BINARY OPTIONS - SIMPLE. QUICK. PROFITABLE.
Binary Options, also known as Digital Options, all-or-nothing options, or Fixed Return Options (FROs), have been available since the middle of 2008 and are simple for any trader - novice or expert - to understand.
The Binary Option is in essence nothing more than a prediction about which way the price of a stock, commodity, index or foreign currency will move by a designated expiration time. With Binary Options, you never purchase or own the asset – as you’re only predicting the direction that the asset will go. There are only two possible outcomes and the price of the asset does not matter. As far as you’re concerned, all that matters is if your prediction was correct or incorrect.
Through the OptoSpot platform, you simply:
1. Choose the asset you want to trade
2. Click on “CALL” if you believe the asset price will rise by the expiry
time, or “PUT” if you
believe that the price will fall
3. Wait for the outcome
4. Collect your profits
Binary options fall under the umbrella of exotic options but within financial market they are often referred to as digital options. Whilst digital options are very simple to understand and easily traded, the calculations behind the pricing is sophisticated, and for this reason they are considered exotic options.
Digital options are usually traded OTC (over the counter) across all assets in financial markets but more commonly used within the Forex and Interest markets. More recently numerous stock exchanges have produced listed digital options on selected stocks, commonly known as FRO (fixed return options). Today the CBOE offers fixed return options on S&P500 and VIX, also 20 stocks were listed on the AMEX in 2008.
Advantages of Trading Binary Options
Controlled Risk – The percentage return is known from the outset, as is what you stand to lose.
Simplicity – You only need to make a simple prediction i.e. ‘Will Google´s stock price have increased/decreased at expiry?’
Hedging opportunities – A safer option to take if a trader has an open position elsewhere in currency, stocks etc. Utilizing a binary option can eliminate a further loss elsewhere.
Punctuality – Binary contracts are being issued around the clock, allowing traders to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities for binary traders.
