Whats so Special about binary options?

Unlike stocks trading name of profit or loss are continuous function of the difference between the value of stock buying time for the sale, trade binary options market is more like gambling: predictable returns which

can be won if some condition is met. Binary options exist only two possible outcomes: yes or no. If the result is "yes" - the guaranteed return is accepted, if the result is "no", the amount invested is going all or most of it, lost. Like gambling, binary options also dictate the potential yield and price risk taken stakes in accordance with their acquisition, both in terms of the resulting confidence interval and in terms of reasonableness: the result of a rise in the index at least "equivalent" to the result indicating an increase or decrease only, for example.

Common types of binary options

Primary distribution is the issue of American options and European options types. American options can be exercised at any time before the expiration date, while European options can be exercised only on the expiration date.

Another division is based on the type interval and the expected return:

Touching options - Return accepted if the stock index reached a certain value. Even if the stock fell this set up for the exercise, the return is received. These options are expensive, but high yield obtained them.

Since options - bet there is an option to increase or decrease the stock value only. Yield is obtained if the direction of change in the index is in accordance with forecast investor.

Option limits - set two limits if the change in value when the stock is between two boundaries and out of them, the return is received.

Asset or nothing options - with the expiration date, the yield was obtained if the stock indices in which it was supposed to, and if no investor was getting refund 15% of the investment.

Option of an all or nothing - return is known in advance was obtained if the stock indices in which it was supposed to. If the stock did not meet these objectives, the investor loses the full amount invested.

Binary option is applicable for stocks, exchange currencies, or commodity prices like gold or oil.

Binary Options Investment

Binary options also called digital options, are traded primarily on the Internet. The Internet can be traded both put options (call option, an option to buy stock at the time of expiration value on the acquisition value of the option is relevant when the stock value will likely) and put options (a put option). Starting from 2008 to trade binary options (call options only) is also on the American Stock Exchange and the Chicago Stock Exchange options.

Some use investment as a way to hedge binary options trading stocks using a relatively high yield investment required. High investment in a particular stock is to hedge by investing in binary put option for the same stock.