Binary option what is it? Earnings on binary options
Table of contents
Today, probably, every person has already heard the word “binary option”, but few people understand what is it all the same? We have prepared for you a video clip and a short article on binary options.
The concept of a binary option
Let's see what a binary option is.
Binary option - This is one of the varieties of the exchange contract, which is used to make a profit on the price movements of assets (currencies, stocks, goods) in world financial markets. The buyer at the time of the acquisition of a binary option makes a prediction how to change the price of its asset. This financial instrument has a fixed value, known in advance by the expiration of the contract and the amount of potential profit.
Benefits of a binary option
What are the advantages of this asset?
First, the trader did not initially need a great knowledge in the field of investment. It is enough to change the value of the price. Secondly, the investor, during the change of value, knows and understands all possible risks of losing money and making a profit. At the same time, he receives the greatest benefit. And finally, in the event of a threat, the investor will suffer minimal losses, and in a better situation, he will receive a good profit.
If you understand that binary options are a high-risk financial instrument, then you should understand the advantages of binary options and should be even more interested in them.
Option - it is a derivative (a derivative financial instrument based on that underlying asset. It can be oil, Bitcoin, the dollar / euro or ruble exchange rate, or one of hundreds of other assets).
Option contract - This is a form of transaction, which implies that one of the parties has the right (but not the obligation) to perform a certain action.
In the case of an option, sell (if the option is "Put") or buy (if the option "Kol") lot after a certain time at a fixed price. And here everything is extremely simple. If you buy an option, then you assign the time of its execution, as well as the direction of price movement. Since there are only two directions of movement (up and down), the option is called binary.
Instead of a conclusion
In the beginning, we wrote to you about the benefits of binary options, but these are not all the advantages of this tool:
- Trading 24 / 7;
- Intuitive operation;
- High chance to get income;
- Easy to start for a newbie;
- Ability to start with minimal investment.
We hope that the video and article was useful for you and you have learned something new about binary options.
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