Binary Options trading considered as one of fastest growing segment of simplified trading products.
Binary options are fixed-odds-return investment products that have two possible absolute outcomes with structured reward and risk, hence the word 'binary'.
Binaries are considered as a mass market financial instrument as it empowering traders with a very flexible trading approch without the complexities involved trading traditional vanilla options.
Whether you are looking for a short term speculation or hedging you portfolio binaries can help you get high payout within short trading durations as so, binaries are gaining popularity among traders globally.
Traders find stocks binary options and forex binary options as a very simplified trading tool helping them to trade the market with known risk and reward.
Binaries contracts are available on a variety of underlying assets: Stocks, Commodities, Currencies and Indices.
Whether the trader has made a call or put, if at contract expiration the trader has been successful with regards to the anticipated direction of the underling asset price then the contract will expire 'in the money'. On the contrary if the trader has been unsuccessful with the anticipated direction then the contract will expire 'out of the money'
When Binary Option contracts are traded before expiration then a contract 'in the money' will be more expensive than a contract 'out of the money'.
On the occasion when the expiry price is equal to the strike price the contract will expire 'at the money'. Normally there will be a fixed cash settlement to returned which is often the initial investment, however this is dependent on what was predetermined and agreed in the contract.
* How it works?
A Binary Option reflects specific speculation in financial markets that might happen during a specific time period.
For example: Google price is now share price is now: 430.25 and you want to speculate about the price movement of the share with a time frame of 1 hour.
If you think that Google will rise above this price level, than you should buy binary call option- if Google price will be above the current price level during expiration than the option expired [1], paying you the fixed odds return promised during the trade, If not than the option expired 'out-of-the-money'.
If you think that Google will fall below this price level, than you should buy a binary put option- if Google price will be below the current price level during expiration than the option expired [2], paying you the fixed odds return promised during the trade,f not than the option expired 'out-of-the-money'.
Binary options trading platform:
http://www.tradesmarter.com/options
Options trading platform
http://www.tradesmarter.com/platform/
Binary stock options
http://www.tradesmarter.com/wiki/Binary_stocks_options
Binary forex options
http://www.tradesmarter.com/wiki/Binary_Currencies_forex_options
