Binary Options World

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In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option.

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The cash-or-nothing binary option pays some fixed amount of cash if the option expires in the money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange).

Binary options are usually European-style options. When buying a binary option the potential return it offers is certain and known before the purchase is made. It can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. Binary Options World

This means that an investor can go long or short on any financial product simply by buying a binary option. Binary Options World is offered against a fixed expiry time which may be e.g. 60 seconds and up to 30 minutes, an hour ahead, or to the close of the trading day. Binary options once bought cannot be resold before the expiry time is reached.

For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp’s stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received. Binary Options World

Binary options contracts have long been available over-the-counter (OTC), i.e. sold directly by the issuer to the buyer. They were generally considered “exotic” instruments and there was no liquid market for trading these instruments between their issuance and expiration.

Binary option trading platforms

They were often seen embedded in more complex option contracts. Since mid-2008 binary options websites called binary option trading platforms have been offering a simplified version of exchange-traded binary options. It is estimated that around 90 such platforms (including white-label products) have been in operation as of January 2012, offering options on some 125 underlying assets.

The platforms offer standardized short-term binary options with a pre-determined profit/loss, that cannot be liquidated (buy or sell to close) before expiry.

If you are not familiar with Binary Options World, you should take into consideration that it’s a simple and often easy method to earn cash trading various assets (like commodities, stocks, indices, or currencies) on the online financial market.

Binary Options World