Latest binary options news
When we place a derivatives trade, we are of course counting on the price rising substantially within a certain period of time. In the world of binary options, this is the key principle behind maintaining a secure and profitable position. However, there is much more to these mechanics than simply “predicting” that the price of a certain position will remain bullish into the near […]
Whether you’re a newcomer to trading in general or you’re a seasoned trader looking to explore new alternatives, binary options trading is suitable for everyone. It’s a new type of trading quite unlike anything before it which is exciting both beginners and pros alike. It’s a lot more fast-paced than traditional trading and it’s a lot simpler to understand. The simplicity of binary trading […]
Whether you’re completely new to trading on the stock market or you’re just new to trading binary options, binary options trading presents exciting new investment opportunities in the stock market. They offer a different way to invest and manage risk that appeals to some traders. You can’t directly access the markets, so you have to go through a broker to trade binary options. There […]
Without question, the binary options market continues to go from strength to strength. There is now a huge number of trading sites out there, so it can be a bit bewildering choosing which one to use. One of the prime considerations that you should have when making your decision is the type of bonuses that you can earn at any particular site. For the […]
Binary Options, like any other form of financial venture, is not something you just jump into full speed ahead. A certain amount of preparatory research is required and, as with any other venture into a foreign country, you need to learn at least a few basic terms. Failure to understand the language isn’t going to get you your money back if you’ve gotten it […]
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, digital options 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 2013, 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 find a range of trading articles in our education section, meanwhile experienced traders can learn about trading strategies and Greeks under the “Advanced” section.
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