What is Forex Binary Option ?

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william22
10
william22  

I am stock market trader since last 3 yrs. but I came across one trading platform while searching on internet that is forex binary option what is forex binary option? please share some knowledge. I am still searching on internet about forex binary option.

Shawn Michal
396
Shawn Michal  

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes.

Source: Binary option - Wikipedia, the free encyclopedia

Paul75
1319
Paul75  

Binary Options trading is the new kid on the block with the block being the world’s financial trading arenas. Binary Options give traders who do not consider themselves experts on the most complex financial instruments, or who do not have the means to invest thousands of dollars in their first trade, a feasible option.

william22
10
william22  
Shawnmichal:
In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. Source: Binary option - Wikipedia, the free encyclopedia

thanks for the useful information.

FaizanKhan
80
FaizanKhan  

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-style options. For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received. In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function. Due to the difficulty in hedging binary options that are ATM near expiry, they are much less traded than vanilla options, but can be approximated with vertical spreads.

Source: Binary option - Wikipedia

david100
122
david100  

Binary options are a form of "exotic options" that were created to produce a fixed return and loss on a binary outcome. It started legitimate. However, the way it is now exploited by online binary scams, they have degenerated into nothing more than a quick 5 to 15mins bet on a binary outcome with payouts lower than potential win. So in the long run, you lose... do the math.

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