Binary Option Alliance

Your Edge To Success

FAQ

Frequently Asked Questionsquestions-and-answers-splat.img

What are binary options?up-or-down-arrows.img
A binary option is a financial investment, based on a limited time contract. This trading contract is established on financial assets in real time using live market data(indexes, stocks, forex, commodities) The contract duration may vary between 30 seconds to several months. Binary options investments have high profitability rates. Take for example, a contract established on the value of GOOGLE for a 1 hour duration, if you were to invest a $1000 call(buy) with a 87% payout, in an hours time, when the contracts expires, you make a $870 profit if the value of GOOGLE goes up. On decreasing, you would loose your investment.

What is a binary option broker?3D-question-mark.img
A binary option broker is a private financial company, A broker allows a customer to invest on the financial markets through their trading platform

Do I need to download software to trade binary options?
There is no need to download any software to trade binary options. Most, if not all brokers use Mobile and Web based Platforms which can be accessed directly from your web browser, making the set-up for investing quick and convenient.


 

Common binary option terms

  • Binary Call Options

-Binary call options gain value when the underlying asset is trading at more than the strike price at expiration.  

  • Binary Put Options

-Binary put options gain value when the underlying security is trading at less than the strike price at expiration. 

  • Payout

-The amount of money earned from a trade. 

  • Strike Price

-The strike price is determined by the price of the underlying asset at the moment at which the option is purchased. 

  • Expiration

-The time and date at which the value of the underlying asset is judged against the strike price to determine payoff. 

  • In the Money

-An option is said to be “in the money” if the option gains value upon expiration. A put option is “in the money” if the price of the underlying security is below the strike price. A call option is “in the money” if the price of the underlying asset is above the strike price. 

  • Out of the money

-An option is said to be “out of the money” if the option loses value upon expiration. A put option is “out of the money” if the price of the underlying security is above the strike price. A call option is “out of the money” if the price of the underlying asset is below the strike price. 

  • At the money

-An option is at-the-money if the strike price of the option equals the market price of the underlying asset. This can also be considered the “break even point” since the option neither gains in or loses value and the payout equals the original amount traded. 


 

 

Feel free to ask any questions, here to help!! newbies don’t be shy, we all start somewhere….raise-your-hand-this-is-a-party.img

4 Comments

  1. Hi there Dean, I am not sure Is a good thread here, but I wanted to ask how can I start and what you recommend for a newbie like me? Once I gave my money to a broker and does end so well. It was when the market broke down. Horrible, I lost a 70% of all my money.. I was long time ago…

    So, how can I start and where?

    Thank you very much for all information you provide here.With your guidance nobody can lose the money here.

    Diego

    • Hey Diego, Its not the best thread but it will do.
      The best place to start would be to educate yourself about trading and how it works.. Have a look at this post titled start to work from home with binary options In the post I cover pretty much everything you need to know about getting started.. Perhaps you would prefer to start off with a signal service.. Neo Signals or Mikes Signals group are some options,, I also provide signals. You can sign up for a the free video course if you like..the sign up should be floating around the top right corner of this page.. let me know if you need anything else.. look forward to seeing you again;)

  2. When you are investing in stock, you are eeipctxng to make a regular return from your money, either from the dividends, or from steady growth in the value of the shares over a long period of time.When you are trading, you are eeipctxng to make money by catching short term price fluctuations.>>>I do know that I need a good capital, but I can handle that.how much capital would I need for this kind of business?

    • To start trading binary options you can start with as little as $100, But I would recommend $200-250 to allow you a bit of breathing space while starting out. Check Out The successful edge if you are looking at getting started on the right foot in this industry. Thanks for showing your interest Lucas;)All the Best!

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