What are binary options?
Binary options trading is very popular among traders. Binary options can buy an asset. Buyers have the opportunity to successfully predict price rises or falls and obtain fixed income(almost twice as much as the investment). Using binary option trading, investors will have the opportunity to obtain a large amount of income in a short time. Binary can be regarded as an activity with two possible outcomes. One is “Yes” and the other is “No”. This means that the results are not as expected.
The Significance of Binary Option Trading
The actual word binary means two kinds, so in binary option trading, it refers to two possibilities. If the trader invests a fixed amount in the binary option, if the option succeeds, the trader will get a profit of the fixed amount; if the option fails, the trader will lose his investment amount, and the binary option will lose his investment amount. Turn the ruler into a simple direct process investment product.
Buy and sell options
A call option represents the purchase of a binary option at a predetermined price on a predetermined date(maturity date).
On the other hand, if a call option means that you can buy, a put option is an option to sell assets at a predetermined strike price before a fixed maturity date. If the buyer thinks the price will fall, the obvious choice is “price” plus “price”. “put”; option
Example:
The trader chose to invest in crude oil stocks. He bought 150 shares, and he had to predict whether the price would rise or fall on the maturity date.
In addition, he has the opportunity to choose the expiration date. At present, it is logical to observe the current execution price.
If the selling price or expiration price is $50/option, the trader believes that the price will exceed $50 when the option expires and hopes to buy 20 options for every $100. In this case, the trader will obtain the agreed yield.
If the yield reaches 82%, it will get 182 dollars/option x20, totaling 3640 dollars, and the trader will get a profit of 1640 dollars. If the price is finally higher than the execution price, the trader will lose its initial total investment.
How to Start Binary Option Trading
It is recommended to search online for binary option brokers strongly recommended by other traders, find detailed comments, and compare brokers among them to better meet your needs and find brokers that meet the high-quality binary option intermediary standards.
A good suggestion is the HY binary option, because it provides traders with the following benefits:
• 35 years of operational history
• Binary account, $250+free impersonation account
• 50% bonus
• FCA Management Agent
• 82% of awards
• Complete product options
