Table of
Contents
1 Why EZTrader? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03
1.1 How a...
EZTrade
r
EZ Trading Patform
Why EZTrader?
How about an EZ
answer to a simple
question
EZTrader offers the highest payouts available in on-line trading...
03
Our Customer
Service:
EZTrader offers multi-lingual round-the-clock professional customer
service, available through phone...
04
Simplicity
EZTrader always makes it
simple
EZTrader offers the highest payouts available in online trading,
arriving up to...
05
Ease
Binary options are easy to access, highly-dynamic form of options
trading. You can trade a binary option at any time ...
!
The EZTrader Platform
Image Credit or explanation: Credit or Picture Explenation. Credit or Picture Explenation.
Credit ...
When Trading Binary Options you have 3 possible
outcomes:
In the money: means the option has expired in the
direction you ...
08
Get to know our assets:
“Assets in the global market are divided into 4 main groups; these
are currencies (also known as F...
Indexes or Indices, are baskets of pre-selected stocks that are
combined together to represent a section of the market. Ea...
Let’s go a little deeper into this…
CALL: A call option is a trading choice that provides a user with a specified amount
w...
Deposits & Minimum trading amount
There is a difference between the minimum amount required to open an
account and the min...
13
The Trading process:
If we start thinking of
trading as puzzle pieces,
we can build a solid
understanding so that we
can p...
2. Choosing the Expiration
Selecting your expiration time is part of your fundamental analysis, as you
are deciding when t...
for an expiration time on the EZTrader platform, either choose end of
the hour, end of the day or for some assets the end ...
3. The Prediction
Depending on market data and other information used in guiding
your prediction, either a call or a put o...
Some Analyzing Techniques:
1. Using Economic calendar:
A good way to enhance the probability of your trading success is
ap...
Statements made by the Federal Reserve chairman regarding the Federal
Reserve’s monetary policy, which has an enormous eff...
2. Fundamental Analysis:
Mainly used when trading on stocks, a fundamental analysis means
performing a thorough review of ...
3. Technical Analysis:
Technical analysis is all about recognizing trends through market
statistics. These statistics are ...
2. Hedging Strategy (also known as pairing):
This binary options strategy enables you to take advantage of a window
of opp...
Knowledge gained from the mean reversion strategy and decide to place
a put option on the value of the index.
5. Pattern R...
The mean reversion strategy heavily applies to stocks and indices:
Since the performance of both is highly sensitive to mo...
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Ez trader ebook

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EZTrader was established in 2008, and offers traders a binary options trading platform

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Ez trader ebook

  1. 1. Table of Contents 1 Why EZTrader? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03 1.1 How about an EZ answer to a simple question. . . . . . . . . . . . . . . . 03 1.2 Our Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 1.3 The Advantages of Binary Options . . . . . . . . . . . . . . . . . . . . . . . . . . 04 2 Simplicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 2.1 EZTrader always makes it simple. . . . . . . . . . . . . . . . . . . . . . . . . . . 05 2.2 Ease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 2.3 Making Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 2.4 The EZTrader Platform . . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . 07 3 Get to know our assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09 3.1 The basics of Binary Options . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 10 3.2 Deposits & Minimum Trading amount . . . . . . . . . . . . . . . . . . . . . . 12 3.3 The Trading process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.4 Analyzing Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 3.5 Trading Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
  2. 2. EZTrade r EZ Trading Patform
  3. 3. Why EZTrader? How about an EZ answer to a simple question EZTrader offers the highest payouts available in on-line trading, arriving up to 95% & available in various expiration times, ranging from hourly, daily or weekly options. EZTrader’s highly advanced trading platform has made trading easiest as possible in every step of the way, from registering, depositing, trading or withdrawing your funds. The platform offers about 100 global assets, including some of the world’s leading stocks, indices, currency pairs & commodities. Being able to trade on assets from across the globe allows you to trade virtually 24 hours a day, while enjoying the financial opportunities of different asset categories & regions. Aspiring to expand its traders’ knowledge & skills, EZTrader also provides its users with a thorough trading guide, beginner’s tutorial and other advanced trading tools, including information on stock exchanges and trading hours, alongside daily & weekly financial reviews of global markets.
