Interest rate risk associated with losses due to fluctuations in the spreads as well as the presence of windows in interest rates, due to the different periods of validity of transactions in different countries. The discrepancy amounts – it’s the difference between the amount of spot and forward (see below). To minimize the risk discount rate set limits on the total size of the discrepancies. A common approach is to divide the discrepancy based on terms of the contract with those that are associated with the contracts, which expire in more or less than six months. All discrepancies shall be entered into the computer system to calculate positions on the end date of the contract, the losses and profits. To predict any changes that may affect the situation of the windows in the discount rates must be constantly monitored.
How to Trade Binary Options
- Binary options – the world’s easiest financial instrument. They allow traders to profit from price movements across all the world’s markets
- There are only 2 types of transactions you can make with binary options: CALL and PUT.
The IQ Option platform allows our traders to make investments starting from just $1. The rate of return can be adjusted, that way losing trades will return a defined percentage into the trader’s account.
- Call – Option for rising prices. If you believe the price is about to go up, choose this option.
PUT – Option for falling prices. Buy this option when you expect the price to decrease.
If you see on the chart that the price isn’t rising or falling, that means that right now there’s a “neutral trend.” In this case, it’s best to hold off on buying this option. Consider choosing a different asset to invest in.
- Never invest more than 2% of your capital in a single option. This is the golden rule for any investor. This way you can manage your investing without losing your head…or your money
- If 60% of your transactions end up “in the money” then you will be consistently profitable, and you may gradually increase your investment amount.
- In order to improve the quality of your results, use technical & fundamental market analysis.
- Try different asset classes. If you’re not getting results with currency pairs, try stock indices. On IQ Option you can find over 70 types of assets, including Amazon, Facebook, and Google.
- Sign up for IQ Option’s free trading webinars, where you’ll find out how to analyze trends, choose a trading strategy, and personally answer any questions you may have.