sâmbătă, 7 aprilie 2012

Forex Binary Options


Forex Binary Options

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Binary options provide a simpler and relatively less risky way to trade forex. And since the forex market is the most liquid market in the world, there is active price action essentially around the clock.
At right is an example of above/below one-hour binary options on the EUR/USD foreign currency exchange rate as they would appear on an online trading platform. The options have a 81/0 payout*. They were available starting at 6:00 a.m. (ET) and can be bought at any time up to ten minutes prior to expiration at 7:00 a.m., after which time new options will be available for trading over the subsequent hour. The blue line shows the price history of the EUR/USD exchange rate over the life of the options thus far.
The EUR/USD current price is 1.40885. If the investor anticipates that, at option expiration, the EUR/USD exchange rate will be above the current price (the light green shaded area on the chart), then the investor will click on the green CALL button to invest in the binary call option that locks in the current price. After so doing, the customer need only wait for the option to expire. If the binary call option expiration price is above the customer's locked-in price, then the binary call option will return the maximum payout, in this case, the initial investment plus 81%. If not, then all of the initial investment will be lost.
If, on the other hand, the investor anticipates that, at option expiration, the EUR/USD exchange rate will be below the current price, then the investor will click on the orange PUT button to invest in the binary put option that locks in the current price. After so doing, the customer need only wait for the option to expire. If the binary put option expiration price is below the customer's locked-in price, then the binary put option will return the maximum payout, in this case, the initial investment plus 81%. If not, then all of the initial investment will be lost.


 


Trade Binary Options with No Deposit Bonus (For Beginners) or Best Deposit Bonuses (For Advanced) - Click Here

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