While doing all these, get some time to check about the Black-Scholes model.
This is used to calculate the binary option trades and the formula used for this is:
Where T – time to expiration, r – risk-free return rate, it denotes the cumulative-distribution function of normal distribution, S – initial price, K – strike price and q- dividend rate.
The binary option robots will easily handle this type of calculation to help traders to get maximum returns in minimum investment.
This is an easy way to get plugged into the working on binary option trades.
If a robot is doing this, there is no need for the trader to know math.
Everything is calculated and figures are made available within no time.
The formula is just for knowledge purpose and there is no need of application of the same if you are using robot for binary option trading.
The formulas for call investment and put investment are also stated below for information sake:
Call Investment Formula:
P = e^ {-rT} * Phi(d2)
Put Investment Formula:
P = e^{-rT} * Phi (-d2)
It does matter when, how and from where you invested and how you are trying to make money in binary option trading.
All strategies are saved for future analysis and for re-usage.