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nomandicnebulas · 15 days

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Dive into the Exciting World of Financial Accumulator Options Trading with Deriv.

Dive into Financial Accumulator Options Trading with Deriv

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Introduction

Accelerate Your Earnings: With accumulator options, your payout skyrockets as long as the spot price remains within a specific range from the previous spot. Remember to close your trade before it reaches the upper or lower barrier to lock in your profits.

With accumulator options, your risk is clear-cut: it's limited to your initial stake or premium, say $5, with no margin requirements. The potential profit is boundless and can skyrocket as long as the upper or lower barrier isn't breached. At a 5% growth rate, your maximum profit is capped at 230 ticks, triggering automatic expiration and profit transfer to your account. Plus, there's a $10,000 ceiling on single-trade payouts; once reached, your trade closes, funnelling the earnings directly into your account. Accumulator options enable you to forecast whether the market spot price will remain within a specified range, offering an opportunity for potential gains.

Embark on Your Financial Journey: Exploring Accumulator Options Trading with Deriv

Accumulator options are presently available on derived indices, with future expansions into additional markets anticipated. Currently, traders can engage in trading the renowned Deriv volatility indices, ranging from the relatively stable 10 Index to the highly dynamic 100 Index. These derived indices operate 24/7/365, ensuring constant volatility and enabling traders worldwide to participate at their convenience, free from the constraints of traditional market hours.

Understanding Your Growth Rate

Beyond choosing the underlying index to determine your preferred volatility level, you also have the option to set your growth rate at 1%, 2%, 3%, 4%, or 5%. This decision is finalised upon opening your contract and remains fixed throughout the duration of the trade.

Balancing Risk and Reward

Opting for a higher growth rate entails a narrower range, increasing the chance of your option expiring with no value. However, it also elevates the potential profits. It's the age-old trading conundrum: weighing risk against reward. Conversely, selecting a lower growth rate appeals to traders seeking reduced risk and aiming to minimise the likelihood of their accumulator option expiring worthless.

Exploring Growth Rate: Two Real-Life Examples

5% growth rate

Following the entry spot tick, your stake will steadily increase by 5% for each tick, as long as the spot price stays within ± 0.0049358253% of the previous spot price. It's important to note that with a 5% growth rate, the range is relatively narrow.

1% growth rate

Following the entry spot tick, your stake will steadily increase by 1% for each tick, as long as the spot price remains within ± 0.0064867741% of the previous spot price. With a 1% growth rate, the trading range is wider, resulting in a lower risk of knockout. Traders can also opt for growth rates between 1% and 5% for a balanced risk-reward ratio, tailored to their individual risk tolerance levels.

Manual vs. Automatic Profit Taking

Manual Profit Taking

You have the flexibility to close an accumulator option at any time after the initial tick by simply clicking the SELL button. This instantly credits your stake and profits to your account, mitigating any additional risk exposure. However, if the upper or lower barrier is breached before you execute the trade closure, the option will expire worthless.

Clicking the Sell button will close the trade

If you choose to press SELL in this scenario, you will receive $134.01, comprising $100 as your original stake returned and an additional $34.01 as profit. It's important to be aware of the slippage risk, which entails the potential for slight price fluctuations in either direction by the time your trade is closed.

Automatic profit taking

In addition to manually closing a position to secure profits, you have the option to utilise the take profit feature. This feature enables you to set a predetermined level at which a trade will automatically close. For instance, you could set your take profit level at $50. Once the option reaches this threshold, the trade will close automatically, and your account will be credited with the profits and stake.

On the right, you'll find an illustration featuring a 5% growth rate, a $100 stake, and a $50 take profit. It's important to note that the take profit level cannot be adjusted once the trade is initiated. However, you still retain the ability to manually close the trade before it reaches the specified level. For example, if the trade achieves a $25 profit and you decide to secure gains, you can do so by clicking the sell button.

Take profit is set to $50.

Navigating Option Expiration

If you fail to close an accumulator option prior to the upper or lower barrier level being breached, it will automatically close. This results in the loss of any unrealized accumulated gains along with your stake. Until you initiate a new trade, you will not have any exposure. The following example illustrates a losing accumulator trade in which the market spot price dropped below the lower barrier price.

Lower barrier is breached, so the option closes at zero.

Short-Term Options: A Closer Look

Accumulator options are inherently short-term, ranging from 45 to 230 ticks in duration. This results in rapid realisation of potential losses or profits. For traders interested in longer-term opportunities, it's advisable to explore alternative options available on the deriv platform.

