By roma, 11 January, 2021

The butterfly spread reacts differently to changes in implied volatility, depending on the price level on the volatility smile graph.

By roma, 10 January, 2021

Butterfly spread has certain characteristics that depend on sensitivity to price variations in the underlying asset, its delta ∆.

By roma, 6 January, 2021

Butterfly spread is a "classic" options strategy, which combines the simultaneous purchase and sale of three options with three different strikes.

By roma, 5 January, 2021

Binary option - is an option, with two possible outcomes of trading: profit or complete loss. At the time of buying an option, the trader makes a prediction (in other words, a bet) on how the price of the asset will change: fall or rise. If the prediction is correct, then the option will bring profit, and if not, then, accordingly, the loss.

By roma, 4 January, 2021

Delta hedging is a method of hedging options against fluctuations in the price of the underlying asset. Delta hedging allows you to earn through rehedging if gamma and vega are positive.

By roma, 22 August, 2020

Investing your capital in binary options trading requires strategies that have been developed in advance. Professional traders seek to develop strategies to maximize the likelihood of success and the level of profitability, while minimizing potential losses and the likelihood of those losses.

By roma, 21 August, 2020

Inexperienced traders tend to ignore the volatility when building an option position. To understand the relationship between volatility and most option strategies, it is important to read the vega in more detail. 

By roma, 21 August, 2020

Option strategy risk reversal is designed to trade the volatility skew and is formed by buying OTM put option and selling OTM call option. This strategy protects investor from a fall in the price of th