Options trading-Binary digital options trading
Options Binary – Binary Options Trading
The simplicity of trading Binary Options •
Binary Options contracts have long been available over the counter and were considered to be an “exotic” instrument, without any liquid market for trading them
In 2007 the OCC (options clearing corporation) has proposed a rule change to allow Binary Options trading followed by the SEC (Securities and Exchange Commission) which approved listing of such instruments in 2008.
In 2008 AMEX (American stock exchange) has launched European, cash-or-nothing, Binary Options options, and CBOE (Chicago board option exchange) followed with its own launch in June 2008.
Binary Options simplify
Binary Options simplify Binary Options Trading •
Binary Options simplify option trading around the globe since it only has to possible outcomes..
If the trader believes that the instrument will close above the current price he chooses a “call option”, on the contrary, if he believes that the instrument will close below the current price he chooses a “put option”. .
If his predictions are correct he will receive the fixed payout rate as stated on the option itself (it usually varies between 60 to 70 percent). .
Yes it’s that simple, so just start trading.
An option is a contract between a buyer and a seller that gives the buyer the right—but not the obligation—to buy or to sell a particular asset (the underlying asset) at a later day at an agreed price.
And so there are two ways of “holding” an option, a call option and a put option.
Call option- allows its buyer the right to buy the underlying asset from the option seller at a given price. .
Put option- allows its buyer the right to sell the underlying asset to the option seller at a given price. .
In return for granting the option, the seller collects a payment (the premium) from the buyer..
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