Tag: hedging

Dodd-Frank act and July 15th Deadline

Financial Markets Explained
July 15th 2011 is a big day for forex brokers as well as binary options brokers across the world. Exactly one year ago, on July 15th 2010, the Senate passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). On July 21, 2010, President Obama signed into law the “Dodd-Frank Wall Street Reform Act” (the “Dodd-Frank Act” or “Act”). The Dodd-Frank Act most likely will bring about sweeping regulatory changes within the financial services industry. However, at over 2,300 pages in length, few people have read this legislation in its entirety. Of those individuals who have read the Act, few can comprehend the implications of such sweeping reform. This act/regulation will significantly change the structure of US based over-the-counter derivaties markets. The reg
Forex hedging tips explained

Forex hedging tips explained

Trading Articles
Hedging is nothing but a fancy term for insurance, often used in the financial markets despite most traders misreading this term as trying to make a profit from both rising and falling markets. The reason behind this gross misunderstanding of the term has largely to do with the term hedge funds. As one might already know, hedge funds are expected to perform regardless of the market direction; ie. Rising or falling markets. Therefore it is easy to see where this concept of hedging which is primarily all about minimizing losses by way of insurance had transformed itself into a misunderstood concept of making a profit irrespective of the market rising or falling. So what exactly is insurance? It is those small monthly premiums you pay towards either protecting your home against any theft o...

What is one touch trading in binary options

Trading Articles
One touch trading (also called “Lock In” or “Touch Digital”) is an option that gives a binary options investor a payout once the price of the underlying asset reaches or surpasses a predetermined barrier. One Touch trading options are an exciting new way to trade binary options. Because One Touch trading options offer returns of up to 500% on your trades, One Touch trading options are one of the richest trading opportunities around in online binary options trading. In this article we would like to take a detailed look at the pricing of one touch trading options, which are often also called binary or digital options, hit options or rebate options. Understanding one touch trading options One Touch trading option is a type of exotic option that gives an investor a payout once the price of t

Binary Options Hedging explained

Trading Articles
Before we speak about binary options hedging, we need to understand the basic concept of hedging. Although hedging sounds like your neighbor's hobby who's obsessed with his topiary garden full of tall bushes shaped like giraffes and dinosaurs, hedging is a practice every investor should know about. There is no arguing that portfolio protection is often just as important as portfolio appreciation. Like your neighbor's obsession, however, hedging is talked about more than it is explained, making it seem as though it belongs only to the most esoteric financial realms. Well, even if you are a beginner, you can learn what hedging is, how it works and what hedging techniques investors and companies use to protect themselves. The concept of Hedging in trading? The best way to understand hedging...