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How do Binary Options work?And Benefits of trading Binary Options

Posted by BOOGIE145 on Wednesday, May 15, 2013 Under: 848FINACE

A Binary Option asks a simple yes/no question.

Will the price of gold be above $1625 at 1:30pm? 

If you think yes, you buy the Binary Option. If you think no, you sell.

The price at which you buy/sell is not the actual price of gold, but rather a value between zero and 100.

For example, Gold > 1625 (1:30PM) may be priced at 42.50/48.50. The first figure is the bid price (sell), the second is the offer price (buy).

The bid/offer price fluctuates throughout the day, but always settles at either100 (if the answer is yes) or zero (if the answer is no). Your profit/loss is calculated using the difference between the settlement price (zero or 100) and your opening price (the price you bought or sold at).

In : 848FINACE 


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