  4. 4. 03
  5. 5. Our Customer Service: EZTrader offers multi-lingual round-the-clock professional customer service, available through phone, chat or call-back. Our skilled account managers & costumer support representatives will happily assist you with any question you may have. The Advantages of Binary Options: Binary options are one of the most interesting money making vehicles found in options trading today. With their simplicity, potential for large profits, and quick and easy trades, they have many distinct advantages over other types of options trading, including traditional ones. Although conventional trading still has strength, binary options are simply easier and have less risk. And most of all they are more enjoyable form of options trading & enables you to achieve significant financial revenues quickly.
  6. 6. 04
  7. 7. Simplicity EZTrader always makes it simple EZTrader offers the highest payouts available in online trading, arriving up to 95% & available in various expiration times, ranging from hourly, daily or weekly options. EZTrader’s highly advanced trading platform has made trading easiest as possible in every step of the way, from registering, depositing, trading or withdrawing your funds. The platform offers about 100 global assets, including some of the world’s leading stocks, indices, currency pairs & commodities. Being able to trade on assets from across the globe allows you to trade virtually 24 hours a day, while enjoying the financial opportunities of different asset categories & geographical regions. Aspiring to expand its traders’ knowledge & skills, EZTrader also provides its users with a thorough trading guide, beginner’s tutorial and other advanced trading tools, including information on stock exchanges and trading hours, alongside daily & weekly financial reviews of global markets.
  8. 8. 05
  9. 9. Ease Binary options are easy to access, highly-dynamic form of options trading. You can trade a binary option at any time of day or night, seven days a week. You can complete the transaction from any computer in the world; so long as you have an internet connection, this is one of the great features of the EZ- Trader Simple Platform. You can also trade through your smartphone or tablet, using EZTrader’s highly innovative mobile trading applications, allowing you to keep on trading anytime, anywhere. Making Money Binary options have one of the highest rates of returns available on the open market. As most forms of traditional stock options must mature over time in order to redeem possible earnings; binary options have an average rate of re- turn ranging from 75% to 81%. EZTrader provides the highest payouts available in the binary options trading world, in some cases up to 95%! Following the EZTrader philosophy and method, you can be making money with little education and advanced knowledge. Within a short time from registering on the EZTrader platform you could be making “in the money” trades and counting your profits. It is fast and easy to start making that extra money you need. 06
  10. 10. ! The EZTrader Platform Image Credit or explanation: Credit or Picture Explenation. Credit or Picture Explenation. Credit or Picture Explenation. Credit or Picture Explenation. Credit or Picture Explenation. Trading on EZTrader’s platform is simple & easy: First, Choose a Category from the drop-down menu. Then, Select the Asset from our extensive asset list & choose an expiry time. Select Call if you think the asset’s value wil increase by the options expiration time, or Put, if you believe it will rather go down. Enter a Trading Amount and click Execute. All you have to do now is waiting for your option to expire. 07
  11. 11. When Trading Binary Options you have 3 possible outcomes: In the money: means the option has expired in the direction you have predicted; either up if you chose Call or down if you chose Put. At the money: means your asset’s market value stayed exactly the same as its original strike price (the value in price of the asset when executing the option). Out of the money: Means the asset’s value has moved in the opposite direction that you have predicted.
