The different kinds of order for buying and selling stocks -

The different kinds of order for buying and selling stocks

A binary option offers the investor the right and obligation to sell a pair of assets at an established moment. The price of this option has been specified since the start, so the investor only needs to anticipate the movement of price. Those anticipations can be made in different ways, and on different market. In case we are talking about currency pairs, it is just like in Forex: the investor uses Binary Options Buying to anticipate that one currency will grow compared to another. In the case of Forex, the investor makes his profits (or loss) from the exchange course. In the case of binaries, the investor makes his money only if the anticipation is right.

Binary options are more complex than that. If the investor believes in a major crush of JPY because of a tsunami, he can take more chances by placing a binary option on the USD/JPY pair on a short term. In this case, the incomes are significantly bigger, but the risks taken by the investor are also pretty significant.

Binary Options Selling: What is it?

When trading Stocks in Binary Options, the situation is a little different. This time, the investor has to anticipate if one stock will grow more than the other will, but he can also bet on a falling market. Let’s consider the example of an Apple/Microsoft pair. When Apple launches the iPhone 5, its stocks will probably grow in value. Even if the Microsoft stocks will also increase in value, the growth will not be that significant. Betting that the Apple stocks will grow more than the ones of Microsoft means Binary Options Buying

In order for the investor to buy this right on the pair, he has to pay a certain amount of money. If the prediction is right, the investor will get a “prize”, meaning a fixed sum that is established since the start. If the investor loses, he will still get a part of the invested money back, as a consolation “prize”. This way, the investor can stay more in the game. With a 20% chargeback, the investor wins the right to initiate another transaction even if he lost the last five ones.

Why should you trade binary options?

The Binary Options can be used to simplify a series of trading strategies in a medium and average investment period. The Binary Options are available for all kinds of assets, including commodities, goods, metals, stocks, bonds and currencies. It can be considered as a combination of all the other markets. Based on your knowledge that you gained along the years, you can make predictions about the evolution of the field where you are a specialist. IN binary options, you will get a fixed sum that you know since the start, if your prediction is valid at a certain time.

Advantages of binary options

The buyer can work with different financial instruments, and he can win when the markets falls or rises. In any moment, there is a pair that can bring profits, while its mirrored pair will make the investors lose money. Binary Options allow you to be in the winner’s team in the majority of times.

In case you lose, the broker gives you a part of your money back. For example, if your prediction is correct, you will win double or even more. In case you lose, you will get 10-30% of the sum back.

This percentage can be fixed, but it usually depends on the membership. A gold member of the binary options platform receives more, while the beginners will have to climb the ladder of recognition in the binary options world.

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