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investment opportunities

Charting Your Way To Success In Binary Options Trading

Binary Options Trading is an emerging investment opportunity that is being touted as an investment scenario wherein the risk and reward are fixed, leading to a situation where the probability of getting a return is much more as compared to traditional derivative or equity investment options. But, just like any other investment option, to succeed […]

By binbet.com | Charting | binary options, investment opportunities, price charts, technical analysis, 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: investment opportunities

Charting Your Way To Success In Binary Options Trading