What is a binary option?
A binary option is a financialproduct where the parties involved in the transaction are assigned oneof two outcomes based on whether the option expires In the money. Binary options depend on the outcome of a ” yes or no ” proposition. “binary” Traders receive a payout if the binary option expires in the money and incur a loss if it expires out of the money.
It’s a financial instrument with simple yes or no Option. You decide whether a market is likely to be above a certain price, at a certain time. If you think it will be, you buy. If you think it won’t be, you sell.
Key Takeaways
- Binary options set a fixed payout and loss amount.Traders receive a payout if the binary option expires in the money and incur a loss if it expires out of the money.Binary options don’t allow traders to take a position in the underlying security. Most binary options trading occurs outside the United States.
Binary options Example.
Binary options have an expiry date and/or time. At the time of expiry, the price of the underlying asset must be on the correct side of the strike price (based on the trade taken) for the trader to make a profit.
Think Your capital is $1000 and you are gonna invest $100 per a trade. and Protential return is 80%
If you win the trade your Profit will be $80
If you loss it you will loss $100 and you have $900 remaining in your account. You loss what you invest.
Is Binary Option a gambling.?
If you trade without any knowledge on binary option It’s will be agambling cause It has higher risk of losing what you invest. Newbie
traders have loss a larger amount of money the reason is they did not try to find the knowledge. We are here to help you in all the way. Just be alert with Weteach24.com
Broker Types
There are two type of binary option brokers. Those are Running expire Brokers and Fixed expire Brokers.
Running Expire Brokers
In this brokers type the expire is running and you need predict
for the time they provide. you cannot choose extract expire you need to
trade, Expire starts from 1 min to day end. Read MoreFixed Expire BrokersIn this type you can trade the expire you want.just need to
type the expire you want. If you open the trade at 8.02 for 10 minutes,
the trade will expire at 08.12 Read More
Recommended Brokers
- Pocket Option – Best For USA & Europe Traders
- Olymp Trade – Best For Traders From India – Read full article
- IQoption – Best Trading Platform
- ExpertOption – Best For Social Trading
- Binary.com – Best For Beginners
Click here to read the full article about recommended brokers..
Where to Start
Create a demo account and try some trades using weteach24 telegram channel, It’s totaly free
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