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Introduction to the OptionFair Review 2015 This OptionFair review discusses the brand in detail, the site and functionality. OptionFair’s parent company, TechFinancials Group, also boasts ownership of the well-known and popular platform provider, TechFinancials; it will come as no surprise then that TechFinancials provides their platform to their sister company OptionFair. At the time of writing the TechFinancials Group has been listed on the […]
Tuesday, 21st April 2015 – Daily Market Analysis The latest daily financial technical analysis reports for Tuesday, 21st April 2015, are now available for you to view. The market reports are available for you to view in both video and PDF format. Forex View the latest FX technical analysis reports for today (21.04.2015) for the following currency pairs: AUD/USD (Australian Dollar vs US Dollar) […]
Ultra Short-Term Trading Binary options 60 second strategies have become very popular since their introduction a few years ago. Many of you may be aware that a certain Gordon Pape who has written an article on Forbes entitled ‘Don’t Gamble on Binary Options‘ suggests that the shorter the term of a financial instrument the more of a gamble it becomes: “……..no one, no matter […]
Bond Market 20-05-15 You need a very strong nerve to buy German 10-year Bunds at the current yield of 0.16pc, or French bonds at 0.43pc, at time when EMU money data no longer look remotely “Japanese”. Granted, there may be tactical reasons for buying Bunds, even at negative yields out to eight years maturity. Supply is drying up. Berlin is pursuing a budget surplus […]
20.04.2015 – Daily Market Analysis The latest daily financial technical analysis reports for Monday, 20th April 2015, are now available for you to view. The market reports are available for you to view in both video and PDF format. Forex View the latest FX technical analysis reports for today (20.04.2015) for the following currency pairs: AUD/USD (Australian Dollar vs US Dollar) EUR/USD (Euro vs […]
17.04.2015 – Daily Market Analysis The latest daily financial technical analysis reports for Friday, 17th April April 2015, are now available for you to view. The market reports are available for you to view in both video and PDF format. Forex View the latest FX technical analysis reports for today (17.04.2015) for the following currency pairs: AUD/USD (Australian Dollar vs US Dollar) EUR/USD (Euro […]
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.