The basic concept of binary options

Binary options are still considered a relatively new investment opportunity. Introduced a few years ago, enjoys the trade an ever-increasing popularity. The positive trend can be attributed mainly to the simple design and the relatively limited principles. The basic principle of binary options is very simple; three key points play an important role. For each transaction must be determined in advance, which would deal with the underlying prospect. Fundamentally are equities, indices, commodities and currency pairs to choose from.

In addition, always have a certain contract period must be observed. The contract period can vary from one hour to one month, and is highly variable depending on the retailer. At the end of the binary option must be an expectation for the performance of the underlying asset to be made. The purchase options call and put options are available for sale. For each digital option is a bond, contract and forecast component.

The basic concept of a binary option is always based on a bond. The bond is always the first component of each trade. There are four different types of bonds. Shares, indices, commodities and currency pairs are the best-known forms. The investment opportunities are now almost unlimited, but are always in a clear dependence on the broker, not all Forex brokers offer the same investment opportunities.

The traders are willing various markets, the options for action to be increased even further. In addition to the basic concept of the bond is also getting a contract finalized. The agreement is an important primary component, which includes the contract and its expiration date. Lease terms can, as already mentioned, be very different. The contract period may amount to an hour, a day, a week or a month. At various vendors also meticulous contracts, for example over a period of 15 minutes are possible.

To the basic concept is always part of a forecast. The forecast of the evolution of its bond traders can now meet with various tools. Crucially, however the price before the contract expires. A correct prediction can lead to a gain of 70-80%, the income may vary and is primarily depends on the provider.

Comments are closed.