What Are Binary Options?
Here are a few points relating to binary options:
1. Often, people refer to binary options are unusual or exotic. However, they are very easy to use and trade. With opzioni binarie trading you can have access to indexes, foreign exchange, stocks, and commodities. Thus, these stocks are also known as fixed return options as they have a fixed expiry period or strike price. If you guess correctly in the direction of the market and the value of the instrument at the appropriate expiry time is in step with the strike price, then you will receive a fixed amount of profit without any regard to how much the value of the instrument has moved. However, if you guess wrongly in the direction of the market, you will lose a fixed amount of what you had invested.
2. In this trading system, there are two options, "call" or "put". If you feel that the market price is rising, you choose the "call" option. Here the price of the product must be higher than the strike price at the time of expiry. On the other hand, if you wager that there is a fall in the market price, you will choose the "put" option. In this case the product price must be lower than the strike price at the expiry time. In a binary options trade all the aspects including strike price, risk, payout, and risk are revealed before the trade begins. The only two aspects that may change are payout and risk.
3. Although binary options are the best choice for speculation or hedging they do have certain disadvantages and advantages. Some of the major advantages are known risks and rewards, no commission, customized investment amounts, and numerous strike prices. Consequently, there are also disadvantages such as lesser winning payout, limited regulatory oversight, and no ownership of assets.
Trading with binary options is generally a simple and quick way to make huge profits. All you need to do is ensure that you have adequate knowledge of this type of trading and your investments in order to prevent any loss. In order to do this you need to enhance your knowledge on binary options trading by reading various articles. This will guarantee you good returns