” offer and start trading binary options today!

Abrir conta opções binárias

Options account is a live account for trading binary options. To place a trade you just need to choose a currency pair, make a prediction about the price movement (up or down), choose the expiration time (starting from 2 minutes) and push “open a new order” button.

How day of risk-free trading works?

GC option compensates the full amount of funds lost during one day of trading. The compensation can be requested every month by any client of GC option.

How much can you earn with one trade?

86 % return for EUR/USD pair

$1 dimensão de negócio mínima

1 minuto tempo de expiração mínimo

How to start trading binary options?

Create option account in your personal account and deposit any amount starting from $50.

Launch webtrader, choose an asset, set the expiration time (starting from 2 minutes) and place the trade (minimum investment amount is $10)

You’ve just made your first step on the way to become a real investor!

If you have any questions contact our customer support by livechat or by email info@grandcapital.Net

Como depositar na sua conta

If any of your trades resulted in a loss of funds, send a request from your private account stating the day you wish to receive the compensation for. The whole amount will be then deposited to your account automatically. Please mind that the compensation can only be requested once a month. Also, at least one deposit for any amount of funds should be made during that month.

Inscrições

Договор на оказание услуг заключается на территории республики сейшельские острова. Услуги компании grand capital ltd оказываются на территории республики сейшельские острова. Регистрационный №036046. Правила и условия использования сайта

Comunicação de risco: antes de começar a negociar em mercados de câmbio, por favor, certifique-se de compreender os riscos ligados ao comércio usando alavancagem e que você tem nível suficiente de formação.

Política de privacidade descreve de que forma empresa recolhe, mantém e protege os dados pessoais dos clientes

- grandcapital ltd. 24598 IBC 2018 (suite 305, griffith corporate centre, P.O. Box 1510, beachmont, kingstown, st. Vincent and the grenadines)

- grand capital ltd. 036046 (suite 102 aarti chambers, mont fleuri, victoria, mahe, seychelles)

- essas informações são destinadas a investidores fora dos estados unidos que não são cidadãos e residentes norte-americanos/japoneses.

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10 options strategies to know

Traders often jump into trading options with little understanding of the options strategies that are available to them. There are many options strategies that both limit risk and maximize return. With a little effort, traders can learn how to take advantage of the flexibility and power that stock options can provide. Here are 10 options strategies that every investor should know.

4 options strategies to know

1. Covered call

With calls, one strategy is simply to buy a naked call option. You can also structure a basic covered call or buy-write. This is a very popular strategy because it generates income and reduces some risk of being long on the stock alone. The trade-off is that you must be willing to sell your shares at a set price– the short strike price. To execute the strategy, you purchase the underlying stock as you normally would, and simultaneously write–or sell–a call option on those same shares.

For example, suppose an investor is using a call option on a stock that represents 100 shares of stock per call option. For every 100 shares of stock that the investor buys, they would simultaneously sell one call option against it. This strategy is referred to as a covered call because, in the event that a stock price increases rapidly, this investor's short call is covered by the long stock position.

Investors may choose to use this strategy when they have a short-term position in the stock and a neutral opinion on its direction. They might be looking to generate income through the sale of the call premium or protect against a potential decline in the underlying stock’s value.

In the profit and loss (P&L) graph above, observe that as the stock price increases, the negative P&L from the call is offset by the long shares position. Because the investor receives a premium from selling the call, as the stock moves through the strike price to the upside, the premium that they received allows them to effectively sell their stock at a higher level than the strike price: strike price plus the premium received. The covered call’s P&L graph looks a lot like a short, naked put’s P&L graph.

Covered call

2. Married put

In a married put strategy, an investor purchases an asset–such as shares of stock–and simultaneously purchases put options for an equivalent number of shares. The holder of a put option has the right to sell stock at the strike price, and each contract is worth 100 shares.

