The Basic and Advance d Understanding for Binary Options

The binary option is a trading system that relies on the falling (put) or rising (call) of the price of a product such as a stock or a currency over a period of time.

It is called binary because only two issues are possible:

  • The option ends favorably “in the money” and you get the fixed amount that depends on the initial investment,
  • The option ends unfavorably and you lose all of your investment.

To date, any investor can have access to binary options. In the past, it had to be taken by a broker.

But this is best for savvy investors as the novices would be in a position to lose a lot of money.

Definition of a binary option

Under this word that may seem barbaric is actually hiding some really simple things! Binary is in relation to 2 choices: the fall or the rise. You therefore opt for a binary option as soon as you lower or increase a product. The product could be an action (a part of the Apple Facebook company among others) or a gold bar or a barrel of oil. The prices of these fluctuate regularly. The reason for these fluctuations is the market law that is determined by supply and demand. Make a visit to https://fraudbroker.com/review/fbs/ for getting the core idea now.

You have to let professional software manage the work for you

The binary options robots have been deployed with the objective of trading instead of the user. They follow the lines of a truly accurate algorithm that gives them the ability to continuously analyze markets and position themselves at the right time. Beginners really appreciate these robots.

The law of the market: understanding the Offer, the Demand and the way prices are determined

There are different types of binary options:

The binary option cash or nothing or high / low

This is the binary option which is the most usual. You opt for a term and bet on a decline or an increase in assets. If at the end of your term, your assumption is correct, you get the gain that is agreed at the time of the transmission of the order. Otherwise, you lose your investment.

The one-touch binary option

You always set a deadline and you expect the price of the asset to reach a certain level. You get the gain if the asset price reaches that level before the end of the term. Otherwise, you lose your investment.

The no touch binary option

Same rule as the one-touch binary option except that you bet that the asset will not reach the determined level before the end of the term. You therefore get the gain if the price of the asset does not reach the level. Otherwise you will lose your investment.

The boundary or zone option

For this “zone” or “out of area”, also called “boundary”, you bet that the asset will close in an already defined zone.

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