A beginner’s guide to Binary Options
This article goes out to everyone interested in making a decent profit through stock trading. There are numerous possibilities when it comes to stock trading but the latest and hottest trade option appears to be Binary Options. As Binary Options might be new to some of you, we will therefore go through some of the basics, as well as the advantages of such trade option. First off, let’s see what Binary Options are all about. In stock trading jargon, Binary Options are considered as “exotic options” since they are regarded as a rather new trade option. Although the term might seem a bit fancy, Binary Options are actually one of the simplest stock trading possibilities out there, accessible to both newcomers and experienced trade option players. One advantage that Binary Options present is that they offer the trader access to stocks, indexes, commodities, foreign exchange, everything that stock trading has to offer. Binary Options are therefore also regarded as a fixed-return trade option since they put forward a fixed expiry date and time. In stock trading jargon, this is known as the strike price, an established limit around which such a trade option revolves. In other words, when you join the stock trading market, you will have to wager as to how the market is bound to react. When using such a trade option, you will therefore settle on a strike price and a certain time-frame in which the market must move in the direction you have predicted. If the price is on the right side of the strike price after the time-frame to which you have committed expires, then you will make a profit. What’s interesting to note about Binary Options, in comparison to other trade option possibilities, is that the trader wins or loses a fixed amount, regardless of how much the market moved in a particular direction. Therefore, there are two other stock trading terms that you need to know when it comes to Binary Options. Say you consider that the market will be moving up, you must purchase a “call”. On the other hand, if you consider that the market will be going down, you need to purchase a “put”. In order to make money when buying a “call’, you will have to be above the strike price when the trade option expires. In order to make a profit through buying a “put” then the profit must be under the strike price when the trade option expires. When it comes to Binary Options, it’s as simple as that. Now, what sets apart Binary Options from other stock trading possibilities is that you always know how much money you can win or lose. Whereas with another trade option, risks and rewards fluctuate as to how the market moves, with Binary Options they remain the same. Moreover, such stock trading instrument involves no hidden fees or other expenses and there are no liquidities involved. As no liquidities are involved, brokers can put forward a wide range of strike prices and expiry dates to choose from. Finally, by choosing this stock trading instrument, you will have instant access to all sort of asses classes on the global markets. Stock trading can not get much easier than with Binary Options.
Anne is a blogger for many years and is specialized in digital marketing. Here she describes her views on the advantages of trade options like binary options, stock trading, and trade option.
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