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What are binary options. The binary options brokers.

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What are binary options. The binary options brokers.


Introduction in the world of binary options.

Binary options are one of an agreement form, concluding between broker and trader for a certain term. The main subject of the agreement is projected cost of the asset. If this definition sounds strange for you, so, our first subject will really useful in a work process.

Who is a broker?

In the begging let's talk about participants in agreement. If with a trader (in the side of which acts you) everything is more or less clear, their problems will occur with an understanding of broker definition.

So, the broker is a company providing an electronic platform for trading  binary options. Such companies. They are very a lot. One of the most important tasks which turning up in front of trader - to chose among them the most worthy.

Brokers differ from each other by the size of starter deposit, the size of minimum rates set necessary for trading the underlying assets, but the main sign is reliability and decency. On these characteristics, you must pay attention before starting cooperation with a broker.

Besides, we will talk about future lessons about criteria for selecting a brokerage company. In any case, to that question we have to come very responsible. By the way, on our website, you can find the list of the best brokers, and also their detailed reviews about companies.

Basic assets.

The subject of the agreement is a basic asset, rather, it is his value after a certain period of time.
As basic asset can be financial items, currency pairs, stocks, indices. As a rule, brokers offer at least hundreds of assets to trade.

Financial income, timeframe and expiration. 

An agreement with broker enters for on a clearly specified time.

For example, the trader makes a forecast for the price of an ounce of a designated term (timeframe). The meaning of your timeframe can vary from a minute to one year. It depends on from platform capabilities. When the time expires, the contract is closed or, in the language of professionals, its expiration.

If CALL option was bought and the condition was fulfilled, then the income of trader will be 70% of investments (fixed income). The same applies to PUT option (cost reduction to a certain limit).

As you see, the trading process binary options are quite simple. The main problem is determining the right direction of movement for asset value. This moment will be discussed in the following lessons.

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