An investor may choose to use this strategy as a way of protecting their downside risk when holding a stock. This strategy functions similarly to an insurance policy; it establishes a price floor in the event the stock's price falls sharply.

For example, suppose an investor buys 100 shares of stock and buys one put option simultaneously. This strategy may be appealing for this investor because they are protected to the downside, in the event that a negative change in the stock price occurs. At the same time, the investor would be able to participate in every upside opportunity if the stock gains in value. The only disadvantage of this strategy is that if the stock does not fall in value, the investor loses the amount of the premium paid for the put option.

In the P&L graph above, the dashed line is the long stock position. With the long put and long stock positions combined, you can see that as the stock price falls, the losses are limited. However, the stock is able to participate in the upside above the premium spent on the put. A married put's P&L graph looks similar to a long call’s P&L graph.

What's a married put?

3. Bull call spread

In a bull call spread strategy, an investor simultaneously buys calls at a specific strike price while also selling the same number of calls at a higher strike price. Both call options will have the same expiration date and underlying asset. This type of vertical spread strategy is often used when an investor is bullish on the underlying asset and expects a moderate rise in the price of the asset. Using this strategy, the investor is able to limit their upside on the trade while also reducing the net premium spent (compared to buying a naked call option outright).

From the P&L graph above, you can observe that this is a bullish strategy. For this strategy to be executed properly, the trader needs the stock to increase in price in order to make a profit on the trade. The trade-off of a bull call spread is that your upside is limited (even though the amount spent on the premium is reduced). When outright calls are expensive, one way to offset the higher premium is by selling higher strike calls against them. This is how a bull call spread is constructed.

How to manage A bull call spread

4. Bear put spread

The bear put spread strategy is another form of vertical spread. In this strategy, the investor simultaneously purchases put options at a specific strike price and also sells the same number of puts at a lower strike price. Both options are purchased for the same underlying asset and have the same expiration date. This strategy is used when the trader has a bearish sentiment about the underlying asset and expects the asset's price to decline. The strategy offers both limited losses and limited gains.

In the P&L graph above, you can observe that this is a bearish strategy. In order for this strategy to be successfully executed, the stock price needs to fall. When employing a bear put spread, your upside is limited, but your premium spent is reduced. If outright puts are expensive, one way to offset the high premium is by selling lower strike puts against them. This is how a bear put spread is constructed.

5. Protective collar

A protective collar strategy is performed by purchasing an out-of-the-money put option and simultaneously writing an out-of-the-money call option. The underlying asset and the expiration date must be the same. This strategy is often used by investors after a long position in a stock has experienced substantial gains. This allows investors to have downside protection as the long put helps lock in the potential sale price. However, the trade-off is that they may be obligated to sell shares at a higher price, thereby forgoing the possibility for further profits.

An example of this strategy is if an investor is long on 100 shares of IBM at $50 and suppose that IBM rises to $100 as of january 1. The investor could construct a protective collar by selling one IBM march 105 call and simultaneously buying one IBM march 95 put. The trader is protected below $95 until the expiration date. The trade-off is that they may potentially be obligated to sell their shares at $105 if IBM trades at that rate prior to expiry.

In the P&L graph above, you can observe that the protective collar is a mix of a covered call and a long put. This is a neutral trade set-up, which means that the investor is protected in the event of a falling stock. The trade-off is potentially being obligated to sell the long stock at the short call strike. However, the investor will likely be happy to do this because they have already experienced gains in the underlying shares.

What is a protective collar?

6. Long straddle

A long straddle options strategy occurs when an investor simultaneously purchases a call and put option on the same underlying asset with the same strike price and expiration date. An investor will often use this strategy when they believe the price of the underlying asset will move significantly out of a specific range, but they are unsure of which direction the move will take. Theoretically, this strategy allows the investor to have the opportunity for unlimited gains. At the same time, the maximum loss this investor can experience is limited to the cost of both options contracts combined.

