With the advent of the Internet and advanced technologies and the development of increasingly sophisticated methods and commerce has become strong and powerful as never before. One of the most important trends in the world of commerce today is the field of binary options - an exciting way to make money to take advantage of market movements - and the kind of choices may seem unfamiliar to some, as does not look like usual ways to trade options, but he caught on quickly, especially on the trading platforms online.
Overall option is a contract between two parties whereby buy out certain specified price during a specified period of time. Applying this concept in the world of currency we will get to know that option is a contract to buy a certain currency at a specified price during a certain period, and an example of this, the euro can be purchased for $ 1.5 that the option expires on the first day of the month of April. This option is likely duo only two outcomes, either full payment or loss of the entire amount of the investment. There are other names for this type of trade, including the option of all-or-not, particularly in an environment of forex options.
How binary options work?
In the primary analysis, the binary options work similarly to a large extent to the way traditional options. When you invest in binary options, you basically take a financial center with or against a particular result, and if ratified your expectations, you get or win a fixed amount and specific since the beginning and if the opposite happens, you lose the full amount invested in the purchase or sale of the option.
As an example of this, suppose you buy a binary option comes with a yield of 81% was determined exercise price or execution for a couple of Euro U.S. Dollar closes higher level 1,500 by the first of April. If you made the decision to purchase it means you believe that this result will be achieved and if taken a decision to sell it means the opposite bet not to check this assumption that the euro-dollar price close below the 1,500 level at this time, at the beginning of the month of April.
Most binary options contracts pay 75% to 85% return on the initial investment. Going back to the previous example if the amount invested U.S. $ 100 for the option to trade Eurodollar duo with a broker offers a return of 81% will be the total potential profit from the transaction is U.S. $ 81.
As you can see, the binary options are a very attractive way for those who want to reap the profits of many without great risk. Binary Option has a lot of potential profits for traders without going into landing options, and the usual rise in the world of forex and stock trading. Keep reading our blog and learn more about this exciting field of binary option trading.
