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 Binary Options for Newbies
Issued on May 20 2011 par Strategies-options.com
Binary Options put in Layman's Terms
Binary Options are the easiest financial product to understand. They are pure bets.
I - Options by nature Options are bets. No matter the complexity with which they are built, they remain bets, alike bets on a Tennis match for example. A stake is needed like every bet, and this stake is either lost if the bet is lost, or paid back with a bonus if the bet is won. Binary Options are bets. II - The binary feature The payoff of a binary option can only take one of the two possible states : → Either it's a success → Or it's a failure There is no other possible choice. The same way, a Tennis match is either a success for a player, or a defeat. III - A maturity needed As far as the bet remains on, an expiry is almost always claimed to decide which one is the winner of the bet. IV - Graph A binary call struck at 100  A binary put struck at 100  Forex Binary Options Next : Binairy Option : A First Attempt Previous : Stability Warrants Other Derivatives - INDEX Other Derivatives - CHAPTER I Other Derivatives - CHAPTER II Other Derivatives - CHAPTER III Other Derivatives - CHAPTER IV Strategies-options.com |
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