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Table of Contents 1 Why EZTrader? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03 1.1 How about an EZ answer to a simple question. . . . . . . . . . . . . . . . 03 1.2 Our Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 1.3 The Advantages of Binary Options . . . . . . . . . . . . . . . . . . . . . . . . . . 04 2 Simplicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 2.1 EZTrader always makes it simple. . . . . . . . . . . . . . . . . . . . . . . . . . . 05 2.2 Ease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 2.3 Making Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 2.4 The EZTrader Platform . . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . 07 3 Get to know our assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09 3.1 The basics of Binary Options . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 10 3.2 Deposits & Minimum Trading amount . . . . . . . . . . . . . . . . . . . . . . 12 3.3 The Trading process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.4 Analyzing Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 3.5 Trading Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
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Ez trader ebook

Aug 31, 2014

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Economy & Finance

EZTrader

EZTrader was established in 2008, and offers traders a binary options trading platform
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Page 1: Ez trader ebook

Table of Contents

1 Why EZTrader? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03

1.1 How about an EZ answer to a simple question. . . . . . . . . . . . . . . . 03

1.2 Our Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

1.3 The Advantages of Binary Options . . . . . . . . . . . . . . . . . . . . . . . . . . 04

2 Simplicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

2.1 EZTrader always makes it simple. . . . . . . . . . . . . . . . . . . . . . . . . . . 05

2.2 Ease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

2.3 Making Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

2.4 The EZTrader Platform . . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . 07

3 Get to know our assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

3.1 The basics of Binary Options . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 10

3.2 Deposits & Minimum Trading amount . . . . . . . . . . . . . . . . . . . . . . 12

3.3 The Trading process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

3.4 Analyzing Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3.5 Trading Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

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EZTrader

EZ Trading Patform

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Why EZTrader ?

How about an EZ

answer to a simple

question

EZTrader offers the highest payouts available in on-line trading,

arriving up to 95% & available in various expiration times, ranging from

hourly, daily or weekly options.

EZTrader’s highly advanced trading platform has made trading easiest

as possible in every step of the way, from registering, depositing, trading

or withdrawing your funds.

The platform offers about 100 global assets, including some of the

world’s leading stocks, indices, currency pairs & commodities. Being

able to trade on assets from across the globe allows you to trade

virtually 24 hours a day, while enjoying the financial opportunities of different

asset categories & regions.

Aspiring to expand its traders’ knowledge & skills, EZTrader also

provides its users with a thorough trading guide, beginner’s tutorial and

other advanced trading tools, including information on stock exchanges

and trading hours, alongside daily & weekly financial reviews of global

markets.

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Our Customer Service:

EZTrader offers multi-lingual round-the-clock professional customer

service, available through phone, chat or call-back.

Our skilled account managers & costumer support representatives will

happily assist you with any question you may have.

The Advantages of Binary Options:

Binary options are one of the most interesting money making vehicles

found in options trading today. With their simplicity, potential for large

profits, and quick and easy trades, they have many distinct advantages over

other types of options trading, including traditional ones.

Although conventional trading still has strength, binary options are simply

easier and have less risk. And most of all they are more enjoyable form

of options trading & enables you to achieve significant financial revenues

quickly.

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Simplicity

EZTrader always makes it simple

EZTrader offers the highest payouts available in online trading,

arriving up to 95% & available in various expiration times, ranging from

hourly, daily or weekly options.

EZTrader’s highly advanced trading platform has made trading easiest

as possible in every step of the way, from registering, depositing, trading

or withdrawing your funds.

The platform offers about 100 global assets, including some of the

world’s leading stocks, indices, currency pairs & commodities. Being

able to trade on assets from across the globe allows you to trade

virtually 24 hours a day, while enjoying the financial opportunities of different

asset categories & geographical regions.

Aspiring to expand its traders’ knowledge & skills, EZTrader also

provides its users with a thorough trading guide, beginner’s tutorial and

other advanced trading tools, including information on stock exchanges

and trading hours, alongside daily & weekly financial reviews of global

markets.

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Ease

Binary options are easy to access, highly-dynamic form of options

trading. You can trade a binary option at any time of day or night,

seven days a week. You can complete the transaction from any

computer in the world; so long as you have an internet connection,

this is one of the great features of the EZ- Trader Simple Platform.

You can also trade through your smartphone or tablet, using EZTrader’s

highly innovative mobile trading applications, allowing you to keep on

trading anytime, anywhere.

Making Money

Binary options have one of the highest rates of returns available on

the open market.

