What is binary option hedge?

3 thoughts on “What is binary option hedge?”

  1. We are familiar with a few nouns
    What are the binary options of binary options, also known as short -term contract transactions, also known as digital options and fixed income options. It is one of the simplest and most popular financial trading varieties. At present, there is a minimum of 5 yuan binary option, a binary option of 100 yuan, and the currency of the US dollar and euro can be used as the basic currency of the transaction to participate in the transaction.
    The development history of binary options
    In 2008 Options Clearing provided more investors with binary options transactions through OTC, American Stock Exchange America, American Stock Exchange (AMEX) and Chicago Options Exchange (CBOE ) Following it, the binary option transaction developed to the online transaction method soon, so that individual investors can easily and conveniently trade. It can be seen that the earliest recognition of the binary option in the United States can be seen. The above content comes from Baidu Encyclopedia.
    The hedge definition of binary option transactions define “hedge” English “hedge”, which contains the meaning of risk aversion and hedging. Simply speaking, hedging transactions are the transactions that are against each other. Hedge transactions are transactions that are related to two quotes at the same time, the opposite direction, the equivalent quantity, and compatible profit and loss.
    The market related to the market supply and demand relationship that affects the price of the two commodities; if the supply and demand relationship changes, it will affect the price of the two commodities at the same time, and the direction of the price change will be generally consistent.
    The opposite direction refers to the opposite direction of the two transactions. In this way, no matter what direction the price changes, it is always a loss. Of course, to be defeated by profit and loss, the number of two transactions must be determined according to the amplitude of their respective price changes, and the quantity must be comparable.

    This can rarely use hedging operations in the stock market, but it is commonly used in futures transactions and binary options transactions. This is different from the stock market and options and the rules of the market trading system.
    The binary option hedge transactions, which are related to two quotes, the opposite direction, the same number, the equivalent quantity, and the offset of profit and loss at the same time. The market related to the market supply and demand relationship that affects the price of the two commodities is the same. If the supply and demand relationship changes, the price of the two commodities will be affected, and the direction of the price change will be generally consistent. The direction of the direction refers to the opposite direction of the two transactions, so that no matter what direction of the price changes, it is always a loss. Of course, to be defeated by profit and loss, the number of two transactions must be determined according to the amplitude of their respective price changes, and the quantity is generally equal.
    The “hedge” transactions can be done in the market economy. There are many types of “hedging” transactions, foreign exchange hedging, binary option hedging, but the most suitable is the binary option and futures transactions.
    The dual option hedge for example
    . For example, I will have 100 pounds of foreign exchange after a month, but after a month, I cannot determine whether the pound will fall, so I sell a market in the marketing market. £ 100 after a month, so as to achieve the purpose of preservation. This is a foreign exchange hedging, and I can also make a long -term option on the binary option to the next month, and make a reverse list in this long -term dual option.

    Is how to carry out hedging transactions in binary options and foreign exchange markets. 1. Hedels of foreign exchange markets
    In hedging is the most common in the foreign exchange market, and intentionally avoids the risk hedge of single -line trading. The so -called single -line buying and selling is to buy short (or 揸 揸) for a certain currency, to light a certain currency, and do short -selling (empty warehouse).
    If judgment is correct, the profit is naturally much; but if the judgment is wrong, the loss will be hedge. The so -called hedging is to buy a foreign currency at the same time and be short. In addition, it is necessary to sell another currency, that is, short -selling. Theoretically, when buying a currency and short -selling one currency, the same silver code is the real hedging disk, otherwise the size of the sides will not be the same as hedging.
    The reason for this is that the world’s foreign exchange markets are computing units in US dollars. The rise and fall of all foreign currencies use US dollars as relative exchange rates. The US dollar is strong, that is, weaker foreign currency; the foreign currency is strong, the US dollar is weak. The rise and fall of the US dollar affects the rise and fall of all foreign currencies. Therefore, if you are optimistic about a currency, but to reduce risks, you need to sell a non -deny currency at the same time. Buying strong currencies and selling disadvantaged currencies, if it is estimated correctly, the US dollar is weak, the strong currency bought will rise; even if the error is estimated, the dollar is strong, and the currency bought will not fall too much. The short -selling disadvantaged currency has fallen heavy, making less erosion, and it can still make profits as a whole.
    In fact, most foreign exchange traders use hedge function just because they do the wrong direction, but they are reluctant to stop loss and condemn the defeat. They make a reverse list, which is the so -called “lock order”. The advantage of the lock order is that the loss is basically controlled and will not expand anymore. Of course, at this time, because you have more positions, the interest and commission you pay will increase. However, how popular is it -lock orders are easy to unlock! Unlocking is indeed a very difficult thing. In addition to the removal of the market repeatedly, it is easy to liberate, and if a unilateral surge or plumment occurs, the difficulty of unlocking will be greatly increased.

    . Precautions for hedge the foreign exchange market

    1. Do not forget stop loss because of hedging
    The king. Only when you do the right trend and the timing of entering is not good, you recommend that you temporarily do a processing in a hedge. In this way, you can not only ensure the security of the account, but also the hedging list can also make a profit. But if you find that if you judge the wrong trend, you must stop loss instead of hedging. Even if I thought that the big trend was not correct before, but I did not grasp the time when I entered the time. Just keep the trend opposite list.
    2. The hedge should be early
    In the general trend opposite, but the time for intervention is not good. Immediately shedding. Do not wait until the position of the position has been lost. The function will also make future unlocking more difficult. In other words, if you choose to use hedging function, you must take the initiative to use it. When you are passive, you think of it and then use it. I am afraid that things will be more complicated.
    3, when hedging, it is best to hedge 100%, that is, it is completely locked. If you make a lot of orders, do n’t because the account is just a bit ugly, just shedding 0.1 hands, etc., take the initiative to hedge, you need to make the hedging order also make money. Why do you only have such a single order? After completely hedging, the account is safer, and the profit of the hedges will be more.
    4. Reduce your transaction scale is a leisurely advice to most traders. Excessive heavy positions are the common problems of most traders. When a high position and a large single volume, the hedging will increase the transaction cost of the account sharply, and it will also make the surplus margin ratio too small, which makes it difficult for future unlocking and difficulty.
    5, do not look at the countermeasures as conventional means. Only when you look at the big trend, you can only use it when the timing is not good, and it can be used only when this situation is only available.

    The hedge of binary options. How to perform the method of foreign exchange hedging in detail, then the same reason, the dual option hedging transaction is also the same. Let’s briefly talk about it. Bar:
    Indonal options are one of the simplest and most popular financial trading varieties of operations. There are only two possible results at the expiration of binary options. Based on a target asset, the closing price of the closing price of the future (such as the next hour, one day, one week, etc.) is lower than the result of the execution price. income. In other words, as long as a financial trading product that can be operated by judging the ups and downs, then you need to hedge as long as you buy it in the opposite

    -hedge of other transaction assets such as hedging of stock transactions such as stock transactions. The hedge of fund hedge futures are all types of transaction hedging, but no matter which one of the hedges can be realized in binary option hedging transactions.

  2. There are so many binary options that are playing. If you do n’t understand the market, find the black platform, it will always lose money. So find a regular supervision such as a happy binary period!

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