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The end of bitcoin risks? Wall Street hedging tech blocked from U.S. users

Bitcoin News   --   The end of bitcoin risks? Wall Street hedging tech blocked from U.S. users


The end of bitcoin risks? Wall Street hedging tech blocked from U.S. users

The Future is Binary  -  The UpTake: Even as new technologies are being developed to solve some of bitcoin’s core problems, regulatory fears are keeping U.S. users from reaping the benefits. C oinapult says it has solved one of the most common complaints among detractors of bitcoin: that the currency fluctuates too rapidly to work as a reliable store of value. Beginning today, the Panama City-based … (continue reading)

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Bitcoin stabilizes after recent drop

Bitcoin News   --   Bitcoin stabilizes after recent drop


The Future is Binary   – – – Bitcoin stabilized on Tuesday, as investors returned to the market to seek cheap valuations after prices of the virtual currency fell to a more than one-month low on Monday. Bitcoin (BTC/USD) declined 1.51%, or $8.93, on Slovenia-based BitStamp to trade at $584.00 during U.S. morning hours. Prices held in a range between $570.50 and $596.00. The … (continue reading)


Romania buys into bitcoin big time

Bitcoin News   --   Romania buys into bitcoin big time

The Future Is Bitcoin  -  It seems the wild-east for the cyber-currency bitcoin is not China but here in Europe. It is increasingly finding favour in one of the European Union’s poorest countries – Romania. There is even a bitcoin ATM, or cash machine, in the capital, Bucharest, with more planned. In addition, Romania’s first bitcoin exchange, in the western town of Oradea claims to have more than 2,000 … (continue reading)

Banc de Binary

Why Is Earnings Per Share Important?

BInary Options  -   Why Is Earnings Per Share Important?

Why Is Earnings Per Share Important?

The Future is Binary  -  Coming to you from The Trading Room, Banc De Binary’s research and analysis centre, welcome to In The Money. Earnings per share is a key metric for judging how healthy a company is. Analyst Lauren Carmouche gives her insights into EPS and P/E ratio and how binary traders can capitalise on price movements.

Earnings per share are the main focus of the earnings announcements as they are the earnings of the company on a per share basis. Shareholders often compare this number to the EPS for previous years and to what the market expected to earn in the current period in order to assess how the company is doing in general.

What other types of metrics are important for binary traders to check before making a trade on a share price movement?

So we have looked at EPS, which is the net income­dividends on preferred stock/ average outstanding shares. We also use this metric to calculate another important metric when valuing a company, the price/earnings ratio. It is the most commonly used valuation metric; P/E is a quick way to look at the valuation of a stock. One way to view P/E ratio is: how many years it would take for you to recover your investment principle from the earnings a company generates, assuming no change in those earnings. If you buy a company for 5 million for example, that had an annual net income of 1 million, a P/E of 5 it would take 5 years to break even on that .

So how do we calculate P/E ratio?

We take the current share price and divide it by the earnings per share over a 12 month period. It does form a historical measure so cannot be relied on solely. P/E is considered one of the main ways to value a share, different are valued with different ranges of PE ratios which provide a benchmark of whether a ratio is high or low. Typically a company or industry with a high expected growth rate in future EPS will trade at a higher P/E ratio than one with a lower expected growth rate in future EPS.

So, to tie it all together for our viewers, what approach is the most effective for binary trades based on EPS and P/E ratios?

Ultimately, the more information you have about a company the better informed you are to make successful binary options trades.

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