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Some announcements that may impact the markets this week
Big news for this week!
See Hirose News further down the page:
stripping Binary Options down to bare basics.
Below
are some announcements that may impact the markets this week:
(All
Times are in GMT)
News Event Analysis
On Wednesday
(08:30) the Bank of England' Monetary Policy Committee (MPC) will be voting on
setting interest rates. At 09:30 the BoE minutes are published - this
gives flavour to the policy discussion and includes differences of views.
Trading this type of decision carries risks along with the usual profit
potential. The Minutes, however, can give traders an edge to determine
general direction.
HIROSE News
Binaries - stripping down to basiscs.
Last week I
talked about the basic principal of Binaries. This week it's a tiny bit
of maths and how you can see your required win rate to be profitable.
The Payout Potential
With Binaries
you generally know all the variables of the trade except the actual outcome of
the trade itself.
You know:
1. The
potential risk (loss) of the trade
2. The payout percentage of the trade
3. The amount you will make when your trade is correct
4. The amount you will lose when your trade is wrong.
You can then
calculate the Required Win Rate to make consistent profits. This can be
calculated as a percentage.
T = R / (R+P)
Where T is the
Required Win Rate, R is the risk and P is the Payout Potential.
So, if you risk
a $1 trade and the Payout Potential is 80%, when you are correct you will
receive $0.8.
T = 1 / (1+0.80)
T = 1 / 1.80
T = 0.55 or 55%
This means if
every trade had a Payout Potential of 80% you would need to have a strategy
that has a Required Win Rate of above 55% to make a consistent profit.
That's just over half the trades you make need to be correct for you to make a
consistent profit.
If you would
like a Skype tutorial with screen sharing just sign up here:
http://hiroseuk.com/support/contact_us/s_sharing.php
Happy trading!
The Hirose UK Team