Dow Jones

A new form of investment in Germany an option is a contract which entitles the investor (holder), but not obliged, to buy an underlying asset at a specified price within a specified time or for sale. The traded underlyings can currency pairs (for example, USD/GBP), commodities (such as silver, copper), shares (such as Apple, Vodafone) or indexes (such as Dow Jones, NASDAQ). The exercise price is the technical term for the fixed rate at which the base value is purchased. When trading binary options, investors must decide whether the price of the selected base value at the expiration time will strike the exercise price. The decay can occur at the end of the next hour of trading, the next trading day, the next week or the next month.

There are three aspects that play a role in the binary options trading: the selection of the underlying, the selection of the expiry date and the selection of the course direction, who will embark on the underlying. If the investor of view is,. the binary option will adopt the current price until the expiration date, he buys a call option. He is of the opinion that the binary option will undercut the current rate until the maturity date, he buys a put option. The trading binary options yields are known at the conclusion of the contract. Noted the option at expiry in money, the investor receives a profit of 65 – 71% on his investment.

Recorded an option at expiration from the money, the investor receives a refund of 15% of its original investment of Thanks to the controlled risks when trading binary options, this type of investment for many investors is very popular, because the potential gains or losses upon completion of the business are known and can be included in all potential scenarios. With the development of the Internet it is possible to trade binary options now on online platforms. This means that an investor can buy binary options conveniently from home and without a real estate agent. An investor has the platform of Ability to track the performance of underlying assets, as well as to gain an overview of its previous and current assets. In this regard, the online trading binary options is very flexible. The investor (owner) is able, the coming into question for him base values, check the expiration date and projected price changes of the underlying securities, to meet its requirements and knowledge. The only unknown aspect is whether the price of the underlying securities at maturity above or below the strike price is record. (Image: