What are binary options?

What are binary options

The market is moving quickly adapting to the needs of people and bringing more and more options to meet them.
The bag is not far behind and expands its outlook to allow more people to make investments to generate additional income to their jobs or to investment model stable employment. It is in this way that these options appear as online investment methods accessible to everyone.
To define what are binary options we refer to the literal meaning, ie, a binary option is one that allows a return of some asset or nothing at all, following this rule we deduce that the investment made will give an expected return or lose investment, it is all or nothing.
When investing in binary options known from purchasing this performance will give operators that offer this type of investment are called brokers and intermediary institutions that regulate investment. Globally there are many such entities who act as brokers in exchange for a commission to draw from the transaction.
When we talk about this issue we must understand that these options are invested in assets, what is done is to choose the financial asset, predict whether the asset price will be above or below the price at the time we buy, choose the according option.
Define the value you are going to invest, put a timeout and wait to see if the option expires in the money, ie with profits, or out the money, ie lost.
Investment options are buy (call) or sell (put) call is picked when it is believed that the asset will be above the original price at the time of the investment, or put when is expected to be lower.
By investing one of the two options is acquired and estimated time of expiration, this time ranges from 60 seconds to 30 minutes or an hour. Upon completion estimated it is revised if the investment was successful.
Understanding what are binary options
The best way to understand any explanation is by example. You are an investor who chose the binary options, the asset that will invest will be the currency market EUR / USD, his estimate is that will be above the current price (call) and decides to invest $ 100 with a timeout 30 minutes.
Over time the active closed above the original price, so you closed in the money, ie profit. The earned value will depend on your broker, some profitability may vary between 60% and 85%.
As an investment option is a very good strategy, however you need to be patient and study very well what are binary options and the various strategies used to achieve gains, with patience and tenacity can achieve great results, it is important to seek guidance judiciously and study everything about this market to make the most.

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