Tag Archives: binary trading options

binary trading options

Commonly Asked Questions When It Comes To Binary Options

Because binary option trading is only gaining popularity in the recent past, not many people know the logic behind it or even what it means. You should note that this kind of trading can help you make steady cash or even help you make lots of bucks in a very short span. Anyone can get […]

How To Quit Your Day Job & Earn Your Livelihood Using Binary Options Trading?

You might have come across several different types of speculative investment options available in the market ranging from equity, derivatives, and bonds to futures, forwards, etc. But there is one kind of investment option that is different from the rest. That investment option is binary options. Binary options are different because unlike other types of […]

By binbet.com | How To Trade Binary Options, What are Binary Options | binary options, binary trading options, online trading | 0 Comments | Like

… But What’s a Binary Option?

A binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. The options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-style options.

For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.

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Tag Archives: binary trading options

Commonly Asked Questions When It Comes To Binary Options

How To Quit Your Day Job & Earn Your Livelihood Using Binary Options Trading?