Sunday, October 14, 2012

Know your pollen to trade binary options

A legend of botany and binary options science
You have a gut feeling that the price of silver is going to go up in the next 24 hours and you decide that you're going to trade binary options. You're going to invest in the idea that silver will hit a certain number within 24 hours.

But how do you know if you'll be right, other than simply going with your gut?

Here is where black and scholes come into the picture. Black and scholes were brilliant men who created a formula for economists in the 1970s. Called the black-scholes formula with the geometric brownian motion, the very same that was discovered by the botanist, Robert Brown, it charts and predicts what a commodity will do in a set amount of time. It takes many factors into consideration when creating the formula and methodically helps you to make the right decisions for your silver binary options trade.

1 comment:

  1. I'd say trading binary options based on gut instincts is a recipe for disaster. Understanding Black-Scholes will definitely improve your odds of success. Understanding candlestick charts will great improve your odds of success.

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