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Tuesday, 23 February 2016

BINARY OPTIONS TRADING ( Introduction in a simple way )

Whatz up guys and welcome to another post on one of the online business am doing.. Am sure this will not be new to you as you will have been seeing BINARY BINARY every where on the internet. This post is just to ope your eyes to what the business really is.

 According to WIkipedia, In finance, a binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount (or a precise predefined quantity or units of some asset) or nothing at all (in contrast to ordinary financial options that typically have a continuous spectrum of payoff).


For example, a purchase is made of a binary cash-or-nothing call option on
XYZ Corp's stock struck at $100 with a binary payoff of $1,000. Then, if at the future maturity date, often referred to as an expiry date, the stock is trading above $100, $1,000 is received. If the stock is trading below $100, no money is received. Under some contracts if the stock is trading at exactly $100, the money is returned to the purchaser.

The word binary stands for “having two parts”. Generally speaking, all you need to do is predict either “Call” or “Put“, IN or OUT, TOUCH or NO TOUCH, DIGITS and so on...  Binary Trading has only two investment possibilities for you to predict and then choose between.

One investment possibility is expressed when you predict that the price of the asset will rise, this type of investment is named “Call” option. The other possibility is presented when you predict that the price of the asset will fall, this type of investment is named “Put” option.
Choosing an asset is the first step of your investment.

For instance, if you have an interest in gold prices, you may choose to place a binary investment in gold. Obviously, the more familiar you're with the gold market the better your chances are of successfully predicting the fluctuations of gold prices.

TO BE CONTINUED...

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1 comment:

  1. This was really an interesting topic and I kinda agree what you have mentioned here! Binary Options Demo Account

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