Trading Options Class

When we speak about binary options, we often evoke the notion of All or Nothing. To understand the meaning of this term, it is essential to be concerned in the practical operation of the binary options.

Indeed, when you trade by means of the binary options, it is a very big gamble or risk. Plainly you subscribe an option to certain price which depends on the level of your investment. Then, you have to speculate on the rise or on the other hand on the decline of the price of the asset on which you place this option. Finally, you choose duration in your option which can go from some minutes to a couple of days at most. The purpose of the game’s here that in the time and time of closure of your binary option, the price of the asset has a value above the price at the time of the subscription if you speculated in the increase and the inferior in the opposite case, or, if you speculated in the decline. You can win until 85 per cent of your stake if your prediction is exact according to this profit. Naturally, the opposite entrain an equivalent loss.

Continuing On…

A call option gives the right to purchase a stock at a certain price (strike price) at some time in the future, something you do rationally if the strike price you pay when exercising the option is lower than the prevailing market price of the stock. A put option gives the entitlement to sell a stock at the strike price, something you do rationally, if this time the dominant market of the stock is lower than the strike price of the put. The premium you spend when buying the call (or put) is the value of having the option to buy (or sell) the stock at the strike price should the market price of the stock reach the level at which time it is rational to do so. If, when it comes to the time of making your choice of whether to exercise or not, the market price is to a standard which means it isn’t rational to exercise, then you simply decide not to buy (or sell) at the strike price. The options you own will expire worthless and all you lose from this procedure is the premium you paid originally for the option.

By analyzing this simple fact, we understand fast that on one hand, thanks to the binary options and by placing only on hazard, you have no more and nothing less 50% of luck to win. In other words with some knowledge and a low market analysis, your chances of gains are much larger than if you trade in a more classic way.

INSURERS make money by playing a non-lethal version of Russian roulette. They accept risk on a large number of transactions. On the overwhelming majority, the risk does not materialise and they pocket an easy profit. On the others, the risk becomes reality and – as with last weekend’s storms – the resulting loss for the insurer can be very costly indeed. Individuals can also play this form of Russian roulette. It is called going ‘short’ of options on shares or stock …


Besides, what we evoked above brings us to make another report. Indeed, when we win with an option binary, the profitability is very important, until 85 percent of the invested money.

Another advantage of the trading of binary options is that thanks to them, you can trade on the majority of the stock and financial markets. Indeed, you’re not confined to the same category of asset, but can speculate on numerous values as the currencies, the shares, the indications or still the raw materials, even organize trades on several assets at the same time.

Another advantage of the trading of binary options is that thanks to them, you can trade on the majority of the stock and financial markets. Indeed, you’re not confined to the same category of asset, but can speculate on numerous values as the currencies, the shares, the indications or still the raw materials, even organize trades on several assets at the same time.