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We have revolutionized the way binary options are
traded on the internet today, by supplying its customers with a
simple, exciting, dynamic and highly profitable trading platform, very
different from traditional option trading. Binary Options trading
arena. Binary Options allow you to gain up to 75% on your investment
within an hour when the option expires "In The Money" A binary option
is an option type that at expiration either pays off a fixed amount or
nothing at all. Let's say XYZ is trading at 95 and the 100 binary call
option is offered at $2 with a fixed payoff of $10 if the stock closes
above the 100 strike. Below 100 at expiration you lose your entire $2
and above 100 at expiration you make $10. Simple. One or the other.
The option pricing model is merely the odds of whether XYZ will close
above the 100 strike or not.
Binary call and put options are popular in the platinum market, struck
on the mid-market price of the metal of a certain quality, quoted by
several dealers over a stated time period. Platinum trades in large
varying quantities among major producers and manufacturers, as well as
between speculators and dealers.
Binary Options are cash-settled, European-style
options. If, at expiration, the option settles in-the-money, the buyer
or seller of an option receives a pre-specified dollar amount.
Similarly, if the option settles out-of-the-money, the buyer or seller
of the option receives nothing. This provides a known upside (gain) or
downside (loss) risk assessment, and unlike traditional options,
Binary Options provide full payout with even a single pip of movement.
In the United States, there are a few places
where Binary Options can be traded. The Chicago Board of Trade (CBOT)
offers Binary Options trading on the Target Fed Funds Rate. To trade
these contracts, traders must be members of the exchange or investors
are required to trade through such members to execute a trade – the
value of each contract is $1000. The other exchange that offers
trading on Binary Options is the HedgeStreet Exchange. Similar to the
CBOT and NYMEX.
A trader of Binary Options needs to anticipate
the expected direction of the price movement of the underlying asset.
Unlike traditional options, knowing the direction of the price
movement, as well as magnitude of the movement, is not required. If
the investor has an opinion about an underlying asset and wants to
place a trade, s/he can trade Binary Options.Who Needs Binary Option
Trading? Binary option trading is such a recent invention in the
markets, that many traders do not realize just how they could use it
to good effect. In case you don’t know, binary options get their name
because the result is “binary†| |
