A binary option trading is a fixed return option, because there are only two possible outcomes that are fully realized in the beginning of the contract. Moreover, a binary option is a contract that gives the buyer the privilege, but not the responsibility, to acquire an underlying benefit at a fixed price within a specified time frame. The main advantage of trading binary options is its simplicity. You can only be “in the money” or “out of the money”. If you think that the benefit might move up, select the up arrow in most binary platforms. If you think you decrease, select the option below and place your cost. You can then notice what the benefit is working in real time and wait until the position expires. It cannot be simpler than that.

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Trade Currencies, Commodities, Stocks or Indices

The products traded are known as underlying assets and may be a range of products: currencies (e.g. USD / JPY), commodities (e.g., oil, gold), stocks (e.g., Microsoft, Coca Cola) or indices (e.g.  NASDAQ, FTSE 100). Strike price is the fixed price at which the owner buys or sells. When dealing with binary options, the purchaser of the selection makes a decision whether he thinks the underlying asset at the strike price will be at the selected expiry time – this could be the end of the nearest hour or end of day, week or month. The owner places a trade binary options call if he thinks that at the time of option expiration will be higher than the current price. Place a put option if you believe that at the time of maturity of the option will be lower than the current price. Thus, a binary option trading is really adaptable. The benefit, expiration time and predicted asset direction may be controlled by the owner of the investment that you can select each according to his desire. The only unknown factor is whether the asset expires higher or lower than the current price.

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your binary options compassThe yields of the binary options transactions are defined from the beginning of the agreement. If the choice expires in-the-money then a buyer will receive between 65-71% profit on the asset total. If the choice expires out-of-the-money, then with any option (TM), the buyer will receive a refund of 15% of their initial investment. The certainty of binary options trading is a preferred method of trading for many investors because it is not only known as a potential gain of compensation, but more importantly, the potential loss is fixed and will be called to fill a investment which ended out-of-the-money.

Thus, trade binary options work as: Investor A invests $ 100 in a choice of buying oil, with a return rate of 70%, with a final time of expiration day. The current rate is 65.9001 oil. If at the end of the day, the oil price closes at 65.9002 or higher, then the investor to receive $ 170. If it closes at 65.9000 or below, you will receive a refund of $ 15. The simplicity of binary option trading makes it an attractive and desired investment for many investors.

The difference with binary option trading is a traditional trade in binary options trading. The buyer is operating only in the performance of an asset – not actually own the asset itself.  For example, in a trading Microsoft stock option, an investor is not literally buying shares of Microsoft, but opening a contract if Microsoft shares increase or decrease in a specified time period. For its uniqueness, binary options have several advantages. They are easier to negotiate, since only a sense of the direction the asset will be moved when needed.

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There is a controlled risk known from the beginning of the contract – the two possible outcomes are pre-determined and fixed by the buyer in terms of how much you spend on the option. For trading binary options to be profitable, the only option that move in the expected direction – the magnitude of the measure is not relevant is therefore easier to receive a payment. Binary options trading is extremely flexible, because multiple due dates and times, the assortment of underlying resources on proposal and the ability to trade online without the need for a broker. Therefore, if you are a new investor in the world of options trading or a trader once used for traditional trading market, it is recommended to try their hand at the phenomenon that is the binary options trading and see how it can work for you.

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