Theoptionsbank is a Binary Option trade site witch allows you to trade on stocks, commodities, currency pairs, or even entire indexes using the best trading systems and a professional support team around the clock making it easy for you to succeed.
What is a binary option?
A Binary Option is a simple investment, simpler than most other kinds of market investments. When investing with binary options you know there are two possible outcomes before you invest. This is why it is called “binary”. You will either make a predetermined amount of money, or you will make nothing.
Initially you invest a predetermined amount of money in an option. It is important to note that you never actually buy the stock, commodity, currency pair, or even entire index, which is the underlying asset. When you place the invested amount, you decide whether you want a “call” option, or a “put” option. A “call” option will expire “in the money” if the underlying asset expires above the strike price. Basically, you are saying that the underlying asset is going to go up between the time of your investment, and the expiration time.
Now, a “put” option is the opposite. You will expire “in the money” if the underlying asset expires below the strike price. Expiring “in the money” means you will be paid. The amount of the payoff is 85% return on your investment. If the underlying asset expires “out of the money” you will receive nothing in most cases.
The simplicity and full knowledge of what will be gained or lost are the key features of the binary option. You know, when going in, how much money you stand to gain, or lose. There is less research involved with trading binary options because one only needs to know what the trend of a particular stock, commodity, index, or currency pair is, in the desired time period. With the proper market research, a binary option is a simple investment where you can receive short term returns much greater than most other types of investments.