Binary option,trade account amazon,forex trade manager,meta4mat grand rapids mi - Good Point

07.12.2013
A Binary option is a type of option where the payoff is either fixed amount of some asset or nothing at all.
When buying a binary option the potential return it offers is reliable and known before the purchase is made.
Let’s say that a purchase is made of a binary cash-or-nothing call option on XYZ Corp’s stock struck at $100 with a binary payoff of $1000. Since mid-2008 binary options websites called binary option trading platforms have been offering a simplified version of exchange-traded binary options.
In 2007, the Options Clearing Corporation proposed a rule change to allow binary options, and the Securities and Exchange Commission approved listing cash-or-nothing binary options in 2008.
The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option.


It is estimated that around 90 such platforms have been in operation as of January 2012, offering options on some 125 underlying assets. In May 2008, the American Stock Exchange (Amex) launched exchange-traded European cash-or-nothing binary options, and the Chicago Board Options Exchange (CBOE) followed in June 2008. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. This means that an investor can go long or short on any financial product simply by buying a binary option. Their profit comes from the difference between the options that expire in the money to options that expire out of the money. The standardization of binary options allows them to be exchange-traded with continuous quotations.


They are also called all-or-nothing options, digital options, more commonly met in forex and interest rate markets, and Fixed Return Options (FROs), seen on the American Stock Exchange.
Once you have bought binary options, they cannot be resold before the expiry time is reached.



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