Important Points Every Investor Should Know About the Binary Option

Important Points Every Investor Should Know About the Binary Option

Binary options is a kind of trading done which is way different from mutual funds, stocks and even bonds. But you need not be much confused as understand it is effortless and simple.

When it comes to binary option  rather than simply investing in a particular firm or company such as Facebook, Google, etc., the person would simply be betting on fluctuations of price of the company, or options that are available before him. People who bet with caution and the right way, have a great chance of winning back an enormous amount of money. However, people who make the wrong decision would end up losing their whole investment.

Binary option investors have the ability to understand whether the investment that they have made would either rise or descend. Moreover, they get the ability to set a time span for the stock so that it reaches up to a certain limit. This particular time range can be short or even high. It could even be for a minute or for an entire week.

Kinds of Binary Options

You can start to trade with binary options at an international level. At the same time if you want as an investor can also invest at both international as well as a national level. Internationally they are referred to as “exotic options”, usually in the United States.

There is a wide array of Binary options available. A few of them have been mentioned below:

  • Digital Options

One of the simplest ways is to use the digital way. They are usually known as the call or put option. This is simply because the investor has to bet only on if the options will rise of fall below the current trading cost. Even here the time span could only be for as less as fifteen minutes. If you want you can even hold it for one single day.

  • Touch Options

Under this category there are three sub divisions. They are the touch, no-touch and the option of double touch to select from.

Under the touch option, the investor gets to bet on the value of an option and whether it would rise up to or more than a particular amount mentioned.

In the case of no-touch option, the investor bets whether the value of the investment will fall below a certain level. While in the case of the double touch option, the investor would have to place two different bets as well as on two different positions too.

Category Finance