Latest binary options news
On determining their decision CySEC took into account that WGM Services: “…..reached a compromise and compensated a number of clients to whom it provided the investment service of portfolio management…..”. It would seem that any client that lost money via this fraudulent activity of providing portfolio management should have all their losses returned to them. Point G is the most damning though with the […]
Binary Option Trading – Introduction In the ‘Binary Option Trading’, we will demystify the binary options market by explaining how all the binary options instruments (strategies) work, as well as how the market itself operates. Structure of the Binary Options Market The binary options marketplace is a relatively new financial market. In this market, the way profits are made is a bit different from the […]
Global Economic Calendar
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. Forex is the most popular asset traded in the binary options retail space but indices, commodities (i.e. gold and oil) and equities also have their following.
Trading the markets using binary options has become increasingly popular over the last few years because they provide investors a limited risk, low-cost way of speculating on financial markets. This contrasts with the high-risk trading provided by leveraged Forex, CFD and spread betting. Overall, binaries provides a safer way for beginners to trade financial markets and unmatched gearing for the experienced market operator.
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 binary options instruments 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.