TradingPedia.com will not be held liable for the loss of money or any damage caused from relying on the information on this site. Trading forex, stocks and commodities on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. “In the money” refers to a term used to describe an options trade worth more than the price of the option contract if sold on the open market. When an option is “in the money,” a trader will exercise the option. Knowing how to calculate options profit gets easier as you practice.
This broker is either shut down, not regulated or generates a large number of complaints. The minimum amount to be deposited is $200; the maximum transaction is $5000. Deposits to funds at OptionBit can be made via credit cards, wire transfer and a host of payment plans such as Skrill, Neteller, Webmoney, Qiwi and others.
The trading platform also offers “My Trades” box that shows your open trades. OptionBit will give you everything you need to start with your online trading career. OptionBit is a binary options operator that is owned by Global View International Services Ltd which is incorporated in St. Vincent and the Grenadines. OptionBit trades currencies, commodities including gold and silver, stocks and indices. In addition to stocks, you can also trade options on currency pairs, but this is usually for more experienced traders. MarketBeat provides resources to help you answer questions such as “what is forex?
If you buy one contract with an option price of $2, you have $200 at risk. This means you have to ensure that the strike price is sufficiently below (for call options) or above (for put options) that price so you can make a profit. What will attract your attention towards OptionBit even more is the reliability that this broker offers. It has a significant customer support and it is always there for you. There are several ways in which you can contact the support – via email, phone or live chat – it is up to you to decide which one is the most appropriate.
Options Profit or Losses
An additional feature, the rollover option; permits traders to extend the option if the expiration is set in the money. A team of market analysts are available to assist traders who are seeking further insights into the market. Furthermore, OptionBit offers outstanding bonuses for experienced and new traders.
She believes the stock price will go higher so she selects a strike price on the contract for $33. This is known as the strike price — the prespecified price that activates the contract. This is why traders will notice some major differences with OptionBit’s trading platform when compared to others in the binary industry. The first thing that is noticeable is the difference in layout of the trading platform. The other thing that is different about OptionBit’s trading platform is the additional functionalities like the trading management system incorporated into the trading platform.
To see all exchange delays and terms of use please see Barchart’s disclaimer. For a list of alternative brokers, and full comparison reviews, visit our brokers page. There are no fees involved with making a deposit to your OptionBit account. One withdrawal a month is free of charge while any sequential withdrawals carry a $30 fee. An economic calendar is provided with weekly events and a glossary covers most financial terms and topics.
The 20% bonus is available for deposits of $500, and then 40% bonuses are offered for higher deposits. If you are not really good with computers and yet, you want to learn how to trade online, then it might not be a bad idea to give OptionBits platform a try. It features lots of features and services that are really useful when it comes to online trading. As we have mentioned lots of times – it is important to try everything when it comes to trading – practice makes perfect.
Bonuses/Promotions
Although trading options is frequently seen as a more sophisticated trading technique, it’s something that every trader can learn. It can be absolutely essential to trade options in volatile markets where a traditional buy-and-hold strategy may not be profitable. The formula canadian forex review that shows how to calculate option profit looks similar for call and put options. However, with a put option, you’ll subtract the underlying price from the strike price — you’ll want the strike price to be higher.
If you want to trade a specific stock at its current price:
- Another great news is the fast withdrawals – you will not have to wait a couple of days in order to get your money, because everything is faster than expected.
- I was surprised to see that market analysis of any kind was not posted.
- © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
- Traders need best charting and real-time market reports to help assess the market movements appropriately.
- That’s why it’s important to familiarize yourself with the prices that impact the profit you can make on an options trade.
Leverage increases your buying power so you questrade review can buy larger contracts and use less capital. The price of an option contract is also called the “premium.” The party who owns the option (the one who writes the option) can execute their right by buying or selling the underlying security. Since their inception, OptionBit have expanded their asset list tremendously. Now traders have a choice of more than 65 underlying assets to trade with. Apart from providing their traders with advanced trading tools, OptionBit also made it a point to support their traders with mobile trading ability.
The Basics of Options Trades
Founded in 2009, OptionBit is headquartered in Cyprus; it requires a minimum deposit of $200, a minimum trade amount of $10 and a maximum per option of $3000. The languages currently available are; English, Spanish, German, Russian, French, Arabic, Turkish, Portuguese, Korean, Romanian, Chinese and Italian. But what is truly impressive is the fact that they have gone through all the trouble to incorporate the Algobit Trading Management System with their trading platform. In other words, they have taken something good and made it even better.
Once the first trade wins, the next one will be opened for the same asset and in the same direction for the amount of the previous trade (Investment + profit) and so on. Registered users however can download a free e-book on Binary Trading to help develop a better insight of binary trading. The site also has a Quick Guide video tutorial that takes one through the journey to the binary trade. OptionBit is again not a great company when it comes to provide technical analysis and tools to its traders.