The popularity of binary options is because the risk associated with the transaction is calculated and predetermined. However, even with the calculated risk, no trader wants to be on the "losing" side of the result. Thus, different strategies are used by traders in their business more profitable binary options; one of these techniques is to cover.
Coverage is used to reduce possible losses and maximize gains incurred by any organization or individual. In the case of binary options traders use hedging to reduce the risk of investment at the lowest possible. To do this, they use methods such as call and put options, futures or short selling techniques. Through this, they are able to get their existing profit and reduce the instability of any portfolio, so that all the profit they already have, will not be lost. Therefore, a combination of coverage and binary options gives the best result and reduces the loss. Watch This : https://www.youtube.com/watch?v=gnQi4edDrPs
Binary options trading as are short-term in nature, which means that their life trading is usually an hour or a day at most. As time is a constraint here, the decisions that give the benefit of your binary options must be made carefully. This is a partial or complete coverage coverage comes in. The total price and the profit of a share has a value that can be gained before the deadline, whether through the ownership or sale of the shares. At this point, the judicious use of call and put options can take the dual benefits amount.
In binary trading, full coverage means to sell all the shares when the profit is maximized within the hour, so that the total profit can be maximized. Partial coverage is intended to sell half of the shares and keep the other half before the end of time. In this way, even if there is still some risk, but it is reduced by half the percentage in relation to the maintenance of all the shares. Partial coverage is used in binary options profits when the prediction is in line with what should the operator. Thus, the risk on the sold shares is reduced, and those that are retained can be minimized by correct prediction.
It is a binary trading strategy rather simplistic, which helps traders to make good profits and eliminating risk. Technical coverage is not only used by the binary brokers, but also by many other financial instruments such as swaps, futures, insurance, etc. When trading binary options, familiarize yourself with coverage is useful in order to use its advantages, for more information about isnured binary profits don't forget to visit our website.