Latest binary options news
Ever wondered how billionaires spend their money? In this web-based infographic, we’ve looked at some of the interesting ways that billionaires, including Warren Buffett, Jeff Bezos and Dietrich Mateschitz are spending their hard-earned billions.
CySec Stardor Ban ‘Stardor plummets into the CySec black hole’ (http://bit.ly/1aNZ98k) ………….yeah, well it’s Friday afternoon and I’ve gone stir crazy……. Who is Stardor? More pertinently which is the binary options platform Stardor owns? What is the point of this CySec announcement?
CySec LBinary Warning The CySec warnings (http://bit.ly/1cKUIOO) are now coming thick and fast yet one wonders why LBinary has arrived on their radar? L for Lost The company is clearly a dodgy operation: on the Home page they state: “LBinary a brand of Targaryen Holdings Limited, Suites 41/42 Victorya House, 26 Main Street, Gibralter” while on the ‘Contact LBinary’ page they provide us with: “LBinary© […]
CySec ‘Clarification’ The latest CySec iOption announcement from CySec today (http://bit.ly/1dw1ju0) now states that iOption has not ‘settled its obligations’. Whether this means that there was an error in communication, interpretation or that CySec discovered that iOption were telling ‘porkies’ it is doubtful we’ll ever know. What is clear that CySec’s lax attitude to regulating the binary options sites needs to be reviewed. Whether […]
Announcements from CySec today re: CySec iOption Status Although according to CySec iOption has settled all its obligations (http://bit.ly/1dRmvyn) the http://www.iOption.com website still states this morning that “All client funds are being duly returned via the Company’s normal withdrawal process.” Let us hope that CySec’s version of events is the correct one although it is unsatisfactory that a regulator appears to just take the […]
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.
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