Utilising Statistics for Informed Decisions

To review the outcomes of the past 100 trades, simply click on 'Stats' and expand the view. The 'Stats' section showcases the history of consecutive tick counts, illustrating the duration the price remained within the specified range. Additionally, you can observe the number of ticks accumulated by the current option (open trade), denoted by the first number in the top left-hand column (as shown by '9' in this instance). Further details can be accessed by clicking on the three dots below. Furthermore, a summary of the last 10 trades is presented in the chart located at the bottom.

Statistical overview of historical accumulator option trades

Harnessing Technical Analysis and Charting

For traders keen on pattern analysis, transferring this data into a spreadsheet is an option. Additionally, the underlying index data (e.g., Volatility 100 Index) can be downloaded in CSV format. Given the short-term nature of these options, the default chart is a tick chart, also referred to as a line chart. Users can further augment this chart with widely-used technical analysis tools such as Moving Averages, Bollinger Bands, and MACD.

A chart enhanced with Bollinger Bands and MACD

Emphasising Full Fair Transparency

Similar to all Deriv products, every accumulator option undergoes thorough auditing and maintains complete transparency. Upon opening and closing each trade, regardless of its magnitude, a distinctive reference ID number is assigned. This meticulous process guarantees that every trade can be easily verified in the event of disputes or inquiries.

Exploring Effective Strategies for Accumulator Options

While it's essential for each trader to formulate their own trading strategy, here are several crucial factors to contemplate:

Mastering Money Management Techniques

Although you're cognizant of your maximum risk with an accumulator option, prudent money management remains paramount. For instance, if your overall risk threshold is $500, opting to risk 3% per trade equates to $15 per trade, affording you the opportunity for 33 trades. Naturally, you can adjust this percentage based on your individual risk tolerance.

Optimising Profit-Taking Strategies

Considering the rapid pace of accumulator options, adopting a lower-risk approach involves capturing profits after a few ticks, such as 3 ticks. Although this may result in modest gains, it mitigates the risk of the option expiring worthless. Conversely, some traders pursue a contrasting strategy by aiming for profits of 20 ticks or more. While this tactic may result in more trades expiring worthless, the successful trades yield substantially larger returns.

Maintaining Emotional Discipline

Maintaining emotional discipline is crucial, regardless of the market you're trading in. Numerous traders establish daily thresholds, ceasing trading once a predetermined profit target is reached or if losses exceed a set limit. It's advisable to refrain from trading on days where outcomes are unfavourable, opting instead to regroup. Furthermore, persist in utilising a demo account to explore new trading methodologies while temporarily stepping away from live trading.

Summary and Next Steps

Prior to committing actual funds, it's prudent to acquaint yourself with the product through a demo account, readily available at deriv.com. Here, you can explore accumulator options within authentic market environments and pricing dynamics, all without incurring financial risk. Once you've gained confidence in its functionality, transitioning to a funded account enables you to commence trading accumulator options with a nominal investment starting from just $5.

Here's to your trading success!

Dancun Juma.

Frequently Asked Questions

Q: On which markets are accumulator options available for trading?

A: Currently, accumulator options are accessible on volatility indices within derived indices. Expansion into additional markets is planned for the future.

Q: Can I open multiple accumulator options simultaneously?

A: While you're limited to one contract per instrument at a time, you can have multiple accumulator options open across different instruments. For example, you can have trades on Volatility 10, 75, and 100 Indices concurrently, but not multiple trades on the same instrument simultaneously.

Q: Is there a possibility of Deriv manipulating accumulator options?

A: Absolutely not. Deriv maintains a sterling reputation for fairness and ethical conduct across its 25-year tenure. With robust automation on its trading platforms, alterations to terms or prices for individual trades are prevented. Every trade undergoes auditing and receives a unique ID number, ensuring transparency and accountability.

Q: Are there any disparities between a Deriv demo and real account aside from funding sources?

A: No, both accounts operate identically on the same platform, featuring uniform pricing and terms. Consequently, performance on a demo account typically mirrors that of a real account, and vice versa.

Q: Can I automate accumulator options using Deriv Bot?

A: Presently, Deriv Bot does not support accumulator options automation. Trades must be executed manually, although the take profit feature remains available for use.

Q: Can I close an accumulator option at any time?

