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Condition and Strike Price – Every binary option has a condition which must be met at a specific price level known as the strike price. At Nadex the condition is phrased as greater than (>) the strike price. For example the name of a binary option contract in gold might begin: Gold > (market, condition, and strike price).
Assume the futures contracts on the Standard & Poor's 500 Index (S&P 500) is trading at 2,. An investor is bullish and feels that the economic data being released at 8:30 am will push the futures contracts above 2,060 by the close of the current trading day. The binary call options on the S&P 500 Index futures contracts stipulate that the investor would receive $100 if the futures close above 2,060, but nothing if it closes below. The investor purchases one binary call option for $50. Therefore, if the futures close above 2,060, the investor would have a profit of $50, or $100 - $50.
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Binary options are “all-or-nothing” in design. You either win or lose. There is no middle ground. Binary means 1 or 2. One or the other.
Mr. Jones enters in an online binary trading where he purchases a cash-or-nothing binary call option on Orange Company for $200 with a final pay-off of $2,000. The call option implies that the value of the asset was above $200 at the end of the agreed investment period.
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Binary Industry Interview With the binary options industry in a key stage of it’s development, we have sought the opinions of some fellow professionals in the binary sector – to see what they think of the current state of the industry, and what they might like, and expect, to see in the coming months and […]
Binary Option Robot has been copied several times and even by products using the exact same name but the real one is the French one. The French company that created Binary Option Robot owns Copyrights in USA and in EU. So just take care and don’t be scam by other auto trading products using the same name.