Tag Archives: binary options

Keys to Success in Binary Options

Education and being well informed
The binary options are easier than traditional transactions with options, however if you start investing with binary options must first educate yourself about this type of financial instrument. There are different times to invest with binary options so you must know the time in which you invest and the asset you will analyze. You can subscribe to financial newsletters that analyze various assets, take courses, follow the economic calendar closely and follow closely the general trend of the market and what events impact on it. Always be well informed.

Types of Binary Options

1- According to the moment when the liquidation can be carried out
a- European or Expiration
This type of option exists when the predetermined condition is fulfilled or not, only when the chosen term expires and not at any time prior to it.
Example: You buy an option based on the fact that Apple’s stock will rise at the close of the day. If at the end of the day that condition is met you will be creditor to the total of the predetermined sum. Otherwise, your option will be zero.
b- American or Liquidation prior to expiration
This type of binary option is the one that allows its settlement at any time before the expiration term, once the predetermined condition has been fulfilled.
Example: You buy an option based on the criteria that Apple will drop 10 points before 16:00 CET.