With the implementation of our new binary options HYPER trading system, let's take a moment to explain the thinking behind the trade units and entries, arguably the two most important aspects of any trading system. If you have questions, comments, suggestions, or thoughts, please let us know so we can all clarify the rules of using the HYPER system to making money trading binary options.
What are UNITS?!
First, for all new trades placed on IT you will see a new
units amount associated with that trade. This represents a dollar amount for each individual trader, depending on the size of your trading account. The dollar amount per unit will vary from trader to trader, as do the size of the trading accounts.
Example #1:
Trader A has a ,000 trading account and decides each of his units is 0. A trade is posted for 3 units, so Trader A places the trade with an investment amount of 0.
Example #2:
Trader B has less in his bankroll, so his units are less as well. For him, each unit is . The same 3 unit trade will be an investment of (instead of 0), so his risk is less (and so is his profit potential.
The beauty of our UNITS is that they are 100% proportional and YOU decide the value of each unit!
A REAL LIFE EXAMPLE:
Here's a real life example with a trade alert from our HYPER binary options trading system.
We post an alert to buy a put on MSFT tomorrow at open with a price of 27.50. If you are able to execute a trade on MSFT the following morning at a price of 27.50 or higher, place the trade. If MSFT opens the next day with a price of 27.49 or lower, the trade is invalid. We will always update the valid trade alerts at open the following morning with the entry price to give the most accurate of trading entries and results.
Here's an example of a good HYPER alert and entry. On Monday we posted an alert to buy a call on the INTC at 22.24 at open on Tuesday for ONE unit. Here's the chart:
[chart|nid=1522]
However, at open, INTC opened at 22.04, a price lower than the posted price (which is great because we are buying a call and expect it to expire higher than the posted price. So, we changed the entry price to 22.04 at open on Tuesday with an expiration at the end of the day on Tuesday. Here's the chart of INTC at open on Tuesday showing the entry price:
[chart|nid=1527]
Remember, all trades in the HYPER trading system should be executed with an end of day expiration!
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