Profitsee – Future Economic Surivival

Divinations in Forex, Commodities and Economic Patterns

EXAMPLE OF EUR/USD +3280/3300 -10am est

binary-options-example-stop-loss-spread2.PNG
The above is an example of the time line of the stop-loss cover conducted yesterday (3/20)

6:09: Long Cash at 3280
8:44: entered an order to sell 1 HS 3300 at $55 when the underlying was at 1.3295.
8:48: my cash position was hit with the stop-loss of $50.
9:02: the 1 HS Short position was hit at 55 when the underlying was at 3305
10:00: HS contract closed ITM for a $55 gain.

So, rather than a -50 loss, the intended effect on the HS covered the loss with an incidental $5 gain. One thing to notice is that the placement of the stop is as important as the important as the price of the HS. Once could of used a more generous stop-loss thereby allowing the cash position to survive. Or, one could of employed buying the 3330 OTM when the cash position was put on . It depend when you want to risk the premium, early the trade or later on, as in this example

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Filed under: stop-loss

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