The Greek: Know This Tool To Make Trading With Binary Options

  

Trading with binary options requires, on the part of the trader, the knowledge and the proper use of an absolute essential: the Greek. The Greek is a kind of indicator that helps the buyer to extricate themselves in the "jungle" in the options industry. They are essential tools to predict with a certain degree of security in how the market will evolve and as a result, may change the price of an option. Recall that the price of an option is influenced by several factors (time factor, volatility, interest rates). E 'therefore important also to know the behavior of these variables in order to perform a task correctly.

 

It 'obvious that make a calculation of this type on the Greek is not easy : it would be impossible to do so with accuracy , unless you have in-depth knowledge of the markets and their complex dynamics . There are currently many software that allow you to perform these calculations and by which it is possible to obtain data up to date in near real time . There are different types of Greek . They can be of Vega , Delta , Rho, Theta and Gamma. Let us perform a thorough analysis of each of these Greek .A Greek -type Delta is an indicator that shows the changes that affected the price of an option due to the volatility of the underlying security . The higher the Greek Vega , the greater also the advantages of the trader who buys . Usually the increases in Vega At the money options and decreases with the passage of time .A Greek -type Delta is an indicator that monitors the change in the price of the option vary depending on the price of the underlying security. This indicator refers in particular to the purchase of put options and call options . An indicator Delta may , in fact, have a value between 1 and -1: if you approach 1 , the trader will agree to buy a call option, while if the value tends to -1 , it will be cheaper to buy an option to either call .

Finally, we have the option Binary Boundary . This type of option is that to predict whether the underlying security at the time of the expiration, will be included in a given price range established at the beginning of the transaction by the broker , which establish a maximum price (and therefore a higher margin ) and a minimum price ( a lower margin ) . As the No Touch option , the option Boundary is rather complicated and therefore also offers a very high profit margins .
 which is more convenient to buy a put option .The type of Greek Theta detects the influence of the time factor on the performance of the price of the option. When an option nears its expiration date because the time factor becomes crucial indicator Theta increases. So the traders who want to buy an option to do so should , when possible, having an indicator Theta almost zero.The Greek type range , finally, is an indicator that measures the change in the Greek type of Delta with respect to changes in the underlying security. With the increase of the underlying indicator will also increase the range , which decreases , however, if the value of the title decreases also .