What is Binary Option
The term binary options (BO) is the kind of concept of trading of the United States.
Currently trading with BO concept has been quite popular in Europe and
almost all over the world, but since 2008 the regulatory agencies The
Securities and Exchange Commission (SEC) only give permission for a
number of BO broker in the United States alone.
The term binary options should not be alarmed investors because this type of investment is actually quite simple. Before you go in and do the speculation with BO, you should know that there are only two possibilities every time you make a trade, such as the name of this type of trading is binary or two circumstances. You have the opportunity to reap profits for which you have defined previously, or you will not get anything.
Investing in a fund that you specified earlier does not mean you buy these assets, stocks, commodities, forex or stock price index. When determining the amount of funds that will you bet, you must also specify whether you want to enter in the option 'Call' or the option "Put". A Call option will expire (expired) "in the money" if the price of the asset is above the target price. This means that asset prices rise between the time when you invest and its expired time. The range of time can be one hour, one day or the next week since you invest.
Instead a Put option will expire (expired) "in the money" if the price of the asset is below the target price. This means that asset prices down between the time when you invest and its expired time. The term time-out (expired) "in the money" means that you will get paid, or you make a profit. Return you will gain typically ranges from 65% to 81%, and this should know before you invest. In the opposite case, the investor will not receive anything if the price of these assets was discharged time (expired) "out of the money".
Choosing limit runs out of time (expiration time)
BO investors can choose the time limit expired ranging from one hour, one day, one week and even month. The way you approach and analysis of the market and trading strategies you use will determine the timing expired. If you are a short term trader who used to use the time frame for 5 minutes or 15 minutes then you will tend to choose the time limit expired one hour.
But if you are a trader medium term or long term then you will tend to choose the time limit expired one day (daily). With a combination of trading analysis, you could open position Call if you expect prices to rise, or if the position Put your estimates prices will drop.
Choose a broker that provides facilities Binary Options
Not all brokers providing trading facilities by way of BO. Some brokers with these facilities also have rules different. You can see a brief description of some of the brokers which provide trading facilities BO here.
Trading with BO concept can be applied to the stock market called binary stock options, or forex market (forex binary options) and other types of markets. The future trading BO way is indeed uncertain. If the trend continues to rise, the number of interested persons would be more and more brokers providing trading facilities BO.
Source: www.bocrunch.com: What are Binary Options?
The term binary options should not be alarmed investors because this type of investment is actually quite simple. Before you go in and do the speculation with BO, you should know that there are only two possibilities every time you make a trade, such as the name of this type of trading is binary or two circumstances. You have the opportunity to reap profits for which you have defined previously, or you will not get anything.
Investing in a fund that you specified earlier does not mean you buy these assets, stocks, commodities, forex or stock price index. When determining the amount of funds that will you bet, you must also specify whether you want to enter in the option 'Call' or the option "Put". A Call option will expire (expired) "in the money" if the price of the asset is above the target price. This means that asset prices rise between the time when you invest and its expired time. The range of time can be one hour, one day or the next week since you invest.
Instead a Put option will expire (expired) "in the money" if the price of the asset is below the target price. This means that asset prices down between the time when you invest and its expired time. The term time-out (expired) "in the money" means that you will get paid, or you make a profit. Return you will gain typically ranges from 65% to 81%, and this should know before you invest. In the opposite case, the investor will not receive anything if the price of these assets was discharged time (expired) "out of the money".
Choosing limit runs out of time (expiration time)
BO investors can choose the time limit expired ranging from one hour, one day, one week and even month. The way you approach and analysis of the market and trading strategies you use will determine the timing expired. If you are a short term trader who used to use the time frame for 5 minutes or 15 minutes then you will tend to choose the time limit expired one hour.
But if you are a trader medium term or long term then you will tend to choose the time limit expired one day (daily). With a combination of trading analysis, you could open position Call if you expect prices to rise, or if the position Put your estimates prices will drop.
Choose a broker that provides facilities Binary Options
Not all brokers providing trading facilities by way of BO. Some brokers with these facilities also have rules different. You can see a brief description of some of the brokers which provide trading facilities BO here.
Trading with BO concept can be applied to the stock market called binary stock options, or forex market (forex binary options) and other types of markets. The future trading BO way is indeed uncertain. If the trend continues to rise, the number of interested persons would be more and more brokers providing trading facilities BO.
Source: www.bocrunch.com: What are Binary Options?
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