What is binary option.
Binary option - a system of instant contract, according to which the alleged behavior of selected assets on the stock exchanges, namely their fall or rise over time.
Exchange trader chooses assets with which it will work, and indicates the forecast of their behavior in the market. It is further alleged in payout won, and the amount of compensation for a loss, as well as the specific rate and time of completion of the option. In other words, you do not buy the assets themselves (be it currency , precious metals, oil , stocks , etc.), and bet on their behavior in the market , building on the current changes that affect their price. Thus, the trader can raise money even at the minimum jumps assets, not even thinking about the necessity of obtaining of the original.
Managed risks - a characteristic feature of binary options is the initial notice in the trader about the risks. You know exactly the amount that will be able to win a preliminary assessment of the risks, even before it had a deal. Ease of operation - depends only on the change factor prices, and hence: profit requires less information, and items. That's why binary options are popular not only among experienced traders, but also among those new to the trade.
The relative availability - achieved value for money in itself is not an asset, and in the contract for the predicted price movement. This is what allows us to overcome the price threshold, which is not all traders can overcome when dealing with tangible assets (precious metals, oil, currency pairs, etc.) Profitability - perhaps this is one of the root causes of popularity of binary options abroad, since this figure is often more than the profit from similar rates but with the assets. Here it is sufficient to predict the behavior of assets otnoshetniyu to the current point (growth or decline) to get the result.Profitability - perhaps this is one of the root causes of popularity of binary options abroad, since this figure is often more than the profit from similar rates but with the assets. Here it is sufficient to predict the behavior of assets otnoshetniyu to the current point (growth or decline) to get the result.
Binary options have been functioning in the market since the year 2008 and first appeared on the Chicago Board Options Exchange (CBOE) and the options are European style so-called All-or-nothing. Although if you dig a little deeper , we can understand - the emergence of binary options in the OTC market originated much earlier. Certainly , the growing popularity of binary options required relatively simple, where in most cases the basic rule of winning option is only correct choice of the direction of movement of assets (call, or put). In other words, there is no need to accurately determine the extent of the growth or decline of exchange of assets for possible revenue from the purchased assets , but only to anticipate higher prices or price reduction of their market value. In addition to all the above, you can immediately evaluate the gains and risks of a particular amount that is fixed and the transaction itself.
Here's an example: the current market value of gold is 1313,014 at 12:15, at 13:00 it reaches 1316,470. The price for gold rose and Call transaction during this period became profitable for the asset and within an 80% income out of $ 1,000 it makes $ 800 profit in 45 minutes. But do not forget about the low degree risk rates, for example where the trader at 40% income receives significantly less profit and at the same time protects him/her-self from the loss of the entire amount bid at loss option and will receive compensation from the rate. In general, it is worth noting that the opinions on the effectiveness of various strategies of options vary much and each experienced trader prefers his/her already proven method.