A binary option is a form of exotic financial option for a theoretical form of asset pricing as to determining whether the pay-off is either in a fixed monetary account or nothing at all. Binary options depend exclusively on? yes? or ? no? proposition. If a consumer believes an underlying asset will sell above the strike price, the trader buys the binary option and if the consumer believes the asset may sell below the strike price the trader shall sell the asset.
Although, apart from traditional options where a trader has the right and no obligations to buy or sell actual property, the binary option provides no rights to the trader. It also makes his wait as he cannot exercise the option before the expiry date.
There are two types of Binary option:
1) Cash or nothing binary option
2) Asset or nothing binary option
Cash or nothing binary option
Cash or nothing binary option also known as digital or binary options is a kind of option that undergoes trade in the fields of currencies, commodities or OTC securities. If an underlying asset in the form of the stock exceeds a determined amount (strike price), it pays out a fixed amount if a condition is met without any partial or multiple payments or else no amount is paid out. As they are traded on unregulated platforms they can be subjected to fraudulent activities. Thus since investors who wish to trade outrage-in in platforms regulated by the Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC) for their protection.
This kind of binary option exclusively relies on chance as to whether the traders pay or not. In a realistic since this is determined by the deeper, they move into the money the bigger will be the pay-out as they intend more to trade and invest rather than to bet on luck.
Asset or nothing binary option
Asset or nothing Binary option is also known as digital options provides a fixed pay-off if below the strike place and nothing if above the strike price. Asset or nothing Binary option, unlike other options, does pay the difference between the strike price and market price of the asset. These kinds of options are used for trades outside the United States. In this option, no underlying asset is sold or bought.
Binary options position in India and Top10 opzionibinarie :
Unlike forex trading restricted by Securities and Exchange Board of India(SEBI), there are no legal restrictions imposed on Indian trading binaries but due to lack of local brokerages, many consumers have resorted to trading with offshore brokers.
There are different types of binary options in India which includes :
Boundary Binary option : This kind of option where the trader gets the opportunity to speculate above or below the strike price of the asset as to whether such an asset's price will reach a certain price or not ie he had to determine whether the price will be above or below the boundary.
Asset trades : They provide a fixed pay-off if below the strike place and nothing if above the strike price.
Currency pair Trade : Currency pair trade is the trade of a Currency's value against another currency. In India, it is legal to trade currencies through the approved channels such as NSE,BSE,MCX-SX for the current trading instruments such as USD/INR,JPY/INR, GBP/INR, EUR/INR
Here is the list of top10-opzionibinarie or binary options of 2019 :
1) Palladium Market
2) Coffee Market
3) Crude oil
4) Brent oil
5) Natural Gas
6) Cryptocurrency trades
7) Cornmarket
8) Wheat market
9) Sugar markets
10) Copper markets
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