Common Misconceptions About Binary Options
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Binary options are contracts where an investor is speculating on one of two outcomes: a payoff or nothing at all.
The deciding factor is whether or not the option is in the money at the expiration date.
You can trade binaries on events or on investments; such as stocks, futures, foreign currency, and exchange-traded funds (ETFs). While the concept is relatively straightforward, there are many misconceptions about binary options, so it is important that traders understand exactly what they are and are not, in order to use them effectively.
Understanding Binary Options!!!
At least on the surface, binary options are structured just like a $100 bet on a football game: You buy the team you like, or you sell the team you don’t like. A binary is just a simple “yes or no” trade. The “yes” trade means you agree with the binary statement for example, that the market will reach a certain level before expiration. The “no” trade means you disagree. The pricing of the binary is between zero and $100.
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