  12. 12. 08
  13. 13. Get to know our assets: “Assets in the global market are divided into 4 main groups; these are currencies (also known as Foreign exchange or Forex), commodities, stocks and indices. Each of these groups belongs to an association of exchanges and markets.” Stocks: One of the most popular traded assets across the globe, Stocks represents an organization’s trading ability on the stock exchange. The EZTrader platform offers a selection of stocks from a wide range of industry categories and global markets. This includes stocks in the technology sector (Apple, Google, Facebook), Banking (HSBC, Barclays) Pharmaceutical, retail and many more. 09
  14. 14. Indexes or Indices, are baskets of pre-selected stocks that are combined together to represent a section of the market. Each index moves up and down based on the value of its selected stocks. The most famous of these are the S&P 500 or the Dow Jones in the US, the UK FTSE100 or the German DAX. Currency pairs or Forex, are where all the global currencies that are exchanged or traded are valued against each other. On the EZTrader platform you can trade options on currency pairs such as the USD/JPY, USD/EUR and many more of the world’s leading currency pairs.* Commodities are items that are consumed for the most part, such as food, energy and metals. EZTrader provides you with the ability to trade options on Gold, silver, copper & oil*. The Basics of Binary Options Choosing a Call / Put option When trading options, there are two important terms you should know; we can refer to these as predictions. They are known as “Call” and “Put”. These are essentially your prediction on which way the asset is going to move; if you think an asset will rise in value upon expiration time, you should place a “Call” option. If you think that the asset is going to drop in value, you should place a “Put” option on it. 10
  15. 15. Let’s go a little deeper into this… CALL: A call option is a trading choice that provides a user with a specified amount when a security is above the strike price upon expiration. Traders use this strategy when they believe an asset will rise in price withina pre-determined period of time. In this scenario, the trader is “in the money” when the price of the option is greater than the strike price. For a binary call option, if the expiration price is below the strike price then there will be no payment to the trader. However, EZTrader does provide its traders with a certain refund in case of this outcome, allowing you to keep on trading & achieve better results on your next trade. Traders usually take a binary call option position in a number of instances; when markets are bullish, securities such as currencies, indices and stocks tend to be on the rise. Positive economic conditions can be the cause of these rises or internal gains from an organization. It is the reason why it is important for traders to be aware of how the market is moving. PUT: Contrary to a Call option, in a binary PUT option the trader predicts that the specific security will fall in price prior to expiration time. A put option can also be defined as a trading choice which provides a user with a specific payout when a security is below the strike price upon expiration. This strategy is used by traders when they believe an asset will go down in price within the pre-determined time period. In traditional trading terms, this resembles a short strategy as it enables traders to identify a bearish market. For a binary put option, if the strike price is above the price at expiration, there will be no payout to the trader, but EZTrader will still usually provide with a certain refund. Traders usually take a binary put option position in a number of instances; When markets are bearish, securities such as currencies, indices and stocks tend to be volatile and falling prices tend to occur. Traders need to be aware of these movements in the markets, especially in the binary options area. 11
  16. 16. Deposits & Minimum trading amount There is a difference between the minimum amount required to open an account and the minimum amount required per trade: When you open an EZTrader account, you are simply depositing funds into a secure protected account, just like you do at a bank. The funds are yours and kept under your name. These funds are yours to withdraw or trade with; In order to start trading you need to have an EZTrader account, the second thing you'll need is an available funds on this account, for now traders cannot execute trades without available funds in their account. After your account has been funded the funds are deducted from your account each time you make a trade. When you make successful trades, the profits are added into your account. You can make trades for as little as $25 or up to the balance you have in your account, with a maximum per trade limit at $3000. Your funds are always protected with highly advanced security and encryptions; no one except you get an access to your funds. 12
  17. 17. 13
  18. 18. The Trading process: If we start thinking of trading as puzzle pieces, we can build a solid understanding so that we can put these pieces together, which is actually called a strategy, to make a profitable trade. Underlying asset Choosing the expiration time Prediction Determine your investment amount and execute 1. The Underlying Asset This is the first component to any trade; choosing an asset. There are 4 groups of assets; stocks, indices, currencies and commodities. The best way to pick an asset is to first pick several assets that interest you and start learning about their movements in the financial markets. You can either focus on one asset or one sector or a compilation of many sectors - the choice is yours. Keep it simple; find assets that have relationships with each other. You can always add more later on, or change entirely. You cannot start making a trade until you have selected an asset. 14