A: Yes, you have the flexibility to close your accumulator contract whenever you're content with the payout amount. However, if the spot price breaches the predefined range limits, your contract will automatically close, resulting in the loss of accumulated payout.

Q: Can I initiate an accumulator option trade at any time?

A: Indeed, accumulator options are tradable whenever the underlying market is operational, offering 24/7 availability for derived indices. However, temporary unavailability may occur if Deriv's internal stake limits are reached. Upon closure of existing positions, these limits reset, enabling normal contract opening.

Q: Is the accumulator option payout influenced by the direction of the underlying index?

A: No, payout escalation depends solely on the tick-by-tick movement of the underlying index within a predetermined range, unaffected by its overall trend. Only breaching the range limits impacts the outcome, resulting in potential losses.

Join derive today the best online trading platform and stand a chance of skyrocketing your earnings

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tradelikesavvy · 2 years

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Recently technology has broken down the barriers that used to stand between the end users of foreign exchange services and the interbank market. The online trading revolution opened its doors to retail clientele by connecting market makers and market participants in an efficient, low- cost manner. In essence, the online trading platform serves as a gateway to the liquid FX market. Average traders can now trade alongside the biggest banks in the world, with similar pricing and execution. What used to be a game dominated and controlled by the big boys is slowly becoming a level playing field where individuals can profit and take advantage of the same opportunities as big banks. FX is no longer an old boys club, which means opportunity abounds for aspiring online Derivatives traders...As a retailer trader to participate in trading the financial markets you need to have a trading account with a reliable broker, in here will share with you a vibrant and progressive brokerage firm that offer wide selection of Derivatives to trade 24/7 ,With this broker you can trade all kind of Derivatives such as CFDs , options and futures as well as multipliers..when you sign up with this broker to trade CFDs on synthetic indices ( volatilitiy, step ,boom and crash indices, as well as range breakers) be sure to choose synthetic indices as an account type , to trade other CFDs like metal , commodities, energies , currencies ,stock indices and whatnot be sure to choose between financial and financial STP , to trade options and multipliers Derivatives you don't have to choose account type it's automatically connected to you CR account once you sign up and you will be able to trade on their website platform..Now those are just some icing on the cake to enjoy the full cake you can get connected now and stay in the loop.Here you go 👇👇👇👇

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jobsearchtips02 · 4 years

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Countless Robinhood Investors Want to Make Money From a Stock Market Crash

But will the customized investment lorries they’re picking do the job?

It’s never ever been a better time for youths to begin investing, and numerous have relied on the Robinhood mobile app to purchase their first stocks. The stocks Robinhood investors are buying have motivated a lot of dispute about their viability for individuals who are new to the marketplace, however it’s still good to see beginners welcoming the idea of getting their money to work through investing.

Yet countless Robinhood financiers are actually taking the opposite view on stocks. Instead of anticipating good times ahead, these bearish app-users have focused their attention on ETFs that are connected to stock exchange volatility. These volatility ETFs typically do increase in worth when stocks fall, but their long-term behavior leaves a lot to be desired.

Image source: Getty Images.

The concept behind volatility ETFs

Fund business created volatility ETFs to track what’s known as the S&P Volatility Index ( VOLATILITYINDICES: ^ VIX), or the VIX for brief. Numerous market individuals describe the VIX as the “Fear Index,” due to the fact that it tends to increase when the marketplace falls sharply but then decrease when the marketplace recovers.

Volatility ETFs feature various attributes, and three in particular have made their way into a large number of Robinhood financiers’ portfolios. The most popular is ProShares Ultra VIX Short-Term ( NYSEMKT: UVXY), with more than 16,000 investors counting it amongst their holdings. iPath Series B S&P 500 VIX ( NYSEMKT: VXX) weighs in with practically 5,400 financiers, and another 3,400 Robinhood users own shares of ProShares VIX Short-Term Futures ( NYSEMKT: VIXY)

2 of these ETFs have the exact same investment goals, but one varies. The routine ProShares ETF and the iPath offering attempts to accomplish a day-to-day return that exactly matches the everyday change in short-term futures agreements tracking the VIX. The ProShares Ultra ETF is created to offer a leveraged return equivalent to 1.5 times the daily change in VIX futures.

Volatility ETFs can work exceptionally well when markets plunge over short time periods. Consider this best-case scenario for the funds, which took place throughout the coronavirus bear market:

The regular ProShares volatility ETF jumped 405%from Feb. 19 to March 18.

