order to make profits. Day traders, however, can "let their profits run" to take full advantage of large price moves. However, in normal stock trading youll usually have to wait a very long time until the value of an asset increases high enough for you to be able to sell. If youll manage to make a correct prediction, then youll be rewarded with a very large amount of money. You wont have to ever shell out 1,000 to execute a trade if you do not want. In binary options trading, the trader must decide whether an underlying asset, such as a stock, a commodity, or a currency, will go up or down during a fixed period of time. These include such strategies as bull / bear spreads and option flys.
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In forex trading, users can take trades lasting from one second to many months, since they can open and close the trade whenever they feel like. In our opinion this is exactly the other way around. When you buy an option, your choice making ability (in most cases) vanishes. A day trader's profit or loss depends on a number of factors, including entry price, exit price, and the number of shares, contracts or lots that the trader bought and sold. Because you may execute your option at any time prior to the expiry, the further away the expiration date is, the higher the contract price will.
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