  19. 19. 2. Choosing the Expiration Selecting your expiration time is part of your fundamental analysis, as you are deciding when the markets will move. EZTrader has made this simple for you also, you only have three choices 15
  20. 20. for an expiration time on the EZTrader platform, either choose end of the hour, end of the day or for some assets the end of the business week. 16
  21. 21. 3. The Prediction Depending on market data and other information used in guiding your prediction, either a call or a put option is determined. If you think the asset will rise above the strike price you should place a call option. If you think the asset will fall below the strike price, place a put option. The question is how this prediction is made, so that it is not based on just guessing. This is where education, knowledge, training, market insight and research are important. For this matter we will provide you with some essential binary options trading analysis techniques as well as trading strategies in the following chapter. 4. Determine your Trading amount & execute Always use good money management when determining your trading amount. Once you have entered your trading amount make sure you have clicked the "Execute" button as your trade is not valid until it has been executed. 17
  22. 22. Some Analyzing Techniques: 1. Using Economic calendar: A good way to enhance the probability of your trading success is applying some fundamental analysis to your binary options trading strategy and in particular using the economic calendar: The economic calendar provides you with a timetable of decisions, publications and announcements that affect economies all around the globe. Often the markets react to these announcements and publications of data and this is where the keen-eyed Binary trader can cash in. By simply using the calendar, tracking the events that are due, the forecast and previous results one can determine the effect of the actual results on the market, whether it be a negative or positive effect. You can be ready to make the trade seconds from the release. Following the announcements are generally short periods of volatility as the markets evaluate the data. If the market response positively to a certain event or announcement made by a company than the stock price will probably increase, whilst when the market respond negatively the prices decrease. Knowing which events or announcements are important to each company, index or market sector and the effect it is on the asset's value may need some research, but the effort will surely pay off… A good example of using an economic calendar when trading on the US dollar, also called the greenback, is to watch employment figures, released on the first Friday of each month. If these are better than predicted, markets will usually go up and the value of the U.S Dollar will increase against most other currencies, similarly, if you watch manufacturing reports or durable goods data. As America is a big oil importing nation, an increase in oil production will drive up the cost of oil. Also, the publication of key indicators like interest rate decisions will have an immediate effect upon a currency’s price as do key statements by leading figures in the global financial world, such as
  23. 23. Statements made by the Federal Reserve chairman regarding the Federal Reserve’s monetary policy, which has an enormous effect on the global markets.
  24. 24. 2. Fundamental Analysis: Mainly used when trading on stocks, a fundamental analysis means performing a thorough review of your asset. This includes a detailed review of the firm’s financial statements, market share, overall management structure, competitive advantages and its competitors. When applied to future contracts and currency pairs, fundamental analysis focuses on other factors such as the stability of the economy, interest rates and the unemployment rate. If you wish to use this type of analysis you’ll need to perform it on both historical and current data of your chosen asset, which will help you get a bigger picture of the asset in order to determine the potential change in its value by the expiration time. Fundamental analysis can also be helpful if you want to learn how an asset usually reacts to market activities such as quarterly financial reports or other macro data published. Looking at how the asset has reacted to such events in the past may help you in predicting its future direction following such events. 19
