Binary options are distinguished by the fact that at the end of the term of an option occurs when purchasing predetermined set of gain or loss. Since there are only two possibilities, one is often called a digital or binary “payment profile”: ONE or ZERO, gain or loss.
Usually, the premiums are paid at the expiration of the option in the money between 65% and 85%. The exact amount depends on both the underlying asset, the maturity and the particular broker. In the event of a loss, so the end of the option from-the-money will be withheld for most providers of the amount invested. Some brokers also provide loss protection, which pays up to 15% of the amount invested.What are the times when it is binary options trading? The term of a binary option is a key factor when it comes to whether an option in the-money or out-of-money runs out. The decision to call or put goes hand in hand with the decision over the term.
Both factors are the basis for the purchase of a binary option. With binary options, the payout rates are usually the same for all maturities. It does not matter if the running time of an hour or more weeks: The payment at maturity is equal to, if the option expires in the money. This “digital payment profile”, the risk profile of the investment can be clearly “slimmer” than make variable payouts.
Delivery times for binary options range from a few hours up to several months. With the right experience and knowledge can be generated in less than an hour very quickly a very high yield.
What underlying securities are traded? Binary options are offered for a variety of underlying assets. Advanced traders will benefit from a wide range of underlying for options, since you can rely on a variety of current trends and developments. Nevertheless, even for beginners a wide range of different options is helpful as it in your particular field of knowledge can search for specific matching options out.
It is important not to lose focus. There are mainly four segments, which are operated by brokers / providers binary options: corporate stocks, commodities, indices and exchange rates.
How many different segments and underlying are offered in the individual segments in each case is different from broker to broker. Decide on an overall view of the broker platform, whether the offered portfolio including the general conditions sufficient to your needs.