Binary Options
Binary options are a type of option that pays a fixed amount or nothing, whether a certain condition is fulfilled when the option expires. They are also referred to all-or-nothing options or fixed-return options. They are highly speculative vehicles in which the trader attempts to forecast the price direction of an instrument and then decides to bet whether the underlying asset price is going up or going down. They are available on a variety of underlying assets: Stocks, Commodities, Currencies and Indexes. These options are a completely different asset class than the listed security options we have been discussing throughout most of the rest of this website. They are not available for traditional online brokers. If you wish to trade them you must find a binary trading broker. Binary option trading is currently a fast-growing arena, especially in the non-US marketplaces. They haven’t caught on as well in the US. Some people like them because of their simplicity: You either win a certain amount or you lose. However, playing the binary market can be quite addictive. There is high risk involved. For most safe-options traders, these instruments should not be high on the list. For a good read about binary options, check out this title:
Return from Binary Options to Advanced Options
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