Have the Best Understanding of the Binary Options Now

In the binary options manual, you will be able to deepen and learn this exciting investment instrument. Unlike traditional options, the big advantage of the binary option is that the return or payment is predetermined in advance, so you will know from the start your potential earnings and risks. Know the best binary options brokers on the market in our directory of brokers specializing in binary options.

The Financial Derivatives Market

In the financial world, we find various investment instruments that we call derivatives. Financial derivatives or derivative instruments are defined as all financial products whose value is based on the price of another asset. That is, financial derivatives are instruments whose price or value is not directly determined but depend on the price of another asset we call active.

Binary Options: What are Binary Options?

Binary options are also known as digital options, fixed return options or all-or-nothing options or FRO (Fixed Return Options). In this type of investment, the investor acquires the right to receive a fixed quantity if, on the due date, the condition is fulfilled that the option rises or falls in relation to the price of the latter at the time of the realization of the purchase.

History of Binary Options

Equity options have traded in US markets for many years. Since the 1950s and 1960s, options were generally traded on NYSE-listed shares and on 100-share lots with typical maturities of two and three months.

Binary Options Structures

Like normal options, binary options vary in value depending on the movement of the underlying asset to which they refer. If we estimate that the value of a particular commodity, for example, will increase throughout the day or week we will purchase call options? If, on the contrary, we think that the value of this underlying asset will go down during this period, we will buy binary options of typ.

Types of Binary Options

Binary options can be categorized according to separate variables. Depending on when you can liquidate. Depending on how the asset should behave so that the option generates profits, according to the condition that must be given for the option to generate profits.

Basic Terminology for Binary Options Trading

The binary options trade offers investors a fast and easy route for online trading. Although general investment terms are used by many, there are some specific terminologies in the field of binary options that must be understood to invest in this type of option. Need to know more? Visit http://fraudbroker.com/blog/strategy/channel-alligator-trading/ for that.

Parameters to negotiate with binary options

When trading binary options, we must always keep in mind that they are no more than a forecast or conjecture about the future outcome of the value of a particular asset. That is to say, we make a forecast on the value of a certain asset and depending on the outcome of this forecast we will be able to make a profit or a loss, which is our fixed return.