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Home > Binary Options

Binary Options

They are innovative, simplified method for spot trading. Easy derivative, which is won by estimating the value of a specific currency pair in the future (from 1 minute to 90 minutes). When you purchase a binary option is paid premium which is a percentage of the face value - the potential gain. Loss that may occur is the amount of premium paid. When you sell a binary option, the maximum loss represents funds due in the event that the option or may not, barrier option price minus the premium received the seller.

The main characteristics of binary options are premium is a percentage of the nominal value of the option for example: if the value of the option is 100 currency units of the base currency and its price is 20%, it means that the premium will be equal to 20 euros profit from the transaction, the maturity of the option (the time the option expires and trader finalize financial result, depending on his forecast).

The advantages of the binary options are the following:
    - You are able to trade with large and small amounts
    - Pre clear amount of any profit or loss
    - It is not necessary the presence of large or complex data preparation

The types of binary options, which can be operated are High / Low options. Their meaning is to provide the market price of an asset, which is based on the option will be lower or higher than the so-called. "Strike" price or barrier at a specific future point in time.