Binary Options Trading

Binary Options also known as Digital Options Trading contracts have long been available over the counter and were considered to be an “exotic” instrument, without any liquid market for trading them.

The History Of Binary Options Trading :

In 2007 the OCC (options clearing corporation) has proposed a rule change to allow Binary Options trading followed by the SEC (Securities and Exchange Commission) which approved listing of such instruments in 2008.

In 2008 AMEX (American stock exchange) has launched European, cash-or-nothing, Binary Options options, and CBOE (Chicago board option exchange) followed with its own launch in June 2008.

Advantges Of Binary Options Trading :

Binary Options Trading simplify option trading around the globe since it only has to possible outcomes..

If the trader believes that the instrument will close above the current price he chooses a “call option”, on the contrary, if he believes that the instrument will close below the current price he chooses a “put option”.

If his predictions are correct he will receive the fixed payout rate as stated on the option itself (it usually varies between 60 to 70 percent). .

Binary Options trading is a form of fixed odds trading, where there are only two possible outcomes (winning or losing), and the maximum possible profit and loss are known in advance.

Binary Options Trading can be placed on the same markets as regular day trading, so regular day trading charts can be used to monitor the status of binary bets.

An example of a binary options trading could be a trade on whether the S&P 500 futures market will close the trading day at a price that is higher than it opened at. If the S&P 500 opened at 1000 and a Long binary  Optionstrade was placed at any time during the trading day, the trade would win if the S&P 500 will close at any price above 1000, such as 1000.5, or even at 1000.01 (even 1 tick higher is sufficient to win the trade).

in this example a small investment of 100$ will become to 170$ in less then 1 hour Only !