Online Binary Options Trading
If you have already traded binary options or are simply doing research to see if you want to trade options online then this article might help you answer some of the basic questions you may have. I am going to focus on binary options in this article because l like them the best but you can form your own opinion. I will also be recommending options platforms and how to find the right one for you. It is my hope that the information I provide here will aid you in your quest for successful investing and make life a little easier for you.
Binary options are the type of option that pay out either a fixed amount payoff, some type of asset or nothing at all. Before you purchase a binary option you will know the potential return being offered which is a nice benefit. There are just two types of binary options known as the cash or nothing or asset or nothing binary options. Because there are only two possible outcomes which are the potential return or nothing at all, they are called binary.
Binary options can be bought for either direction of a trade and also on most financial products as well. An investor who thinks the stock will go up invests in a Call and if he/she thinks it will go down a Put is in order. There is a certain amount of time that an option has to get to the point that will pay you if you choose correctly and that is called an expiry. Binary options are not to be resold after purchased so the purchaser will have to wait till expiry to get results.
An example would be a purchase is made of a cash or nothing binary call option for HFC Corp's stock struck at $100 with a binary payoff of $1000. If the stock is trading above $100 at maturity then the investor gets $1000. If the stock is trading below the $100 at the expiry date then the investor will receive nothing and will have lost the purchase price of the binary option. So to sum it all up, binary options training involves the risk of losing your capital that was invested in the binary option if at expiry the value is not what you needed it to be but the payoff you could receive will be known in advance and will help you to choose the options trades that are right for you.
Binary options are the type of option that pay out either a fixed amount payoff, some type of asset or nothing at all. Before you purchase a binary option you will know the potential return being offered which is a nice benefit. There are just two types of binary options known as the cash or nothing or asset or nothing binary options. Because there are only two possible outcomes which are the potential return or nothing at all, they are called binary.
Binary options can be bought for either direction of a trade and also on most financial products as well. An investor who thinks the stock will go up invests in a Call and if he/she thinks it will go down a Put is in order. There is a certain amount of time that an option has to get to the point that will pay you if you choose correctly and that is called an expiry. Binary options are not to be resold after purchased so the purchaser will have to wait till expiry to get results.
An example would be a purchase is made of a cash or nothing binary call option for HFC Corp's stock struck at $100 with a binary payoff of $1000. If the stock is trading above $100 at maturity then the investor gets $1000. If the stock is trading below the $100 at the expiry date then the investor will receive nothing and will have lost the purchase price of the binary option. So to sum it all up, binary options training involves the risk of losing your capital that was invested in the binary option if at expiry the value is not what you needed it to be but the payoff you could receive will be known in advance and will help you to choose the options trades that are right for you.