The iPath fund did simply a little better, climbing up 409%.

The leveraged ProShares Ultra ETF exploded greater even further, with gains of 932%.

It’s those kind of fast paydays that numerous brand-new investors who gravitate to volatility ETFs wish to see.

Why volatility ETFs aren’t ideal long-lasting financial investments

The problem, naturally, is that you can’t make sure precisely when that huge market crash is going to take place. In the meantime, volatility ETFs do not make very appropriate long-term investments, due to the fact that they’re developed with daily returns in mind.

With a market scare in late 2018 in addition to the COVID-19- influenced bear market, you ‘d believe it would’ve been a pretty good duration for volatility ETFs. The routine ProShares and iPath ETFs are down about 3%over those two years.

In other words, even with those big gains during turbulent times, volatility ETFs lost a lot more ground when times benefited the stock exchange. That left long-term investors in those ETFs with general losses.

The better choice

Some Robinhood financiers are most likely attempting to time a huge market drop completely, but others may just believe that owning a volatility ETF can help you prevent the pain of stock exchange crashes. Yet that’s not the very best approach to have about your investing.

Unfortunately, volatility is the cost investors spend for the attractive long-term gains in stocks. Financiers must seek to manage and manage volatility instead of eliminating it, since removing risk usually also removes good returns.

The better option is to recognize stocks of premium business and purchase show the intent of holding them for the long term. That method, you’ll take part in the success of companies whose services you comprehend and believe in. When volatility hits and stock costs fall, having cash on hand to capitalize can end up being a few of your most rewarding investments.

Volatility ETFs are interesting investment vehicles for short-term traders. Those Robinhood financiers who have a longer-term frame of mind, however, ought to steer clear and focus more of their attention on fantastic companies.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“> Dan Caplinger has no position in any of the stocks discussed. The Motley Fool has no position in any of the stocks discussed. The Motley Fool has a disclosure policy

” >

from Job Search Tips https://jobsearchtips.net/countless-robinhood-investors-want-to-make-money-from-a-stock-market-crash/

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tradelikesavvy · 3 years

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Just an updates 20,000 plus pips have been achieved on V75 longs ,Of which setup and call was made to our public telegram channel and shared to some other group here in FB.

If you're still not in volatilities you are real missing out on some quite good moves that produce alot of pips in a short period of time and I guess you can't afford to keep missing. Since these instruments are exclusively offered by one vibrant broker in the whole world hence I will take step by step with the the procedures to get you connected and stay in the loop;

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Step2, you need to add real Deriv account which can be either in fiat or cryptocurrencies,from your Deriv àccount you will click account switcher at the top right corner of your screen then under the real tab click add.

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Step 4, Complete your personal and address details

Step 5,Click add account

step6, your account will be created ,if you chose fiat you will have Cr for fiat, if you chose cryptocurrencies you will have Cr for cryptocurrencies..Mind you can create both fiat and cryptocurrencies account, you will create cryptocurrencies if you need to transact with cryptocurrencies ( I mean depositing and withdrawing with crypto, same applies to fiat ).You may only create one fiat currency account in either USD, EUR, GBP, or AUD.

You can create one account for each cryptocurrency. This means you can have a BTC, ETH, LTC, and

USDT account at the same time.

After that it means you already have real Deriv account which you can use to trade options which are innovated to include multipliers options, trading platforms include Dtrader, Deriv go, Deriv X and whatnot, to trade CFDs on Synthetic indices and other CFDs on metals, commodities, currencies, energies, indices, stocks,crypto and whatnot you will need to create real DMT5 accounts of which you will choose between three account types which are Synthetic indices, Financial and Financial STP..For today will talk about how to create real DMT5 Synthetic indices àccount and the same Procedures can be applied to other account type;

Step1, from your Deriv account click the account switcher at the top right corner then choose the DMT5 account type that you want and click add

Step2, create your password you will use to login to the DMT5 platform then click add account

Step3, congratulations you have created your DMT5 accounts, click transfer now, make transfer from your real Deriv account and start trading..In essençe your real Deriv account can act both as your wallet and for trading options, Of which sometime you can take advantages by holding your cryptocurrencies say Bitcoin if you believe it will go higher or converting them to fiat if you believe it will go low, moreover on DMT5 is for trading CFDs of which you can either trade with fiat or crypto, mind you trading with crypto can potentially generate more crypto when you make profit the same applies when you make profit with fiat...

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