Binary options trading is so called because in this type of trading, there can be two outcomes; result. It is an "all or nothing" type fast trade, very simple to understand and easy to manage. If an operator uses good binary options strategies, the chances of making him a good profit is very high.
If a trader believes that the value of a share will increase, it "calls", and if he thinks he will fall, he "met". Let us understand the process of binary trading with an example. Suppose, if a trader believes that the value of a share of Apple Inc. will increase, and end at $ 575 to 1400 hours a day, he "puts" and risk $ 100 for this trade. Now, if the value reaches or crosses the $ 575, he will win $ 100, it is, it will get $ 200 back. But if it falls short of the $ 575 mark, he will lose his money. This is the main concept of the binary business for more info visit this website http://the-binary-matrix-pro-review.com/insured-profits-reviews/
Time limit (1400 hours in the case above) is called the "expiration date" or "Maturity Date". The value that predicts a trader for a stock to rise above ($ 575 in the example above) is called the "exercise price". The biggest advantage of the binary business is that a trader puts the amount at risk, which he can not afford to lose. In the above case, the trader does not lose more than $ 100.
Binary trading with binary options brokers
In most cases, operators running binary of a company's trading and brokers. These companies give traders a payment if the value ends above exercise, ranging from 70% to 90% price. For example, if a binary trading company offers a 70% gain, the merchant will receive $ 170 of his $ 100 investment. But if the trader loses, he receives a small discount (10% in most cases).
Binary trading, the extent to which the shares increase in value does not matter. The merchant will receive the same amount if it closes exactly on the value of strike, or $ 10 above.
Types of binary options trading
There are two types of binary options; asset or nothing binary option and money or nothing binary option. The above case is an example of the binary option trading cash or nothing.
Binary option trading asset or nothing, the merchant receives the value, which is equal to the share price if he wins. But if he loses, he loses the amount he put on risk.