As most forms of traditional stock options must mature over time in order

to redeem possible earnings; binary options have an average rate of re-

turn ranging from 75% to 81%.

EZTrader provides the highest payouts available in the binary

options trading world, in some cases up to 95%!

Following the EZTrader philosophy and method, you can be making

money with little education and advanced knowledge. Within a short time

from registering on the EZTrader platform you could be making “in the

money” trades and counting your profits. It is fast and easy to start

making that extra money you need.

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!

The EZTrader Platform

Image Credit or explanation: Credit or Picture Explenation. Credit or Picture Explenation.

Credit or Picture Explenation. Credit or Picture Explenation. Credit or Picture Explenation.

Trading on EZTrader’s platform is simple & easy:

First, Choose a Category from the drop-down menu.

Then, Select the Asset from our extensive asset list

& choose an expiry time.

Select Call if you think the asset’s value

wil increase by the options expiration time,

or Put, if you believe it will rather go down.

Enter a Trading Amount and click Execute.

All you have to do now is waiting for your option to expire.

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When Trading Binary Options you have 3 possible outcomes:

In the money: means the option has expired in the

direction you have predicted; either up if you chose

Call or down if you chose Put.

At the money: means your asset’s market value

stayed exactly the same as its original strike price

(the value in price of the asset when executing the

option).

Out of the money: Means the asset’s value has

moved in the opposite direction that you have predicted.

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Get to know our assets:

“Assets in the global market are divided into 4 main groups; these

are currencies (also known as Foreign exchange or Forex),

commodities, stocks and indices. Each of these groups belongs to

an association of exchanges and markets.”

Stocks: One of the most popular traded assets across the globe, Stocks

represents an organization’s trading ability on the stock exchange. The

EZTrader platform offers a selection of stocks from a wide range of

industry categories and global markets. This includes stocks in the

technology sector (Apple, Google, Facebook), Banking (HSBC, Barclays)

Pharmaceutical, retail and many more.

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Indexes or Indices, are baskets of pre-selected stocks that are

combined together to represent a section of the market. Each index

moves up and down based on the value of its selected stocks. The

most famous of these are the S&P 500 or the Dow Jones in the US, the

UK FTSE100 or the German DAX.

Currency pairs or Forex, are where all the global currencies that

are exchanged or traded are valued against each other. On the

EZTrader platform you can trade options on currency pairs such as the

USD/JPY, USD/EUR and many more of the world’s leading currency

pairs.*

Commodities are items that are consumed for the most part,

such as food, energy and metals. EZTrader provides you with the

ability to trade options on Gold, silver, copper & oil*.

The Basics of Binary Options

Choosing a Call / Put option

When trading options, there are two important terms you should know;

we can refer to these as predictions. They are known as “Call” and

“Put”. These are essentially your prediction on which way the asset is

going to move;

if you think an asset will rise in value upon expiration time, you should place a “Call” option. If you think that the asset is going to drop in value, you should place a “Put” option on it.

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Let’s go a little deeper into this…

CALL: A call option is a trading choice that provides a user with a specified amount

when a security is above the strike price upon expiration. Traders use this strategy when they believe an asset will rise in price withina pre-determined period of time.

In this scenario, the trader is “in the money” when the price of the option is

greater than the strike price. For a binary call option, if the

expiration price is below the strike price then there will be no payment to

the trader. However, EZTrader does provide its traders with a certain

refund in case of this outcome, allowing you to keep on trading & achieve

better results on your next trade. Traders usually take a binary call option

position in a number of instances; when markets are bullish, securities

such as currencies, indices and stocks tend to be on the rise. Positive

economic conditions can be the cause of these rises or internal gains

from an organization. It is the reason why it is important for traders to be aware

of how the market is moving.

PUT: Contrary to a Call option, in a binary PUT option the trader predicts

that the specific security will fall in price prior to expiration time. A put option

can also be defined as a trading choice which provides a user with

a specific payout when a security is below the strike price upon expiration.

This strategy is used by traders when they believe an asset will go down

in price within the pre-determined time period. In traditional trading terms, this

resembles a short strategy as it enables traders to identify a bearish

market. For a binary put option, if the strike price is above the price at

expiration, there will be no payout to the trader, but EZTrader will still

usually provide with a certain refund. Traders usually take a binary put

option position in a number of instances; When markets are bearish,

securities such as currencies, indices and stocks tend to be volatile and

falling prices tend to occur. Traders need to be aware of these

movements in the markets, especially in the binary options area.