In the P&L graph above, notice how there are two breakeven points. This strategy becomes profitable when the stock makes a large move in one direction or the other. The investor doesn’t care which direction the stock moves, only that it is a greater move than the total premium the investor paid for the structure.

What's a long straddle?

7. Long strangle

In a long strangle options strategy, the investor purchases an out-of-the-money call option and an out-of-the-money put option simultaneously on the same underlying asset with the same expiration date. An investor who uses this strategy believes the underlying asset's price will experience a very large movement but is unsure of which direction the move will take.

For example, this strategy could be a wager on news from an earnings release for a company or an event related to a food and drug administration (FDA) approval for a pharmaceutical stock. Losses are limited to the costs–the premium spent–for both options. Strangles will almost always be less expensive than straddles because the options purchased are out-of-the-money options.

In the P&L graph above, notice how there are two breakeven points. This strategy becomes profitable when the stock makes a very large move in one direction or the other. Again, the investor doesn’t care which direction the stock moves, only that it is a greater move than the total premium the investor paid for the structure.

Strangle

8. Long call butterfly spread

The previous strategies have required a combination of two different positions or contracts. In a long butterfly spread using call options, an investor will combine both a bull spread strategy and a bear spread strategy. They will also use three different strike prices. All options are for the same underlying asset and expiration date.

For example, a long butterfly spread can be constructed by purchasing one in-the-money call option at a lower strike price, while also selling two at-the-money call options and buying one out-of-the-money call option. A balanced butterfly spread will have the same wing widths. This example is called a “call fly” and it results in a net debit. An investor would enter into a long butterfly call spread when they think the stock will not move much before expiration.

In the P&L graph above, notice how the maximum gain is made when the stock remains unchanged up until expiration–at the point of the at-the-money (ATM) strike. The further away the stock moves from the ATM strikes, the greater the negative change in the P&L. The maximum loss occurs when the stock settles at the lower strike or below (or if the stock settles at or above the higher strike call). This strategy has both limited upside and limited downside.

9. Iron condor

In the iron condor strategy, the investor simultaneously holds a bull put spread and a bear call spread. The iron condor is constructed by selling one out-of-the-money put and buying one out-of-the-money put of a lower strike–a bull put spread–and selling one out-of-the-money call and buying one out-of-the-money call of a higher strike–a bear call spread. All options have the same expiration date and are on the same underlying asset. Typically, the put and call sides have the same spread width. This trading strategy earns a net premium on the structure and is designed to take advantage of a stock experiencing low volatility. Many traders use this strategy for its perceived high probability of earning a small amount of premium.

In the P&L graph above, notice how the maximum gain is made when the stock remains in a relatively wide trading range. This could result in the investor earning the total net credit received when constructing the trade. The further away the stock moves through the short strikes–lower for the put and higher for the call–the greater the loss up to the maximum loss. Maximum loss is usually significantly higher than the maximum gain. This intuitively makes sense, given that there is a higher probability of the structure finishing with a small gain.

10. Iron butterfly

In the iron butterfly strategy, an investor will sell an at-the-money put and buy an out-of-the-money put. At the same time, they will also sell an at-the-money call and buy an out-of-the-money call. All options have the same expiration date and are on the same underlying asset. Although this strategy is similar to a butterfly spread, it uses both calls and puts (as opposed to one or the other).

This strategy essentially combines selling an at-the-money straddle and buying protective “wings.” you can also think of the construction as two spreads. It is common to have the same width for both spreads. The long, out-of-the-money call protects against unlimited downside. The long, out-of-the-money put protects against downside (from the short put strike to zero). Profit and loss are both limited within a specific range, depending on the strike prices of the options used. Investors like this strategy for the income it generates and the higher probability of a small gain with a non-volatile stock.

In the P&L graph above, notice that the maximum amount of gain is made when the stock remains at the at-the-money strikes of both the call and put that are sold. The maximum gain is the total net premium received. Maximum loss occurs when the stock moves above the long call strike or below the long put strike.