Options are what it is
All of the options ► Options are what it is
What is binary options
Binary options have been legalized in the Chicago Stock Exchange in the United States in 2008, and quickly became one of the most popular ways to trade on the financial market in the world. Binary options are significantly different from other forms of traffic, because here you do not acquire any assets, ie, do not get their owners, and you're just trying to predict the direction of the asset.
Binary options traders in the lexicon have a variety of names. They are called digital, two-fold, "all or nothing". At the same time, with all the diversity of the tool name, its essence boils down to one thing - this is the most simple tool for trading with the possibility of getting a considerable profit with clearly defined losses in a very short period of time.
Binary Options - a type of options, the basic principle of which is the definition of a trader direction of price movement of an asset (currency pairs, commodities, equities of companies). What is binary options in simple words - a financial instrument. You get a fixed income if the price movement option will match your prediction, however, you lose the entire bet if the price movement will not match your prediction. In fact, the success of the transaction to the binary options is only accurate forecasts, for example, above / below, where options and got its name "Binary" (binary = presented in the form of two elements).
All you need to do the trader is to determine whether to fall or to rise the price of the option selected for a certain period. As to the time of expiry of the binary option (expiration), then there is several options: from 60 seconds to a calendar year.
Binary options - at the present moment in time, are one of the most popular tools for stock exchange trading. At its core - it's kind of exchange contracts, which are essential conditions for a drop or increase in a financial asset with a pre-agreed profit or loss. At the same time, often, no matter how many items pass the cost of the asset. It is important that it went in the direction you predicted.
All that is needed from us is to understand - whether the price will go up or down will be sent over a "lifetime" deal. A binary option is bought for a period:.... 30 seconds, 1 minute, 5 minutes, 10 minutes, 15 minutes, a few hours or a few months, which further simplifies trade. Since we have two inviolable constants known in advance and profit from a loss a predetermined time, during which we will get them.
At the disposal of every trader is:
binary options exchange - it quotes of currency pairs, from the market majors, ending with the most exotic (EURUSD - EUR / USD, NZDUSD - New Zealand dollar / US dollar, USDCHF The - US dollar / Swiss franc, the USDJPY - the US dollar / Japanese yen, CHFSGD - Swiss Franc / Singapore dollar, AUDJPY - Australian dollar / Japanese yen and even more than 50 pairs of the most popular currencies in the world);
binary options stock market (shares) - shares of the world's most popular companies - Google, Apple, Microsoft, Macdonald's, Coca-Cola, IBM, BMW, Boeing and more than 80 shares.
Financial assets Mercantile Exchange - gold, silver, platinum, copper, soybeans, beans, crude oil, natural gas and more than 70 highly liquid products;
Indices - averaged data of entire sectors of the economy of individual countries: Dow Jones, NASDAQ, S & P500, CAC 40 and more than 50 popular tools.
It is believed that the operation with binary options - one of the most uncomplicated ways to trade on the market, because it involves trading within the short-term prospects, and operates with high profits. It is not surprising that such operations are widely popular among traders worldwide.
• The winning option - the option assuming a profit;
• Losing an option, in turn, implies a loss;
• lose-lose option - a situation in which the term of the contract is closed at the same price of an asset for which was bought. Such cases involve full refund of the contract;
• The price in the performance of the transaction - this is the price at which an asset is acquired at the time of the purchase contract;
• The price at expiration - this is the price at which to sell the asset at the time of the expiration of the estimated life of the options, in turn, determines whether or not an option winning, losing or lose-lose.
Binary Options opinion of specialists and experts
Experienced representatives acclaimed industry market on the internet more than once spoke about various aspects of binary options and about the nature of the system as a whole.
If considered in more detail the concept of binary options, the open spaces on the web you can find thousands of conflicting opinions, among which there are reviews of these authorities the scope of the market. By and large, all contradictions can be reduced to two main items.
Is trading binary options fraud, can not be answered unequivocally for one simple reason. As in any other case where the generated huge amounts of money, there is a place in good faith companies and fraudsters. That is why the subject is not suspected hard very sphere of binary options, and brokers who may be potentially unfair. For the beginning trader the most important task is to choose the right broker, the expediency of work which does not cause doubts.
Experts recommend when choosing a broker to pay attention to:
• Low initial deposit;
• Minimum transaction;
• Demo account.
• The functionality of the trading platform
• Honesty and openness broker
Here expert opinion is divided into two: the first - before you make a deposit, you need to figure out all the nuances of the withdrawal of money from the deposit in advance and pass the verification account. It is important that the input means produced in the same way that the planned output. And the data in the payment system must match the data specified at registration with a broker. Ridiculous mistake can rob you of money.
There is also a view that the binary options in general should not be used as a tool for operating activities in the financial market, especially as it concerns short-term transactions (turbo option - as they are called). Binary options is rather an additional tool, and more suited to hedge positions on forex prisoners, using binary options, in some cases it is convenient to insure pre-existing, or are planning medium / long-term positions in the stock or currency markets.
How to trade options
To begin with, that considered the question of how to trade binary options can be on both sides, so the answer to this question can be different -
The first side - is the technical features of transactions including the basic functions of trading platforms and the types of options contracts listed by your broker.
