Binary Scam Watch Monitor | Support in Trading Binary Options Meaning of Binary Option A binary option is a type of derivative option where a trader makes a chance on the price movement of an underlying asset in near future for a fixed amount. A binary option is a monetary benefit, illegal by regulators in many administrations as a form of speculations and more binary option channel have been unprotected scams. This is apparently playing a role in asset pricing and is a form of monetary derivatives in which the payoff is either some fixed monetary amount. Binary Option a trader has to pledge on any one out of two options purchase & sale basis of two definite outcomes whether an underlying asset price will rise or fall in the immediate future, for which a trader will earn fixed amount if bet worked in his support. Binary options are also called as artificial intelligence options, one touch options, fixed return options and risk options. Binary options prime base is imperatively cash only settlement on the date of expiry of an option. This works on the look-alike lines like European style option. These options have a fixed payout for a trader, which has a best time limit considering the difference between the purchase date and exercise date of an option. An option automatically exercises or finish on the said date and it can't be carried out on next close date, and the option holder can't buy or sell the actual security. Binary option holder just bets on a motion whether certain security price will up or down in future date basis that he/she purchase/trade certain kind of option either call/put. These are Essential Factors of Binary Option i. ii. iii. iv. v.
Settlement Price Basic Asset & its price Cash Resolved Put/Call Option Finish Date
Binary Options are Normally Found in Two Formats Either cash or nothing binary options where trade is done on fixed amount i.e. if an option expires 'in the money' then option holder will get fixed cash amount on which particular trade was entered on, if 'out of the money' then zero cash. Or asset or nothing binary options where trade is done benefit value i.e. if an option expires 'in the money' then option holder will get amount identical to the market value of an underlying on which particular trade was entered on, if out of the money then zero value.