  25. 25. 3. Technical Analysis: Technical analysis is all about recognizing trends through market statistics. These statistics are usually past prices and volume. With this type of analysis, a trader will use market trends to predict the future movement of his chosen asset. The goal here is not to assess the current value of the asset but to establish patterns of movement in order to better predict its future activity. The premise behind Technical Analysis is that once a price trend is established, future price movements will be easier to determine. Technical analysis is largely used when trading on stocks or indices, which are operating in a volatile market. Learning how prices have moved historically following a change in the market helps traders to speculate if a similar pattern is likely to occur when changes like these take place, related either to the stock or the market in general. Some Trading Strategies: 1. Knock-on effect: One of the main strategies commonly used by traders in the binary trading community is the knock-on effect strategy, which requires deep understanding of financial market’s inter-relations as well as binary options signals. Also known as ‘market pull strategy’, the concept behind this strategy is that the movement of one option will likely have an effect on another option. Monitoring interrelations in the financial market helps the trader in deciding whether to place a CALL or PUT option on a certain asset, based on changes another asset has experienced. 20
  26. 26. 2. Hedging Strategy (also known as pairing): This binary options strategy enables you to take advantage of a window of opportunities in order to maximize your profits with a lower risk level. For example, if you’ve placed a call option on a certain stock and your trade was successful. If you want to place another trade on the same stock but are concerned that it is likely to start declining, you can then implement a hedging strategy by pairing a put option on the stock alongside a call option on that same asset. This will allow you to hedge against both eventualities and safeguard your initial return. 3. Straddle Strategy With a straddle strategy, a trader will be looking to place a Put option as high as possible and then when the market drops, to place a Call option on that asset. For instance, a trader could place a binary put option on a certain market index which he believes is about to fall in the next couple of hours, and then as soon as it starts to show signs of declining further, he would place a call option on it. This way the trader can take advantage of the value fluctuations of that certain asset, and will have at least one trade expiring "in the money". 4. Risk Reversal Strategy This strategy requires an understanding of an asset’s historical performance and sensitivity. If an asset is heading in a direction which is not typical for it, a trader may place a trade on it, assuming it will likely change course within the near future. For instance, if a certain asset is traded at an unusually high price in your opinion, you can implement a risk reversal strategy and execute a Put option on the asset, as you believe it will soon change direction. For instance, let’s say that after conducting research you have identified that the value of the NASDAQ is 3,200.00 over the past year. If the value of the NASDAQ is currently trading at 3,300.00 you can take your 21
  27. 27. Knowledge gained from the mean reversion strategy and decide to place a put option on the value of the index. 5. Pattern Return strategy: Used by both traditional and binary options traders to determine the movement of an asset or of the overall market, the goal with a pattern return strategy is to use statistical techniques to help you understand the price movements of the asset. The calculation here follows the momentum of the asset’s price, as the rule of the theory is that momentum changes direction before the actual value does. Applying this strategy means you should first choose an asset, preferably a stock. Then Select an appropriate timeframe that accurately reflects the price range of the asset. After looking at the stock and its fluctuations in values, for let’s say a three-month period, you should Log the highs & lows of the asset over that specified time period. By looking at the performance of the stock over this period, you could see for example that the stock has reached a three-month low of $98.00 in January and a high of $196.45 in February. Following these steps, you can use this information to assess how the closing price compares to the price range. The outcome of this analysis will help you to understand if the asset is likely to rise or fall in value compared to its historical patterns. 6. Mean Reversion Strategy The mean reversion strategy suggests that the prices of assets usually retract back towards a mean – or average. In traditional trading, the average can be the asset’s historical average of the price or the historical return. To use this strategy you need to identify an asset’s average and then determine if the asset’s price is likely to settle back at this value within the given period of time. The idea behind it is heavily linked to the view that market performance move in cycles. So, after you perform research on your chosen asset, you need to understand what the “norm” is for that particular asset in order to determine what the mean value would be for that asset. 22
  28. 28. The mean reversion strategy heavily applies to stocks and indices: Since the performance of both is highly sensitive to movements in the wider economy, their value often reverts back to the mean over time. For instance, let’s say that after conducting research you have identified that the mean value of the NASDAQ 100 is 3,200.00 over the past year. If the value of the NASDAQ is currently trading at 3,300.00 you can take your knowledge gained from the mean reversion strategy and decide to place a put option on the value of the NASDAQ. 23

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