A Mind Blowing Epiphany in Day Trading Binary Options
Day Trading Binary Options with Bonus Cash Is Mind Blowing
Lord knows I harp about trading binary options but I just had a really mind blowing epiphany about my sponsor broker EZTrader. Perhaps you my readers have already figured this out but it is only just fully coming to light inside my brain. Are you ready for it? Here it is:
Bonus Cash ROCKS!
That sounds totally obvious however what you may or may not realize is the awesome scope of this awesomeness. If you follow this blog at all you’ve likely already read the “binary hedge with call and put trades” post from September – but did you really fully understand the implications of that trading position / strategy when used at EZTrader or Binarix?
What’s Important to Remember Is That If You Are Not Taking Advantage of the Maximum % Bonus Cash You Are Missing Out on FREE EASY MONEY!
The Math Works Out Very Much in YOUR Favor
Did you work through the example I put together in September? Did it make sense to you? Good. Now if you’ll recall my post at that time the potential outcomes of that position were either 80%-95% return of capital or 60-75% profit over and above capital, all depending on the initial terms of the contract (our binary option trade example was 95% return of capital, or 75% profit). Not bad for a so called “all or nothing” trade, right?
Wait… It’s Actually Better Than It Looks
The headline is true, the trade outcome is actually better than it looks – at least it is right now. The reason being is the same reason I tout EZTrader in the first place: the flippin’ bonus cash. Hear me out:
Right now on EZTrader you can deposit new funds into your account and receive anywhere from 20% to 45% bonus cash on your deposit. Let’s presume you took the lowball route and got 20% bonus cash on a $500 deposit – so $100 bonus cash. How does that change your payouts/ROI on your $400 position (remember it was made with 2 $200 contracts) created in the binary hedge trade?
All Outcomes Result in Positive ROI!
When the bonus cash is taken into account ALL YOUR OUTCOMES RESULT IN PROFITABLE POSITIONS. Check out the new math (even better than the old math):
Previously we had bought 2 $200 positions and had outcomes of either $380 returned (a loss of 5%), or a profit (over and above $400 capital returned) of $300 (a gain of 75%). However in our example we did not take into account the benefit of the bonus cash – which effectively reduces the cost of our initial investment.
Provided we had available 20% bonus cash then our initial investment, instead of two positions costing $200 each, now costs $320 ($160 each). The two $200 trades are each made up of $160 investor capital and $40 bonus cash. When the initial trades are executed, the trader’s initial at risk capital is only $320!
What Then Are the Payouts for Trading Binary Options This Way?
Glad you asked. Since we invested only $320 of our own capital and received in return either $380 (in the case of one option being out of the money) or $750 (in the case that both binary options finished in the money) then we either made 18.75% profit on our out of the money position, or we made 118% on our in the money binary option trading position.
When You Trade Binary Options with Bonus Cash You Are Making Money Using Your Broker’s Money! What Other Industry Gives Money Away Like That? NOBODY!
Isn’t That Insane?
When bonus cash is taken into account and applied to the binary hedge with a put and call position you can’t flippin lose!
While there is no guarantee you’ll be able to create an effective call and put hedge position every time – when you do (and you have received bonus cash) you’ve essentially made free money.
That, baby, is arbitrage. Go get ‘em tiger.
PS. Juuuust a thought but you may want to think about signing up for a free subscription to this blog to receive updates like this post via email. Juuuust a thought.
