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What is a Binary Option?

Binary options’ trading is becoming more popular than ever because it is a straightforward method of trading. One can gain profit from the process, even those not expert in trading secrets or methods. Conversely, an inexperienced trader can lose everything in less than an hour if they are just rolling the dice.

Binary options’ trading varies in type: a cash-or-nothing trade will pay a pre-determined fixed amount of cash if the option expires while “in the money” or there is the asset-or-nothing type of options trading that pays the underlying value.

A binary option dealer will readily offer a reward usually in the form of a bonus cash payment on contracts held or amount deposited. These are often given as a sweetener with an initial or first-time investment. This so-called sweetener can be used to create profits without using your own cash.
Binary options are a fairly new method of trading the global stock markets. However, the trading of the underlying contracts that are sold directly by the issuer to the buyer has been around some time.

How a binary trade works:

Let's say you were considering buying binary call options for the underlying shares of a company such as Microsoft or Apple. Now, if the expiry time is reached and the stock is trading above the price it was at when you bought the option, you'll get the pre-defined payoff for your contract. If the stock is trading below the share-price from what it was when you bought the call option, you will get nothing. This is the cash-or-nothing call where “in-the-money” traders are making more than 50% profit when their picks are correct. When their picks are wrong, they lose the entire investment. Risk does not get higher than this for inexperienced investors. Those with experience often know the trades to avoid so they don’t lose as often as an inexperienced trader.

The US-style binary options are out there in the market but are often referred to as "one touch options". The “binary” term has received more respect in the US since being approved by the SEC in 2008. Binary options are sometimes referred to as “European” options since this style of trade began its popularity in Europe. Binary in nature due to two possible outcomes for every acquisition of an option position – win or lose. In some statistical points of view, this gives the investor a 50/50 chance of winning, but more technical analysis tells an experienced trader that the odds change every minute.

We are offering global access to traders interested in the risky trades involved with binaries (www.trilateralcapital.com/binary.html). Through our affiliation with EzTrader, a binary option trader is currently receiving a 25% bonus for opening an account. This type of trading is not recommended for inexperienced traders that do not understand the stock or options markets, but is an easy way to start trading options with only $500. With basic trade experience, binary options have become an easy way to trade without a lot of time being spent on analysis and research.

Muni Bonds May Give Signal To An Inversion In 2012

"The municipal market ended the year issuing approximately $285 billion of bonds compared with $407.7 billion in 2010. Investment News reported that through December 23, 2011, municipal bonds posted a 10.72% yield, according to Bank of America Merrill Lynch indexes, the second-best performance since 10.73% in 2002. According to the article, municipals posted their best performance in 2009, when they posed a 14.5% return. The returns of 2011, in our opinion, will however be hard to duplicate this year due to a continued challenging market environment. Nonetheless we feel high quality municipal bonds will continue to provide value to investors."RBC Wealth Management

Arbitrage Non-Proliferation

Many people have never heard of the word "Arbitrage", but their job or business may depend upon it. The simple definition is, "The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time. (www.investopedia.com/terms/a/arbitrage.asp#ixzz1jXbMllQM)"

Most trade managers have the belief that "the market" is consistently correcting itself and an efficient market has no arbitrage. In essence, this belief is at the root of economic turmoil. Without arbitrage, innovation cannot occur. Arbitrage finds a way to naturally exist as its own form of correction on a market without innovation.

Suppression of natural arbitrage may have the opposite long-term effect. Synthetic arbitrage, on the other hand, can be a wholly different variable within an alternative strategy that is separate from traditional transactions and underwriting. Synthetics can only be a positive strategy through forward agreements where all parties win.

An issuer, beneficiary, and an investor can establish a synthetic arbitrage strategy, but not without full cooperation by all 3 parties. There must be 3 in the equation, otherwise there is no formula that has a positive impact on the economy and all 3 parties.