Ie, both from a technical point of view to conclude the transaction. How to choose the asset, how to set the expiration period of the transaction as choose the amount of investment (option value), how to use the built-in indicators, a contract to select up / down or touch / non-touch, etc.
The second side consists of more than the entrance of the rules and terms of expiration of options contracts, in other words, tactics, strategies, and psychological components.
That is, in simple words, how to make so that transactions in the total amount brought more profit than loss.
If the issue with the first point is solved in a couple of hours or even 10-15 min., Then the question of the second paragraph may take months or even years.
It plays a major role not how much you have studied literature, watched video lessons, been listening to others' advice and not very experienced traders, it definitely needs to be done to get the basic knowledge and good advice - but, nevertheless, the main role is played by your own experience. Only after working for some time to the market, you can understand what you did not explain any one trader. Every trader knows the market in its own way, yes, it can show you on what instruments it enters into transactions at any time, under any circumstances, but even doing all strictly a blueprint foreign successful action you will never be able to understand the market on their own, and sooner or later for you will all end in complete failure.
The answer to the question: open training demo account and exercise alone. Try different strategies, even loss-making, so you will understand why and what makes a profit, why lose the deposit, and then try to build their own tactics on the basis of the experience gained, remove and minimize of the tactics that ate your deposit and do not give to get a plus . For starters learn how to trade to zero, and only then can think about leaving a plus.
Once you learn how to trade, plus a demo account, you can open a real account with a minimum rate, but make no mistake, there you will find a deep razocherovanie.
Turning on the real you will find even more difficult test.
Most traders lose their first deposit only because of improper psychological preparation. Trading for real money - not the same thing, that trading on a demo account. Fear, greed, euphoria - all this is waiting for each trader, who will dare to enter the market with real money.
Trader and Binary Options
Trader - a person who is involved in trading in the financial market and profit from this process. Accordingly, the option trader - a participant who uses binary options trading as an instrument.
It is worth noting that the trader operates, as well as all entrepreneurs at your own risk, taking into account their own theoretical calculations and shape analysis of the market situation. At the same time the profitability of trade is almost entirely dependent on its activity level of analytical systems analysis and trading volumes of capital in the operational management.
Simply put, the trader's main task is to analyze the situation in the market and the conclusion of binary options contracts based on it.
What are the options
The most common two types of options: American and European.
American option can be redeemed on any day before the expiration of the option. That is, for such an option is given by the period during which the buyer can execute this option.
A European option can only be redeemed at a specified date (expiration date, due date, maturity date).
The options are binary options or classical.
Let's talk about each of them talk in order.
1. Binary options are the financial contract profitability or losses which are in advance prior before the conclusion of the contract. The volume of income received (about 70-85 percent) does not depend on the number of items to overcome the price of the asset on the date of the contract. In order to get a profit on the contract you need to the asset is moved to at least one point in that direction, given that the private trader, and during the execution period of the contract was trading in the range of transactions.
Those. if you specify that after 1 hour the price will be higher than the current, and the price will be the expiration of the term longer than 1 hour before, then you will get the profit (fixed), which was set at the time of the transaction, even if the price will be just 1 point. Typically, profit depends on the traded asset and the volatility (75% - 89%). If the price will be lower, even 1 point - you will lose the entire value of the option.
Difference in profitability and the losses (11% - 25%) due to the removal of a broker fee for the transaction.
2. Classic option is still the name ka "vanilla option."
This tool is a special exchange financial contract that gives the opportunity to buy / sell trading asset at a price that is formed on the options market during the period of the end of the bargain.
The principle of the contract is the same as that of the binary, but it is important to say that the income is not specified in advance, and profitability depends entirely on the size of the price level at which ends a bargain.
Types of options
Binary Options Up / Down
Binary Options Up / Down today are popular with traders. You could even say that in spite of the development of the market and the emergence of other types of contracts, it is this type of binary options take the lion's share in the market.
Different brokers, there are different names for such contracts. Previously, they have also been known as options call put. But, regardless of how such contracts are called, their essence remains the same.
Binary Options One Touch
Among all the types of binary options today occupies a special place the option One touch. This is due to the fact that these options are quite complex, but, however, their yield is much higher than on other contracts. For this reason, today they are attracting a growing number of traders.
An interesting feature of one-touch binary option is that during the time of the option, the price should at least once to touch a given level of the broker. On the one hand, it seems that it's just enough. After a week a lot can happen. On the other hand, certainly has a lot to happen, but things can not happen.
Options One touch also known as OneTouch options
Touch boundary may be either one-way (only the top, bottom only) and two sides (the top or bottom contact boundary).
Binary option Border
The border - is another quite interesting type of binary option that is found in many brokers today.
What is a binary option is the boundary?
What is the essence of the boundary option, which is also found under the name of the range, or Range? The purpose of this contract is to determine whether the price of the underlying asset at the time of expiration within a designated range of a broker or go beyond its limits. In simple words - will cost the channel, or the left channel. The boundaries of the channel defined by the broker, depending on the term of expiration, the higher the chosen option period, the greater the divergence of the channel boundaries.
Since 2009, RTS launched trading on the futures market Futures-style options on the RTS index. The new contract gradually rastorgovyvaetsya and all participants of the market actively try to work with an unusual instrument in the near future line-style options on futures will be expanded...