Guide To Binary Options Trading
Even Though they have been available in some markets for some years, the United States has now just caught
up and introduced binary options to the traders’ portfolio of financial tools. Binary options, or fixed return options as they are known on the American Stock Exchange, have been available in USA since the
middle of 2008, and are EZ to get started.
The binary option is in essence nothing more than a bet on which way the price of a stock, an index, or a foreign currency will move. You can choose up or down and place your bet.
When the option date and time is reached, you will see if you were right or wrong. If you were wrong you still get 5% at EZTRADER, and if you were right you win a fixed amount, perhaps
$100 or $1000 depending on the contract and the initial investment.
Even if you are not familiar with conventional options trading, you can see that binary option trading is much easier to
understand and more straightforward. Unlike comventional options, the exact price at expiration doesn’t matter – either you are “in the money” in which case you get a
set amount, or “out of the money” which means you lose your stake. You know from the moment you place your deal how much you can
Binary options are available on the Chicago Board of Trade and AMEX, and there are several trade brokers available such
as eztrader.com. Many traders have started using binary options to hedge their conventional positions in a trade. Taking a binary option for a fall in the price on a commodity that is
owned means that even if the price does fall, the trader doesn’t have to be out of pocket.
Who Benifits Binary Option Trading?
Binary option trading is such a recent invention in the markets, that many traders do not realize just how they could use it to good effect. For those of you that
don’t know, binary options get their name because the result is “binary”, simply yes or no. The option is either above or below the price of a financial security at the expiration date
and time, and you either get paid or you don’t.
If you have a binary call option and the price at expiration is more than your strike price, then you profit by a set amount, usually $100 or $1000 depending on the market and your initial
investment. If the price is less, you get nothing, unless you trade with www.eztrader.com, in which case you are still left with 5%.
You can also buy a binary put option, which works in the opposite way. Because they are so easy, requiring only a sense of direction of the price, they are
simple to trade and the risk/reward ratio is predetermined when you buy the investment. Thus traders
are turning to binary trading to simplify their choices while giving them the chance of good profits.
For more information visit EZTrader
For Full EZTrader Review Visit http://binaryoptionreview.com
Gain important information in the sphere of forex trading – make sure to study this webpage. The times have come when proper information is really within your reach, use this chance.