Generally, a capitalist equation requires a loss position for a "winner" to exist. Hence the opposing make-up of socialism where everyone wins (theoretically). A benevolent capitalist can accomplish a system far superior to that of socialism. Do you know any benevolent capitalists?

Do You Pick Your Own Investments?

When deciding where to invest your money, you need to always take into account your investment goals and objectives. Different types of investments carry varying degrees of risks and potential return.  With a little research and dedication, you can make your own decisions.  The following represents the typical investment types considered by the average investor in the United States.

CERTIFICATE OF DEPOSIT (CD)

A bank CD is a very safe investment. The CD is FDIC insured up to $250,000, so there truly is minimal risk. The only downside is that you cannot withdraw that money in the CD for a specific amount of time or else you'll receive a penalty. Bank CDs generally only pay up to 5% interest.

BONDS

A bond is essentially a loan you make to a company or a government. Bonds have varying degrees of risk, from essentially risk-free treasuries to junk bonds. The higher the risk of the bond, the higher the return will generally be.

STOCKS

Stocks are investments in companies. Depending on the company, the risk of the investment can be high or low. Obviously, buying stock in Johnson and Johnson is a lot less risky than a new internet startup company. In general, the stock market returns on average about 10% a year, though the actual return of any given stock will vary significantly.

MUTUAL FUNDS

A mutual fund typically invests in over 100 stocks, so it's an instant way to diversify your portfolio. However, the mutual fund generally charges a fee, which is about 1% of your assets per year. Because of this fee, most mutual funds do not outperform the market; an inexperienced person could potentially pick 100 stocks, but not charge a fee, and could outperform the average mutual fund.

REAL ESTATE

Real estate is a popular investment, often defined as an "Alternative Investment". The most obvious real estate investment you'll make is when you purchase your home. Your home can go up or down in value when you sell it; it depends on the housing market in your area. articlecircle.com

There are, of course, other types of investments to consider such as precious metals, derivatives, and FOREX for more advanced investors.  Non-US investment products are similar, but there are other types not typically available in the US, such as Binary Options or European Options.  Many independent investors are scepticle of paying an advisor or wealth manager a fee to make investment decisions for them, but it is always helpful to get an opinion from an expert.  Structured Products and Defeasance portfolios can be created by some institutional groups that cannot be found independently.

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Prepare Now, Do Not Procrastinate

Are you prepared for 2012?

Preparedness starts with setting goals. Your process of goal-setting will determine your future. Unrealistic goals are the typical reason for lack of productivity and satisfaction.

Set performance goals, not outcome goals:

You should take care to set goals over which you have as much control as possible. There is nothing more dispiriting than failing to achieve a personal goal for reasons beyond your control. In business, these could be bad business environments or unexpected effects of government policy. In sport, for example, these reasons could include poor judging, bad weather, injury, or just plain bad luck. If you base your goals on personal performance, then you can keep control over the achievement of your goals and draw satisfaction from them.

What are your top 3 goals for 2012?

What are your goals for next month?

Have you considered your most important weekly & daily goals?

Once you have solid goals set, you can start your plan.

What!? Why are US troops leaving Iraq?

US armed forces are moving to Kuwait, the Middle Eastern State south of Iraq where Western travelers and businesses prefer to enter from the Persian Gulf.  Based on recent trending news it seemed like the troops would be sent home by the holidays.  Hanukkah starts this coming Tuesday the 20th while Christmas Eve is four days after.  Ramadan does not start until July 20, 2012 - maybe the troops will be "home" by then. Some military personnell are on leave at home with their families in the US, while others continue to work as US assets move across the Iraq border into Kuwait where their presence is welcomed.

