Latest binary options news
Strategies in trading gold using binary options Gold is quite possibly the easiest commodity to liquidate, making it a great tool for trading in binary options. Gold trades 24/7, giving investors a lot of material for technical analysis as well as data for tracing long-term fundamentals. The Fibonacci method is a great tool to learn for predicting lines, levels, and get a good scale […]
Jason Sen’s Day Trading Ideas 14 July Here are the Day Trading Ideas from Jason Sen for the week beginning 14th July 2014 Australian Dollar v US Dollar AUDUSD hovering just above 4 month bull trend support at 9375 today. However a break below 9370 is much more negative & quickly targets support at 9355 today. Brent Crude Brent Crude unexpectedly crashed through May […]
777Binary Review 777Binary is a company which is completely web based, it offers a stunning user interface and is targeted at both seasoned traders and newcomers to the field. Clients can trade from any global location without the need to install new software or download files, so it’s possible to be making your first deal within a couple of minutes. What do 777Binary’s tradable […]
Binary Options Traders Ten Common Mistakes The arena of binary trading can be a rewarding and yet confusing place; particularly for beginners. So, let us look at ten common mistakes that are made and the ways in which they can be avoided. Trading with Emotion This is mentioned first because it is a common pitfall. When greed or anger supersede logic, great losses can […]
The OptionsXO Review OptionsXO is a relative newcomer to the binary options market but has used this late entry point to review the current trading platforms and pick the better features from the market leaders. The platform has been designed by Techfinancials who have previously provided solutions for 24Options and OptionFair. Tradable Assets More than one hundred tradable assets are available through OptionsXO which […]
What are Binary Options?
Binary options, also known as digital options or fixed-return options, are fixed-odds financial instruments that allow individuals to bet on the movement of an underlying market asset. The most popular assets traded in the industry include indices, stocks, commodities (i.e. gold and oil) and Forex.
The fixed-returns options industry has become increasingly popular over the last few years because they provide investors a low-cost, low-risk way of betting on the financial markets. Investors in the industry receive fixed-odds returns, which minimises the amount a trader can lose in a single trade. This contrasts with high-risk trading such as Forex and spread betting, which is traded on leverage. Overall, binary trading provides a safer way for beginners to bet on the financial markets.
The payout of these trades is determined by the platform before the trade is executed as a percentage, usually ranging from 70-85%. This determines the size of the return for a winning option.
Types of Binary Bets:
In 2014, binary options brokers offer a greater range of options on their platform with different characteristics and payouts to suit an individual's trading style. This also includes 60-second options, option builder, and weekend options.
High-Low (Call/Put): The most popular binary trade is the high-low option, where an individual can bet on whether an underlying asset will finish above (Call) or below (Put) a certain price in a given period of time. .
One Touch: The one-touch option pays out when the underlying asset hits a certain price at anytime during the trading period.
Tunnel or Range Option: First of all the trader sets up a high boundary and a low boundary for his trade. If the underlying assets stays within these ranges for the entire trading period (without touching the boundaries) then he wins a pay-out. The tunnel bet is essentially a way for traders to bet on the volatility of the market.
Target: In contrast to a tunnel bet, a target bet pays out in the money when the price hits a specific level determined by the individual. He/she can either set a higher target price if he thinks the market is bullish or a lower target price if the market is bearish.
Useful External Resources
- Chicago Board Options Exchange (CBOE)
- Cyprus Securities and Exchange Commission (CySEC) - Responsible for the regulation of most Over the Counter brokers.
BinaryOptions.com is a leading binary options trading, education and news portal, launched in 2011. Our site is run by a dedicated team of professional options traders and has been providing you with advanced trading strategies, articles and news for several years now.
Beginners can choose a broker and find a range of trading articles in our trading education section, while developing traders can check out our trading strategies section. If you are a more advanced or experienced trader, then we have an advanced binary options strategy site under development. We are in the process of removing that content from this site.