Binary option

Oct 21
12:14

2014

Marina Vlasenko

Marina Vlasenko

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Binary option (digital option, the option of "all or nothing" option or fixed return) - an option that, depending on the implementation of the agreed conditions at the agreed time or provides a fixed amount of income

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Binary options anyoption ™ - an exciting new type of investment. Instead of buying the asset itself,Binary option Articles investors can speculate on the determination of the direction in which, in their opinion, will move the price of the asset. When buying a binary option platform anyoption ™, create a contract which gives the buyer (also referred to as the investor) the right to buy the underlying asset at a fixed price at a specified time interval from anyoption ™, as a seller.

Binary options are also called options "all or nothing" digital options or options with fixed income (FRO), implying that there are only two possible outcomes are (0-1), both of which are known in advance to the buyer of the option.

Trading binary options platform anyoption ™ goes something like this: The investor buys a binary option to Microsoft for $ 100, assuming that the end of the day Microsoft's stock will cost more than currently. If this is so, we will pay 71% of income from this investment.

Result of the operation with a binary option: 1 - If at the end of the day Microsoft's stock did rise, we will pay an income of 171 dollars 0 - If the stock price declines, we will pay the investor compensation in the amount of $ 15

This means that when you buy a contract the investor knows in advance that he will receive, or 171 USD or compensation in the amount of 15 dollar. These figures are likely to be much greater at higher amounts of investment. Investments in anyoption ™ in the amount of $ 1,000 to contribute revenue 71%, which amounts to 1710 dollars, or compensation in the amount of $ 150. The above differences are characterized by the following factors: 1 short expiry time of the option means that investors can get an instant income from binary options. In addition, a more flexible way of investing in options.

2 In the course of operations with vanilla options investor pays for the contract (eg, Points). Consequently, the amount of income or loss of the investor depends on the difference between the level of expiration and the strike price, expressed as a number of points. In the case of binary options from the very beginning there are only two versions of events.

3 When investing in binary option trading, they remain at the investor prior to the date of expiry. Therefore, you should be more careful when buying, because after purchase they can not be sold.

Trading binary options platform anyoption ™ - a new and interesting method of investing in the financial markets. Binary options are more understandable and flexible than traditional options, but, as with any investment, pre-planning is an important part of our future success.

 

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