Binary Options, the new way to trade the forex and stock index

Binary options allow traders to have a simple approach in financial markets without the complexities of traditional trading.
To trade binary options there is no need for increased knowledge of analysis techniques or to develop a trading plan. You simply speculate on the increase or decrease in value of a market in the short term- and if you are correct the money is yours, no matter the size of movement.

As for risk, it is limited to the amount that you invest on your contract option. Thanks to its simplicity, the binary options market is growing fast and has gained popularity among experienced traders and beginners.

The operation of Binary Options

With binary options also called exotic options, trading is simple and has the potential for huge gains. The principle is to bet on an event predefined, the increase or decrease in value relative to the underlying price. If the forecast is correct at the expiration of the contract you can see a return of some 85% of your investment in a few minutes.

Example of binary options trading

Imagine you are trading forex, mainly on the GBP / USD, Your broker sends an option on parity with the current price is 1.6293 the expiry of which
ends in 15 minutes, predict the correct movement and earn up to 85%. At any time during the term of the option you can choose either to build on a rate increase or displayed on a decline. The downward trend in value suggests a further decline in the short term, you will therefore be an option « sale » (Low).
When the contract expires, the GBP / USD 1.6283 appears the decline has taken place however small it may be. You will therefore generate a profit of 85% since you’re « in the currency (in the money).

A wide variety of assets available

Although digital options are aimed mostly at the forex traders, most of Options Brokers offer a huge amount of indexed contracts on stock indices such as CAC40, NASDAQ and Dow Jones. It is also possible to trade options on gold, oil or money, and all raw materials …