Become An AuthorDo you have a true knowledge about a particular topic & a strong passion for writing? Apply to become a BinaryOptionWiki.com author!
Binary Options Wiki
Tagsanyoption Binary Option Platform Binary Options Binary Options Brokers binary options tips Binary Options Trading Binary Options Trading Platform Binary Options Trading Strategies Binary Options Trading Tips Binary Stock Options Binäre Optionen BullOption Call Option Comerciar en Opciones Binarias Comercio en Opciones comercio en opciones binarias de forex Commodities Commodities Options Commodities Options Trading Devisenhandel Digital Options EZTrader Fixed Return Options Forex Handel mit binären Optionen Index Options Index Options Trading Indices Mercados Asiáticos One Touch Opciones Binarias de Forex opciones de retorno fijo Opciones de valores binarias Opciones Digitales Opción Put OptionBit Optionsgeschäfte/-handel Put Option Retornos Elevados Reversal Strategy Stocks trade binary options TraderXP Trading Binary Commodity Options trading binary index options
Index Options Archive
Posted on August 16, 2010 | No CommentsA binary option is when a buyer enters into a contract to purchase an underlying asset at a fixed price at a pre-determined time in the future.
Posted on June 23, 2010 | No CommentsIndex options are those whose underlying asset is not a single stock of a company, but an index comprising of many stocks. When an investor chooses to purchase index options, he wishes to diversify and gain exposure to a wider section of the market than he would do with a single stock option. To obtain this same level of exposure with individual share would be costly and complicated. When investing in index options, a buyer gains leverage since he can control more shares in an option that he could do if he bought the shares outright. It is possible to receive large percentage gains from relatively small changes in the underlying index as it is the direction of the price change that is important rather than its magnitude.