Commonly Asked Question in Binary Options

Commonly Asked Question in Binary Options

Submitted by adil on Fri, 11/30/2012 - 04:11

Binary options are basically the financial instruments that have got some amount of risk attached to them. A person can buy binary options on major indices, currencies, commodities as well as stocks. In this, you can make a prediction on what you think an underlying price of asset will be later in a day or more. You have to predict on whether the price is going to be high or low by the time the option expires. If your prediction stands true, then you will get a payout which will be based on the original investment. In case of incorrect stance, you will lose some part of the initial investment that you had made. Following are some of the most commonly asked question in binary options.

Ownership in the Company:

Unlike shares, binary options do not provide you with any sort of ownership in the company. By purchasing a binary option, you will just get the chance to make money on the movement of the market price of the asset. Once the expiry is through, you will have no linkage to the company in whatsoever way.

Working of Binary Options Trading:

You need to pick an asset. For example, you have picked up silver and you think that market price of sliver will be higher in a day�s time. The initial investment that you made is $50, if the price of silver upon expiry is high by $25 then you will receive $75, in case it�s lower by $25 then you will get just $25.

Where Can You Trade Binary Options:

There are plenty of brokers or brokerage services online on which you can trade binary options. Each of them has got its own advantages and disadvantages. You need to ensure that you trade only through trusted and credible sources.
You will find many brilliant binary options trading strategies and you should definitely read them before you enter into this arena. Also, since it involves risk thus you should ensure that you take only calculated risk.