Using Quarterly Ends in Binary Options -

Using Quarterly Ends in Binary Options

Binary options are the thing to look out for in today’s market. By the sheer fact that binary options are far easier to trade than more traditional options, it is gaining a lot of popularity. Compared with the amount of general knowledge one needs to keep in order to trade seriously on any platform, binary options can be traded with just the sense of direction of the general share market. This is because the binary options work on a very simple premise- it pays one depending on whether his idea of the market proves accurate or not. Admitted, that it sounds more like betting than trading to most people, but the fact remains that this needs just as much knowledge to seriously be used for real profit.

Now comes the use of quarterly ends in binary Options. “What are quarterly ends?” Well, simply put, each company which has shares being traded are required to publish reports detailing out their expected turnover each quarter. As is apparent, there are 4 quarters each year- January to March, April to June and so on. All companies release reports during the end months of these periods, in March, June, September and December. As such, these months are called Corporate Seasons due to the high volume of activity the market experiences. These are very important periods which can affect the general market pretty seriously.

You will no doubt find a lot of binary options tools for trading during these periods, but one needs to understand that the action starts much earlier than these 4 months. In fact, all companies publish the value of profit they expect during the annual quarters much before the end months. It goes without saying that projecting too low a return will discourage most investors from buying the shares for the same. So theoretically, they should project higher values, right? Wrong. The point here is, that all of these publications receive a lot of scrutiny from the best in the industry. As such, when the actual figures come out, if the result is lower that the projected value by a lot, it inevitably results in the investors losing interest in the stock. Meaning that the company can actually take a bearish trend.

Now, you need to know these figures when you consider binary options strategies. This is because, if you know the actual numbers and see that a price is going for more than the expected price, opt for the Call option. Otherwise, go for the Put option. Always know your dates. True, that you can not do anything regarding the actual trades unless the values are released, but it never hurts to be prepared well in advance so that you can go for your decision as soon as the chance presents itself.

Almost in all cases, you can find in-depth analysis by renowned traders on the internet. Always consider these. Furthermore, keep in mind that in case of quarterly trades, the trade window being presented is rather small. So you have to act fast if you want you garner a hefty profit for yourself. Remember, opportunity does not present itself. You have to strive to earn it yourself.

Leave a Reply