Binary Options Glossary Part2

binary options trading

Binary Options Trading Platform

There are many different types of Binary Options trading platforms. All web-based, they allow investors to trade binary options on selections of stocks, currency pairs, indices and commodities. Each trading platform competitor offers unique trading benefits to the investor as they each contend to be the most worthwhile trading utility for customers.

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Binary Options Brokers

Binary Options Brokers or binary options trading platforms are online internet based sites whereby investors can trade in binary options from the comfort of their very own computer screen. Each broker is individual to the next, each offering investors a plan with varied attributes.

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Digital Options

A digital option or a binary option is an investing route in which the pay-out of the stock is pre-determined in the contract from the onset of the purchase. Also known as the “all or nothing route”, when an investor purchases a digital option there are only ever 2 possible outcomes; 1. An in-the-money result will earn the investor the fixed return plus their original premium back or 2. An out-of-the-money result will deprive them only of their original premium, and in some cases even compensate them with a 15% return.

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Fixed Return Options

In binary options trading, fixed return options offer many investors a safer way to invest in the stock market than conventional stock investing. The benefit to the investor of making a purchase with a fixed return is the security of knowing exactly what they would earn if the option finished in-the-money.

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Call Option

In binary options trading, a call option is what an investor purchases when they believe that the chosen stock will rise above the current price.

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