However, it is a highly debatable topic as certain traders argue that using a trading strategy instead of blind predicting in gambling.
So, consider this article as a guideline for beginners and hence, we will keep it as simple as possible. Let us start with the binary definition first.
AGuide to Trading Binary Options in the .
Binary options are a popular form of trading. However, it banned in certain locations such as Europe. Also, in some countries, you can 8767 t perform trade using offshore trading brokers.
Our stock indices are sourced from the over-the-counter (OTC) market – sources outside of the centralised exchanges. Please note that due to their OTC nature, the prices of our stock indices may differ from their counterparts on centralised exchanges.
Options can be written on a range of financial assets from Equity, to commodities, Forex, interest rates and even bonds and credit ratings. Options contracts are by no means a new phenomenon in the financial world. They have existed for hundreds of years and first started being offered in ancient Greece as a way for farmers to hedge their olive crops. Since then, they have been used in commodity circles for a number of years.
In the image on the right we have a CALL option. The price of the asset is plotted on the x axis and the Profit / Loss is plotted on the Y axis.
We cover all the basics information with examples. Hopefully, this article will guide you if you want to make money through binary options .
Binary trading is usually meant for short-term trading. As we mentioned before, with binary options, your expiration can be as low as 85 seconds.