What are the binary options?
Binary options are falsely easy to understand, so they are a popular option for low-skilled traders. The most traded instrument is a low or high yielding option that gives access to stocks, indices, commodities and currencies. candlestick pattern is also useful in this. These options have a clear expiration date, time, and price. If an operator bets correctly on the address and market price at the time of expiration, he will receive a fixed return, regardless of how much the instrument has been moved since the transaction, while a bad bet loses the investment initial.
The binary options operator buys a call when it is bullish on certain securities, indices, commodities or currencies, or when it puts them on the market. To make money, the market must be traded above the strike price at the time of expiration. In order to earn money, the market must operate below the exercise price at the time of expiration. The dealer will indicate the exercise price, the maturity date, the payment and the risk when the transaction is completed. For most high-low binary options that are traded outside the United States, the strike price is the current price or the price of the underlying financial product. As a result, the trader wagers when the price on the due date is higher or lower than the current price. (For more information, see What is the history of binary options?)
Binary Options Abroad vs. US UU
Binary options that are not US generally have a fixed payment and a fixed risk and are offered by individual brokers rather than directly in an exchange. These brokers benefit from the difference between what they pay in profitable trades and what they accumulate in the losing trades. While there are exceptions, it is understood that these instruments will be held in an all-or-nothing payment structure until they expire. Foreign intermediaries are not legally allowed to apply for US residents. UU Unless they are registered with an EA regulator. UU Like the SEC or the Commodity Futures Trading Commission (CFTC). anyway use it with candelstick pattern.
The Chicago Board Options Exchange (CBOE) has started listing binary options for US citizens. UU In 2008. The SEC regulates the CBOE, which offers investors better protection than over-the-counter. Chicago-based Nadex also runs a binary options exchange for US citizens subject to CFTC oversight. These options can be traded at any time, ranging from 1 to 100 depending on the actual probability that the position is inside or outside the money. Transparency is always available and the operator can use the profit or loss he sees on his screen before the time is up. They can also occur when the rate fluctuates, taking advantage of the variable risk for the reward scenarios or holding them to maturity and closing the position with the maximum gain or loss documented at the time of registration. Each transaction requires a willing buyer and seller. because the binary options of EE. UU They change through an exchange that generates money through a rate that matches their counterparts.