Binary Options Trading What You Should Know about it?
Guest post by Forex Guru.
Binary options are a simple way for the circulation of price fluctuations in multiple global markets, note that rolling must understand the risks and gains on options which often can not be understood. The binary options, also referred to as digital options, vary from the traditional options.
So what are binary options?
Binary Options it is, although characterized by some strange, infinitely easier to trade and understanding on a functional basis. These options make it easier for investors to access stock indices and commodities and global financial markets, characterized by that a predetermined paybacks, so that the option has an expiration date, in addition to the so-called “execution price.” If staked rolling in the right direction for the market, and the price was a time lapse on the right side of the execution price, caught yield predetermined, regardless of how high the tool. The trader who gambled on the wrong direction of the market, face the loss of a predetermined amount of the amount invested, may lose the whole amount.
In order to win the appeal, it must be higher than market price click on “CALL” at the expiration date long option. In order to win the “PUT”, the market price must be lower than the rate of implementation time of expiration, noted that the rate of profit and loss is detected them at the beginning of trading.
To take a specific example to help us understand it. Expected rolling through observation and follow-up of index S & P 500 buy option appeal binary for this indicator known American, which stands for a moment buying 1105 points, and find a mediator presents this price as the rate of executive, that comes expire before the end of the session the market for that day. It is possible to buy binary options for different periods of time, start in minutes and the end of the months, and with different types of execution prices. And find Mtdaolna at a brokers the possibility of buying the option pays 70% of its value in the event of the expiration of the option over the exercise price, but if the option has passed the point where the price has dropped below 1105, investor lost 90% of the amount of the option. And the investor can usually employ between $10 and $10,000 per option. If invested $100 in the binary option will come expire after 30 minutes, will teach after this time whether he had won or lost $70 $90. In case of achieving execution price is the same price expected by the investor, in usually takes the amount invested without loss or gain.Therefore, the correct learning is first step to make money with binary options trading industry.