6 Features About Binary Options PlatformsSeptember 6, 2019
Binary options are fixed return options because they come with only 2 possible outcomes. It is a contract which gives the buyer a right to buy an underlying asset at a predecided fixed price within a specified time limit. The security that is being traded is known as the underlying asset and can include commodities (e.g. gold, silver, nickel, lead, and oil), currencies (USD/JPY), stocks (e.g. Apple, Microsoft, IBM) or stock indices. The price at which owner buys or sells is known as the strike price.
Once the contract expires and the guess is accurate, you’re “in the money”. Return on investment for binary options signals vary between 150% up to 185% of the initial investment. Here is a good example of this outcome.
There are various jargons pertaining to this business. For a beginner, it will not mean much at the beginning, but it is vital that they spend the time and effort to learn it. This is because all seasoned traders will be using such terminologies to address a situation. It would not be too bright of you to ask for translations every now and then. The sooner you become comfortable with the trading terminologies, the better!
After analyzing the chart we can predict that it will lower by expiry, so we can buy its LOW(Put) by investing 10$( Its users capacity and it can be multiples of 10$ ) we can earn 80% profit if ABC share expires below 1615.
The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.
You can decide how much money to spend on each digital option, which means you have total control over their investments and risks. Considering all the above advantages, it is no wonder why more and more trader’s amateur and professional start trading binary options and makes a steady income from it.
Apple share prices are currently selling at 334.20. You could try to buy a number of stocks, but binary trading is quicker and easier. By looking around you will see that these shares have dropped over the past few hours, but you think that in an hour the stocks will rise. You buy three binary trading contracts for $5 at 45, so that’s $675 (three stocks at $5 at 45) at 12pm. Sounds like a lot of money, but at 1pm the Apple share prices are at 334.60. That’s a rise, so your ‘bet’ has paid off. Three options at $5, with a difference of 55 means you get $825, a profit of $150. I don’t know of any job that pays $150 an hour.