Binary Options Trading – is it really so simple to trade??
Binary options are fixed return options because they come with only 2 possible outcomes.
It is a
contract which gives the buyer a right to buy an underlying asset at a predecided fixed price
within...
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Binary Options Trading – is it really so simple to trade??
Binary options are fixed return options because they come with only 2 possible outcomes.
It is a
contract which gives the buyer a right to buy an underlying asset at a predecided fixed price
within a specified time limit.
The security that is being traded is known as the underlying asset
and can include commodities (e.
g.
gold, silver, nickel, lead, and oil), currencies (USD/JPY),
stocks (e.
g.
Apple, Microsoft, IBM, cocacola) or stock indices.
The price at which owner buys or
sells is known as the strike price.
When trading binary options the person who is buying the underlying asset chooses call option
if he is expecting a rise in the value of the security at the end of the expiry of time which may be
the end of the day, week or the month.
The buyer will place a call option thinking that the option
price would be more than the current price at the time of binary option trade.
In vice versa the
owner will place a put o
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