Blog.resi.co.id– Binary Options (BO) is a type of trading strategy that is popular in the United States. Trading with BO plans is currently quite popular in Europe and almost everywhere in the world.
But since 2008, the regulatory body of the Securities and Exchange Commission (SEC) has only granted licenses to a few BO brokers in the United States. But what exactly are binary options?
Investors need not worry about the meaning of Binary Options because this type of investment is actually quite simple.
Before you go in and speculate with BO, you should realize that there are only two opportunities each time you trade, as the name of this type of trading implies.
You have the choice of getting as much profit as you have pre-set, or you will receive nothing.
Investing in a predetermined fund does not mean buying an asset, be it stocks, commodities, forex or stock price indexes.
When deciding which funds to bet, you should also decide whether you want to include a “Call” option or a “Put” option.
If the asset price is higher than the target price, one Call option will also expire “in the money”. This means that the price of the asset rises between the time you invest and the time it expires. From the time you invest, the time span can be an hour, a day, or a week.
Put options, on the other hand, will also expire “in the money” if the asset price is already below the target price. This means that the price of the asset falls between the time you invest and the time it matures. The meaning of expired “in the money” is that you will get paid or make a profit.
Expected returns range from 65 to 81 percent, and this is something you should be aware of before investing.
However, in this case, the investor will receive nothing if the price of the asset actually runs out when it expires “out of the money”.
Select Expiration Date.
BO investors can set the expiration date to be one hour, one day, one week, or one month. The expiration date will be determined by your market approach and analysis, as well as the trading strategy you use.
If you are a short term trader who usually uses a 5 minute or 15 minute time frame, you will also prefer a limit with an expiration time of 1 hour.
However, if you are a medium or long term trader, you will also prefer the limit when it expires in one day (daily).
With combined trading analysis, you can open a Call position if you believe the price will go up, or a Put position if you believe the price will go down.
Choose a Broker That Offers Binary Options
Not all brokers offer trading tools via BO. Some brokers that offer this service have different playing conditions.
Below is a brief description of some of the brokers that offer BO trading tools.
Trading with this BO plan can be done in the stock market, especially binary options stocks, as well as the forex binary options market and other markets. next
The final word
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