What's make binary options so popular?
In the last 2 years binary options trading has become very popular financial instrument, many financial investors has realized that binary options can be great way to turn their knowledge and understanding in the financial markets in to bg profit. If you don't see yourself as part of this trend, this article may help you understand what binary options are and why they become so popular.
Binary options also called digital options, these types of options promise holders a fixed cash payment, usually when it comes to binary options the payoff is very high (70% and in some cases even 75% profit on every trade). The payoff amount is built into the terms of the options; the binary option holder gets his payoff only if the option expires in the money range.
When it's come to binary option, the investor has 2 types of options he can choose to invest his money on:
1. Binary Call Option – also called binary digital call option is a trade where the holder of this option predicts that the price of an assent will rise between the time of the option trade and its expiry date. Binary call option holder will get his payoff only if the expiration price was higher than its strike price.
2. Binary Put Option - A binary PUT option also call digital PUT option, is a trade where the investor predicts that the expiration price will be lower than its strike price.
Having only 2 main types of options, makes binary options investments very simple, in case you are predicting the price of an asset will go down within the period of time of trading time until it's expiration date, than you should choose to invest your money in put option, in case you are predicting the price of the asset will go up by during that period than the investor should invest his money in binary call option.
Binary options payout depend on the it's expiration rate, the binary option owner gets the payoff only if the option expirees "in the money" that's mean that his prediction upon the asset behavior was correct, if the investor prediction was wrong, that's mean that the option has expired "out of the money" in case expiration price value is equal to the strike price that's means the option expired in the money.
Therefore the binary traders has to invest their money on put option or call option according to his prediction upon the asset behavior during the time between the trading time and the expiration time. That's make digital options investments very simple, with only 2 types of options to choose from and only 3 outcomes possible for every type of option.
But being simple isn't enough to make binary options as popular as it is, for my option what's makes binary options so popular is the incredibly high payoffs, every option expires within the money range (that's mean correct prediction upon the asset behavior) is giving it's owner a nice payoff of 70% - 75% (That's depends on binary option platform you are trading with). Another important advantage of trading in binary options is the short period of the investment that can be from few minutes to 1 hour to one trading day, defiantly short for the huge payoff that can achieved on trading binary options.
Binary options also called digital options, these types of options promise holders a fixed cash payment, usually when it comes to binary options the payoff is very high (70% and in some cases even 75% profit on every trade). The payoff amount is built into the terms of the options; the binary option holder gets his payoff only if the option expires in the money range.
When it's come to binary option, the investor has 2 types of options he can choose to invest his money on:
1. Binary Call Option – also called binary digital call option is a trade where the holder of this option predicts that the price of an assent will rise between the time of the option trade and its expiry date. Binary call option holder will get his payoff only if the expiration price was higher than its strike price.
2. Binary Put Option - A binary PUT option also call digital PUT option, is a trade where the investor predicts that the expiration price will be lower than its strike price.
Having only 2 main types of options, makes binary options investments very simple, in case you are predicting the price of an asset will go down within the period of time of trading time until it's expiration date, than you should choose to invest your money in put option, in case you are predicting the price of the asset will go up by during that period than the investor should invest his money in binary call option.
Binary options payout depend on the it's expiration rate, the binary option owner gets the payoff only if the option expirees "in the money" that's mean that his prediction upon the asset behavior was correct, if the investor prediction was wrong, that's mean that the option has expired "out of the money" in case expiration price value is equal to the strike price that's means the option expired in the money.
Therefore the binary traders has to invest their money on put option or call option according to his prediction upon the asset behavior during the time between the trading time and the expiration time. That's make digital options investments very simple, with only 2 types of options to choose from and only 3 outcomes possible for every type of option.
But being simple isn't enough to make binary options as popular as it is, for my option what's makes binary options so popular is the incredibly high payoffs, every option expires within the money range (that's mean correct prediction upon the asset behavior) is giving it's owner a nice payoff of 70% - 75% (That's depends on binary option platform you are trading with). Another important advantage of trading in binary options is the short period of the investment that can be from few minutes to 1 hour to one trading day, defiantly short for the huge payoff that can achieved on trading binary options.
