Binary files are also known as options that have absolutely nothing, digital options, or Fixed Return Options (FRO), each name emphasizing the 0-1 nature of the options. This is because there are two possible outcomes for a binary option, both of which are understood by the investor before the option is purchased.
Result of selection:
1 – At the end of the day, if Microsoft is really higher than the moment the choice is made, we will pay the investor $ 17.10.
0 – If the shares are lower, we will return $ 1.50 to the investor
This means that the investor knows that he will receive either $ 17.10 or $ 1.50 when the contract is purchased. These values will undoubtedly be higher, the greater the investment. An investment of $ 1,000 with a 71% payout will result in a $ 1,710 payout or a $ 150 payback.
What is unique about binary options trading?
There are three major differences between binary options and regular (known as vanilla) options:
These differences have several consequences:
1 Short-term multi-use means that investors can take immediate advantage of fixed profitability options and are more flexible in option investments.
2 In vanilla options, an investor pays per contract (i.e. point). The investor will then make a profit or lose an amount depending on the number of points difference between the completion level and the strike price. Unlike binary options where two outcomes are predefined
3 The investor must keep his choice until the expiration date. Therefore, he should take more care when buying his options because he cannot sell them after he has bought them
Binary options trading is a new and exciting way to invest in financial markets. They are simpler and more flexible than traditional options, but as with all investments, advance planning is an important part of success.
Binary options are an exciting new type of investment. Instead of buying the asset itself, investors can predict where an asset will move. When a binary option is purchased on our platform, a contract is created that gives the buyer (here known as the investor) the right to buy. The seller is a major asset to us, for a certain period of time, at a certain price.