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Deposits & Minimum trading amount

There is a difference between the minimum amount required to open an

account and the minimum amount required per trade: When you open an

EZTrader account, you are simply depositing funds into a secure protected

account, just like you do at a bank. The funds are yours and kept under your

name. These funds are yours to withdraw or trade with;

In order to start trading you need to have an EZTrader account, the second thing you'll need is an available funds on this account, for now traders cannot execute trades without available funds in their account. After your account has been funded the funds are deducted from your account each time you make a trade. When you make successful

trades, the profits are added into your account. You can make trades for as little as $25 or up to the balance you have in your account, with a maximum per trade limit at $3000. Your funds are always protected with highly advanced security and encryptions; no one except you get an access to your funds.

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The Trading process:

If we start thinking of

trading as puzzle pieces,

we can build a solid

understanding so that we

can put these pieces

together, which is actually

called a strategy, to make

a profitable trade.

Underlying asset

Choosing the expiration time

Prediction

Determine your investment amount and execute

1. The Underlying Asset This is the first component to any trade; choosing an asset. There are 4 groups

of assets; stocks, indices, currencies and commodities. The best way to

pick an asset is to first pick several assets that interest you and start learning

about their movements in the financial markets. You can either focus on

one asset or one sector or a compilation of many sectors - the choice is

yours. Keep it simple; find assets that have relationships with each other. You

can always add more later on, or change entirely. You cannot start

making a trade until you have selected an asset. 14

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2. Choosing the Expiration Selecting your expiration time is part of your fundamental analysis, as you

are deciding when the markets will move.

EZTrader has made this simple for you also, you only have three choices

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for an expiration time on the EZTrader platform, either choose end of

the hour, end of the day or for some assets the end of the business

week.

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3. The Prediction Depending on market data and other information used in guiding

your prediction, either a call or a put option is determined. If you think the

asset will rise above the strike price you should place a call option. If you

think the asset will fall below the strike price, place a put option. The

question is how this prediction is made, so that it is not based on just

guessing. This is where education, knowledge, training, market

insight and research are important.

For this matter we will provide you with some essential binary options

trading analysis techniques as well as trading strategies in the

following chapter.

4. Determine your Trading amount & execute Always use good money management when determining your trading

amount.

Once you have entered your trading amount make sure you have

clicked the "Execute" button as your trade is not valid until it has

been executed.

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Some Analyzing Techniques:

1. Using Economic calendar: A good way to enhance the probability of your trading success is

applying some fundamental analysis to your binary options trading

strategy and in particular using the economic calendar:

The economic calendar provides you with a timetable of decisions,

publications and announcements that affect economies all around the

globe. Often the markets react to these announcements and

publications of data and this is where the keen-eyed Binary trader can

cash in.

By simply using the calendar, tracking the events that are due, the

forecast and previous results one can determine the effect of the actual

results on the market, whether it be a negative or positive effect. You can

be ready to make the trade seconds from the release.

Following the announcements are generally short periods of volatility as

the markets evaluate the data. If the market response positively to a certain

event or announcement made by a company than the stock price will probably

increase, whilst when the market respond negatively the prices

decrease.

Knowing which events or announcements are important to each

company, index or market sector and the effect it is on the asset's value

may need some research, but the effort will surely pay off…

A good example of using an economic calendar when trading on the US

dollar, also called the greenback, is to watch employment figures, released on

the first Friday of each month.

If these are better than predicted, markets will usually go up and the value of the U.S

Dollar will increase against most other currencies, similarly, if you

watch manufacturing reports or durable goods data.

As America is a big oil importing nation, an increase in oil production will

drive up the cost of oil. Also, the publication of key indicators like interest

rate decisions will have an immediate effect upon a currency’s price as

do key statements by leading figures in the global financial world, such as

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Statements made by the Federal Reserve chairman regarding the Federal

Reserve’s monetary policy, which has an enormous effect on the global

markets.

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2. Fundamental Analysis: Mainly used when trading on stocks, a fundamental analysis means

performing a thorough review of your asset. This includes a detailed

review of the firm’s financial statements, market share, overall management

structure, competitive advantages and its competitors.

When applied to future contracts and currency pairs, fundamental analysis

focuses on other factors such as the stability of the economy, interest

rates and the unemployment rate. If you wish to use this type of analysis you’ll

need to perform it on both historical and current data of your chosen

asset, which will help you get a bigger picture of the asset in order to

determine the potential change in its value by the expiration time.

Fundamental analysis can also be helpful if you want to learn how an

asset usually reacts to market activities such as quarterly financial reports or

other macro data published. Looking at how the asset has reacted to such

events in the past may help you in predicting its future direction following

such events.

