Binary Options trade is perfect for the solid investors, who are seeking for a relatively safe and rational investment. Binary Options is a simple investment, therefore attractive for both experienced and non-experienced investors.
It require no prior or educational knowledge. When investing with Binary Options one knows there are two possible outcomes before he invests. One will either make a predetermined amount of money, or will make nothing. Moreover, the investor can control the risk factor.
There are numerous ways to perform a Binary Options trade. The first step for an investor is to be aware of the different styles of Binary Options available to him. The most common ones are: Cash-or-nothing, Asset-or-nothing, One-Touch, No-Touch, Double-One-Touch and Double No-Touch.
Cash-or-nothing. This option is the most common term of Binary Options. This type of trade enables investors to guess the direction of movement (above or below) of a financial good. The above or below options give the investor a strike price in which he will speculate as to whether the market will be above or below that level (strike price) or a specific time. The investor estimates whether the price of a specific good will rise or fall, without paying a significant premium.
Asset-or-nothing. This option enables investors to guess the direction of movement (above or below) of an asset. The above or below options give the investor a strike price in which he will speculate as to whether the market will be above or below that level (strike price) at a specific date.
One-touch. These options are path-dependent options in which the existence and payment of the options depend on the movement of the underlying price through their option life. Hence, these Binary Options has a barrier feature, which allows an investor to receive their profits if the market moves to a particular level (touches a specific level).
No-touch. The option of not touching is the opposite options of a touch. Instead of the contract be ended as the asset price reaches a predetermined level during the options lifetime, the option "no touch" is profitable if and when the options expire so that each time the trade did not touch the property's listed price had taken the options price.
Double-One-Touch and Double No-Touch. The Options of a double touch and touch dual are similar to the One-Touch and No-Touch options, but instead of one level to be the determined price, the investor makes a profit if the property touches the two price levels specified in the course of trading of the options until its expiration. The "double no touch" requires that the property will not touch any of the specified price levels at any time before its expiration options trading predefined time to make the prescribed amount.
It is important to note that the stock (goods, foreign currencies, etc., which are the underlying assets) is never been actually bought. In the short run, Binary Options creates an investment portfolio with no significant risk.
More Topics »