On November 9, 2011 the Army Times reported the planned exodus from Iraq, but is the country ready to lead its own military and financial system? http://www.armytimes.com/news/2011/11/army-1st-cav-bct-ordered-to-kuwait-110911w/

The Department of Defense employs approximately 3.2million Americans compared to Wal Mart's employment of approximately 2.1million multi-national employees (http://en.wikipedia.org/wiki/Walmart).  Movement of DOD employees to Kuwait will positively impact the economy of Kuwait equal to the benefit local US communities receive when troops return home and spend their DOD paychecks.

Kuwait became independent from the United Kingdom in 1961 and they started allowing female citizens to vote in 2005. https://www.cia.gov/library/publications/the-world-factbook/geos/ku.html Their malls, roads, condo buildings and office buildings are in line with what a Western traveler expects.  The Kuwait government has evolved since gaining independence 50 years ago, while their neghboring countries have devolved or have remained prisoners in their failing dictator-controlled governments.  Kuwaiti cities are safe and may be acceptable places for US families to live so that parents and spouses can come home to their families each day.

Returning troops to the US could have potential negative impacts on local economies.  Jobs are hard to find in the US and when strong young men and women are added to the labor pool, unemployment may increase by at least one person for every ex-military job seeker.  If troops are returned to the US and remain under the employment of the DOD or US government, costs are higher due to US cost of living.  Is there a way to employ military-trained individuals and keep them housed on US soil?  Or are they more valuable as exported assets that don't compete for US jobs during a down economy?

The US must perpetuate its presence in the Middle East and Asia, but there are also safe ways to accomplish military goals without human presence in hot zones.  Near hot zones on the planet there are often emerging markets where DOD personnell may have impact as business leaders while maintaining military presence.  US entrepreneurism is often led by former military personnell as well as existing part-time and full-time DOD employees.

EU Agrees To Agree

It seems odd to many journalists that the UK is not (does not need to be) involved in the EU agreement to complete a banking treaty by March. The Treaty will cause at least 26 member countries to commit to a new set of financial regulations, but they also receive Recovery Assistance from the IMF.  The UK has remained separate from the Euro currency commitment for 20 years and their "No" vote on the new Treaty is consistent with their long-standing currency position.

"At least 23 of the member states of the European Union will be part of this agreement and possibly it will be 26," European Commission President Jose Manuel Barroso said.

The EU leaders agreed that the eurozone, together with some other EU countries, would provide up to euro200 billion ($268 billion) in extra resources to the IMF, to be used to help European countries in dire straits.

The new agreement - and the new rift - came on a now-clouded anniversary, 20 years to the day after the treaty that led to the creation of the euro was drafted. That agreement, in turn, grew out of ambitious post-World War II efforts to unite a bloodied continent.

Governments participating in the new treaty agreed to have balanced budgets, calculated as an annual "structural" deficit of no greater than 0.5 percent of gross domestic product. An unspecified "automatic correction mechanism" will punish countries that break the rules.

To prevent excessive deficits, countries will have to submit their national budgets to the European Commission, which will have the authority to request that they be revised.

Complicating their negotiations, Cameron threatened to prevent EU bodies, such as the European Commission and the European Court of Justice, from taking on responsibilities of enforcing treaties made by fewer than all 27 members. But Merkel said there was legal leeway on the issue.

Germany and France insist that the best way to regain market trust is to beef up financial governance of the eurozone countries and their budgets.

But most economists agree that won't be enough: To regain the trust of investors in the short term, they say, the eurozone needs to have enough money on hand to guarantee that countries won't default on their debts."   http://www.ap.org/  ("All EU nations but UK open to joining new treaty")

Germany and France are gaining traction as they continue to be the conduit between the East & the West.  The UK remains strong in their position of seeming isolationism, but they benefit also by the strengthening of the Euro and a strengthenned relationship with the IMF.  The cost of US Treasury products have gone down  as a sign of the ECB's ability to establish a common banking system nearly as safe as the US from default, theoretically speaking.

Mohamed El-Erian of Pimco, a US bond expert, has a straight-forward perspective: http://www.bloomberg.com/video/82417768/