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					Binary options don't function the same way as
      standard options, even if they take the
identical titles for instance "calls" or "puts". On
  the, their pricing and profit components are
  far less complicated basically because time
decay is not really an issue. On the downside,
 they are normally very short term speculative
    positions based on where the underlying
   financial instrumnent will be in an intraday
timeframe. If it is wherever you predicted, you
  enjoy a set payout; if it isn't, you lose most,
          but not all of your investment.

US Binary Option Broker
The word "binary" means "two" so this class of options is appropriately
named There will only be two possible outcomes - they pay you they
don't From time to time they can be called all-or-nothing options, digital
options or fixed-return-options (in the USA) In a manner of speaking you
could think of it like betting on a horse race The thing is, there are only
two horses with this race - the first is called "up" the other "down" In the
event you pick the right one, you win; if not, you lose about 90 percent of
your outlay Binary options normally have a good return on risk
percentage - often way above 50 percent and this ultimately suggests
that providing you get more trades right than wrong, your bottom line will
be a net gain Binary options can also be used for short term range
 Rather than it being your aim for the price to be below or above a
specific price level, you're now speculating that the price of the underlying
will trade within a selected range during an agreed time period These are
called "hit or miss options" The trader picks the price range and the
timeframe and the broker responds by creating a price If the price of the
underlying trades within the price range until expiration of the short
timeframe specified, you've got a "hit" and get paid Binary Options
Pricing Like standard options, the pricing of binary options includes the
element of implied volatility which means you'll want to evaluate the price
offered to make certain there is value in the binary call or put options you
intend to purchase The important thing is to have a strategy which
includes a suitable return on risk for successful trades that is adequate to
cover the likely number of losses For instance, a minimum 70 percent
profit on each successful trade and 10 percent loss on failed trades
means that you will want 6 trades out of 10 correct in order to make an
overall profit
 If you accept less than 70 percent ROI then the mandatory number of
profitable trades increases Binary options are never exercised so you will
never be stuck with the underlying financial instruments at expiration time
 The result is very straightforward - you either get paid or you don't They
are usually European-style options since they will be only settled in cash
at expiration The payout is either cash-or-nothing or asset-or-nothing In
each case, you receive cash, which is the value of the asset Binary
options can be traded on stock indexes, currency pairs or individual
 Let's consider an example: Assume it's 11am and the EUR/USD
currency pair is trading at 1 3480 You believe that it's going to close at or
above 1 3500 by 2pm today Therefore you buy 10 binary call option
contracts with that strike price, at a cost of $40 per contract = $400 cost
If the EUR/USD is at or above 1 3500 come expiration time, you receive
$100 for each contract
 Below that you receive nothing The expiration time comes and you're in
luck Your profit is $1,000 less the $400 cost of the options, ie $600 You
risked $400 US Binary Option Broker and made $600 which is 150
percent return on investment Well done! The simplicity of binary options
has made them attractive to speculative traders and their launch in July
2008 has opened up yet another way to trade options
US Binary Option Broker

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Description: above 1 3500 by 2pm today Therefore you buy 10 binary call option