Comment Synopsis A binary option is a type of derivative option where a trader makes a bet on the price movement of an underlying asset in near future for a fixed amount.
Binary options are also called as digital options, all or nothing options, one touch options, fixed return options and bet options. This works on the same lines like European style option.
These options have a fixed payout for a trader, which has a maximum time limit considering the difference between the purchase date what is rs in binary options exercise date of an option. If trader sees bullish trend then binary call option if bearish then binary put option.
This is how to trade Binary Options Full Time!
Or asset or nothing binary options where trade is done asset value i. Now, he buys one lot of one month call option at strike price of Rswhich is expiring on Nov Now on the expiry date i.
So the trader will receive Rs Had the stock closed below Rsthe option holder would have received no money. Binary options contracts are offered with different short duration time periods, so traders have broad range to choose from seconds to months depending on their requirement In some countries, binary options are traded on regulated exchanges, but generally they are termed risky around the world because they are unregulated and are traded through fraudulent ways through the medium of brokers over the internet.
All major exchanges alert investors against such systems.