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3. Technical Analysis: Technical analysis is all about recognizing trends through market

statistics. These statistics are usually past prices and volume.

With this type of analysis, a trader will use market trends to predict the

future movement of his chosen asset. The goal here is not to assess the

current value of the asset but to establish patterns of movement in order

to better predict its future activity.

The premise behind Technical Analysis is that once a price trend

is established, future price movements will be easier to determine.

Technical analysis is largely used when trading on stocks or indices,

which are operating in a volatile market. Learning how prices have moved

historically following a change in the market helps traders to speculate if a

similar pattern is likely to occur when changes like these take place,

related either to the stock or the market in general.

Some Trading Strategies:

1. Knock-on effect: One of the main strategies commonly used by traders in the binary trading

community is the knock-on effect strategy, which requires deep

understanding of financial market’s inter-relations as well as binary options

signals. Also known as ‘market pull strategy’, the concept behind this

strategy is that the movement of one option will likely have an effect on

another option. Monitoring interrelations in the financial market helps the

trader in deciding whether to place a CALL or PUT option on a certain

asset, based on changes another asset has experienced.

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2. Hedging Strategy (also known as pairing): This binary options strategy enables you to take advantage of a window

of opportunities in order to maximize your profits with a lower risk level.

For example, if you’ve placed a call option on a certain stock and your

trade was successful. If you want to place another trade on the same

stock but are concerned that it is likely to start declining, you can then

implement a hedging strategy by pairing a put option on the stock

alongside a call option on that same asset. This will allow you to hedge

against both eventualities and safeguard your initial return.

3. Straddle Strategy With a straddle strategy, a trader will be looking to place a Put option as

high as possible and then when the market drops, to place a Call option

on that asset.

For instance, a trader could place a binary put option on a certain market

index which he believes is about to fall in the next couple of hours, and

then as soon as it starts to show signs of declining further, he would place

a call option on it. This way the trader can take advantage of the value

fluctuations of that certain asset, and will have at least one trade expiring

"in the money".

4. Risk Reversal Strategy This strategy requires an understanding of an asset’s historical

performance and sensitivity.

If an asset is heading in a direction which is not typical for it, a trader may

place a trade on it, assuming it will likely change course within the near

future. For instance, if a certain asset is traded at an unusually high price

in your opinion, you can implement a risk reversal strategy and execute a

Put option on the asset, as you believe it will soon change direction. For instance, let’s say that after conducting research you have identified

that the value of the NASDAQ is 3,200.00 over the past year. If the value

of the NASDAQ is currently trading at 3,300.00 you can take your

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Knowledge gained from the mean reversion strategy and decide to place

a put option on the value of the index.

5. Pattern Return strategy: Used by both traditional and binary options traders to determine the

movement of an asset or of the overall market, the goal with a

pattern return strategy is to use statistical techniques to help you

understand the price movements of the asset.

The calculation here follows the momentum of the asset’s price, as the

rule of the theory is that momentum changes direction before the actual

value does.

Applying this strategy means you should first choose an asset, preferably

a stock. Then Select an appropriate timeframe that accurately reflects the

price range of the asset. After looking at the stock and its fluctuations in

values, for let’s say a three-month period, you should Log the highs &

lows of the asset over that specified time period. By looking at the

performance of the stock over this period, you could see for example that

the stock has reached a three-month low of $98.00 in January and a high

of $196.45 in February.

Following these steps, you can use this information to assess how the

closing price compares to the price range. The outcome of this analysis will

help you to understand if the asset is likely to rise or fall in value compared

to its historical patterns.

6. Mean Reversion Strategy The mean reversion strategy suggests that the prices of assets usually

retract back towards a mean – or average. In traditional trading, the

average can be the asset’s historical average of the price or the

historical return.

To use this strategy you need to identify an asset’s average and then

determine if the asset’s price is likely to settle back at this value

within the given period of time. The idea behind it is heavily linked to

the view that market performance move in cycles. So, after you

perform research on your chosen asset, you need to understand

what the “norm” is for that particular asset in order to determine what

the mean value would be for that asset.

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The mean reversion strategy heavily applies to stocks and indices:

Since the performance of both is highly sensitive to movements in the

wider economy, their value often reverts back to the mean over time.

For instance, let’s say that after conducting research you have identified

that the mean value of the NASDAQ 100 is 3,200.00 over the past year. If

the value of the NASDAQ is currently trading at 3,300.00 you can take your

knowledge gained from the mean reversion strategy and decide to place a

put option on the value of the NASDAQ.

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