Binary options are financial options that come with one of the two return options: a fixed number or nothing. That’s the reason why they call binary options because there are no other terms. The location behind binary options is simple. Yes?
Trading traders by considering that they believe that the answer is yes or not, making it one of the easiest financial assets in trading. This simplicity is effective in a wide appeal among traders and newcomers to the financial market. Traders should understand how binary options work, however, the market and any time frame, they can be traded with binary options advantages and disadvantages of these products.
Binary options trading outside the United States often have a different structure from the existing binaries in the US exchange. When considering guessing or hedging, binary options is an alternative.
United States binary options explained
Binary options provide ways to trade markets that are at risk. And limited profitability, based on the offer, yes or not
Let’s take a look at the following question as an example: The gold price will be higher than $ 1,250 at 13:30 hrs. Today or not?
If you believe it will be you buy binary options If you think that gold is below $ 1,250 at 13.30 hrs. You will sell this binary option. The price of binary options is between $ 0 and $ 100 and as well as other financial markets are bidding and asking the price.
The above binary may be traded at $ 42.50 (bidding) and $ 44.50 (proposal) at 13.00 hrs. If you buy a binary option, then you will pay $ 44.50. If you decide the right selling, you will sell at $ 42.50.
Suppose you decide to buy at $ 44.50 if at 13.30 hrs. Gold prices are higher than $ 1,250. Your options will expire and will be worth $ 100. You can profit for $ 100 – $ 44.50 = $ 55.50 (delete with this fee). That is money But if the gold price is lower than $ 1,250 at 13.30 hrs. The option will expire at $ 0, so you will lose $ 44.50. This is called out of money.
Bidding and proposals are fluctuating until the option expires. You can close your status at any time before expiration to lock in profit or reduce losses compared to letting it out of money.
Important issues
Binary options will depend on the offer. Yes or not and comes with a fixed amount or nothing.
These options are equipped with the possibility of risk renewal or potential. And are traded on Nadex
The bid and bid price is determined by the trader by itself as they assess whether the probability is determined. Is it true? Each NADEX trading agreement has a cost $ 0.90 to enter and $ 0.90 to issue and the fee will be renewed at $ 9.
The commitment of bidding and asking
Bidding and asking will be determined by the trader itself when they assess the probability of the proposal that is true or not. It is simple if bidding and asking binary options is 85 and 89, respectively. The trader is considered very high that the results of binary options will be yes and the option will expire worth $ 100 if the offer. The price and request is near 50 traders. Not sure if the binary will expire at $ 0 or $ 100, which is the odds.
If bidding is asked at 10 and 15, respectively, that means that the trader thinks that there is a high possibility that the results of the options will not be and expires worth $ 0. The buyer in this area is willing to take a little risk. For great benefits, those sales are willing to receive a little return, but there are a lot of opportunities to make a profit for a large risk.
Binary options trading sources
Binary options trade in the exchange of NADEX, the first legal exchange of the US focuses on the NADEX binary options or the North American derivative market offers binary options optional trading platform which traders can access. Through a real account or account Trading platform provides real-time charts with direct market access to the current binary options price. Binary options traded in Nadex, which is a derivative market in North America.
Binary options are also available via Chicago Board Options Exchange (CBOE). Everyone with a broker account that has been approved by options can be traded.
Fees for binary options
Each NADEX trading agreement has a cost $ 0.90 to enter and $ 0.90 to issue a limited fee at $ 9. Therefore, the purchase of 15 lots will still cost only $ 9 in entry and $ 9 to out.
If you hold your trade until it is paid and completed in money, the output will be assessed to you when expired. But if you hold the trade until it is paid But the money is completed, there will be no assessment of trading fees. The cobe binary options are traded through various options brokers. Each cost of your own commission.
Choose your binary market
Many assets can be traded through binary options. Nadex offers trading in major indexes such as DOW 30 (Wall Street 30), S & P 500 (US 500), Nasdaq 100 (US Tech 100) and Russell 2000 (US SmallCap 2000). Global level for the United Kingdom (FTSE 100), Germany (Germany 30) and Japan (Japan 225).
Trading can be placed in a forex pair: EUR / USD, GBP / USD, USD / JPY, EUR / JPY, AUD / USD, USD / CAD, GBP / JPY, USD / CHF, EUR / GBP including AUD / JPY.
Nadex offers binary options commodities related to crude oil prices, natural gas, gold, silver, copper, corn and soy.
Trading news events are possible with binary options events. Buy or sell options depending on whether the US central bank will increase or have a decrease rate or whether the applicant, unemployment and non-agricultural employment will come in the above or lower than the consensus expected.
Choose the time frame you choose
Traders may choose from NADEX binary options (in the top asset category) that expire as hourly, daily or weekly.
Hourly options provide opportunities for daily traders, even in a quiet market condition, to get the exact return if they are correct in choosing the direction of the market in that time frame.
Daily options will expire on the last day of trading and are beneficial for daily investors or those who want to prevent the risk of other Forex stocks or commodity holdings to the movement of that day.
The weekly option will expire at the end of the trading week and is traded by swinging traders throughout the week and by daily traders as an expired method of options on Friday afternoon.
The contract based on the event will expire after the official news release associated with the event. And to allow all traders to hold the position well in advance – and until the expiration period.
Trading fluctuations
Any fluctuations that are recognized in the reference market will also lead to binary options pricing.
Consider the following example. Binary EUR / USD 138 has 1½ hours until expiration, while the EUR / USD currency pair is traded at 1.3810 when low volatility, one day, 138 binary may be traded at 90, that is because of the EUR / USD point. There may be many expectations of movement. Binary has already been 10 pips while the reference market is expected to be stable. The opportunity that the buyer will be paid $ 100 is high.
But if the EUR / USD moves greatly during the binary volatility trading may be traded below 90 due to the uncertainty of the market. When this happens, the pricing is tilted to 50. This is because the initial participants of the binary have the same weight due to the market trend.
Advantages and disadvantages of binary options
Different from real stocks or markets, Forex with a price gap or slippage can occur. The risk of binary options is limited. It is impossible to lose more than the trade cost.
Better returns, the average is possible in a quiet market as well. If the stock index or forex partner is almost impossible to make a profit But with binary options, the payment will be known. If you buy binary options at $ 20, it will be judged at $ 100 or $ 0, making you $ 80 from your $ 20 investment or losing $ 20. This is the 4: 1 ratio per risk, which is an opportunity. The flip side of this story is that your profit is always limited, whether the stock or forex parties will move in any direction. Most binary options are worth $ 100. The purchase of multiple options is the method.
Because the binary options are worth $ 100, which allows traders to access even with limited trading capital due to trading restrictions on traditional stock days will not be effective. Trading can start with a $ 100 deposit at Nadex.
Binary options are derivative from reference assets that you do not own. You do not have the right to vote or dividend that you have the right to receive if you are the real stock owner.
Advantages
- Risk is restricted
- Better than the average return
- Paying is known
Inferior
- Profit has been extended.
- Derivative can be changed
- Binary options are limited in the United States
- Bottom line
Binary options will depend on the offer. Yes or no. Your profitability and loss opportunity is based on the purchase or sale price and the option is worth $ 100 or $ 0 or not. The risk and rewards are limited.
Binary options within the United States are traded through the exchange of NADEX and CBOE. Foreign companies persuade Americans to trade binary forms. Their options are often illegally implemented. Opinion binary trading has few obstacles in entering. But just because it’s simple does not mean that it will be easier to make money as well. There are others on the other side of the trade that think they are right and you are wrong.
Trading with the capital that you can lose and trading the sample account so you feel comfortable with the work of binary options before trading with real money.