What is a binary option? Perhaps it is best to define the word 'choice' for the first time. One option is simply a financial contract where we agree to buy or sell any kind of asset at a certain price within a certain period. Options fall into the category of derivatives as a contract of this type has a value without actually holding the underlying asset itself. For example, if you own an option contract Apple or Google, that the contract has a value in itself, even though they do not own shares in the company. The mere fact that a contract to buy or sell shares in the future has a value in itself. Options contracts expire at some point in the future - minutes, hours, weeks, months or even years, depending on the details of the contract. At expiration, an option contract becomes useless. So invest in opportunities to do something with them, buy or sell, at any time before they expire.



A binary option is a highly specialized option contract that can not be sold after purchase. Auto Binary Signals Review of option is just to the buyer until the expiry of a certain profit or loss. The ads describe an advantage of 90% just describe an option agreement whereby a 90% profit (or loss) is generated when the underlying asset performs the way you predicted. For example, say that the Dow Jones Industrial Average opened at 16 501. Do you think it's going to close higher by market close. So you decide to buy a $ 500 call option (the headline rate expectations) with a final day of expiration. The closing day grinds to a close with the Dow from one point to 16,502. Your option contract valued in value by 90%. Therefore appreciate the $ 500 $ 950 If the Dow closes the contract is lost and will spend most of his $ 500. Some brokers losses will give 15% of the losses back. But this kind of choice is binary in nature, meaning that you win or lose at the time of maturity. Some have described this kind of option like throwing money on red or black at a casino. This is a good description. However, most investors would like to believe that the options are much more experienced than the players playing the casinos.

Binary options existed for years as a private over-the-counter deals. These exotic options are first introduced to the public in 2008, when agents began offering online offerings. Today there are dozens of real estate agents who specialize in these exotic options. Most of them are offshore in places like Cyprus and the British Virgin Islands.

His legal binary options? Like most legal matters, the answer is not simple. Most binary options brokers operating in places outside the jurisdiction of securities regulators. Some of them operate under licenses of casino game. Now there is a CySEC (Cyprus Security and Exchange Commission), which attempts to regulate the industry brokers within that jurisdiction. In the United States there are a relatively new runner called Nadex (Change Derived from North America). This company is fully regulated by the Commission on Trade in Goods and Futures, a government agency similar to the US Securities and Exchange Commission States. Binary option investment is so new that the only time to see how the legislation goes well will actually take. It is certainly fair to say that the legal trend is towards a fully regulated companies investment opportunities exotic option to eager customers in any jurisdiction.

Before seeing the positive side of the binary options let's take a look at the downside. Exotic investment option is not the traditional investment. Some say it is very similar to gambling. I like / red black roulette wheel analogy. When buying a binary option contract will be won or lost at some point in time, depending on the time of maturity of the transaction. Many brokers now promoting 60 seconds options contracts. An honest assessment would call that an investment contract / hybrid bets. In fact, one could argue that investing on Wall Street is nothing more than a scheme of elaborate game.

Unlike traditional range of options, each contract controls a certain number of shares, no impact with binary options. This type of option can not exercise the options. Therefore you have no right to the underlying assets. The option is only used to generate income for the owner.

No liquidity binary options. There is no market due not sell these contracts. After you bought the contract in duration. Some brokers are beginning to experiment with liquidity by offering to find either repurchase of a portion of the contract under certain conditions or to buyers willing to take on current contracts. Will be interesting to see how the industry in the area of ​​post-market like.

Another disadvantage of binary options are going to lose. To really make money in the long run you need an expert investor with a big win to loss ratio. Because if you lose with these options, you lose big, more than 90%. Some brokers are returning from 5% to 15% of the losses. This is probably just a marketing ploy to get you to stay with them. But depending on your account size and could help scale the business with another business.

Unfortunately, the main financial press has little to say about the field of binary contracts. Dr. Jon Najarian, a host of the CNBC television program "fast money" called binary "training wheels" to participate in the traditional options. Najarian says that binary options have a great appeal to "individual investors, funds and institutions with a high risk, who have an opinion one way or another in the future price movements way." An article entitled "Do not play Binary Options" she appeared in Forbes magazine in 2010. Gordon Pope, author, spent two pages to convince readers to stay away from the binary options. Close the item by stating that "If people want to play, that's your choice. But let's not confuse that with the investment. Binary options are a crapshoot, plain and simple. "It is unfortunate that the Pope puts binary options in a negative light. He does not mention that almost all types of investments are crap shoot.

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Now let's discuss some of the advantages of binary options trading. First, these options are an excellent and easy way to gain exposure to different markets - equities, commodities, currencies and the like. Binary options really make it possible for anyone to trade the markets. Some brokers will even open accounts with $ 100 and lets you experience $ 10 deals. Again, this paves the way for almost anyone to participate.

Trading binary options is a great way to test various trading strategies without risking large amounts of money. This account can be opened option in minutes and requires no long questionnaires, and cumbersome approval as an account of conventional options. Most brokers accept credit cards as well as your preferred payment method online. Your bank transfers are also available. Because most of these companies are offshore options, open an account on one of these sites is an easy way to make funds offshore.

The most obvious benefit of investing in binary options is the huge growth potential. Where else can you get a return of + 80% in a short period of time? Therefore, to satisfy binary options to the hype? The answer to that question depends on how they are used and how successful investor binary option in particular. Of course, the underlying market conditions play an important role in the question of whether a particular binary option contract is profitable or not. The conclusion is that binary options a very profitable vehicle for investing in short-term benefits can be.

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