Binary Trading And Binary Derivatives Essay

1555 Words Oct 19th, 2016 7 Pages
In this paper, you will learn about binary Trading. I will discuss what is binary trading, and how it 's done. How it differs from regular stock market trading. The technological aspect of it. Then lastly where it 's at now.

Binary Trading is the trading of Binary Options. Binary Options are a type option where the payoff depends on both the price levels of the strike and the underlying asset, like standard options. If you have a Binary Option contract you are saying that the market price of the item you are investing in is higher than the strike price,and the market price does go above the strike price. Then you are “in the money”or “True ”. The buyer of the contract would receive a fixed payout amount per contract. If it does not then you lose the money you paid for the contracts. Now, if you have a Binary contract that says the market price will be below the strike price and it is. The buyer of the contract will receive the fixed amount for the contracts,but if the market price is above, they lose their contract buy in money. Binary Options are a simple yes or no type of answers. It either will go up or go down on a predetermined amount of time.

There are two different settings of Binary Options the ones that are traded in the U.S. and the ones traded out the U.S. The Options outside the U.S. are typically structured differently than binaries available to the U.S. exchanges. The payouts are fixed,and they are not offered by an exchange but rather individual…

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