The Forex market or foreign exchange market was created in 2008. The market for binary options stems from it so it is recent, it is possible to access this market through a Broker (Authorized Broker) who employs traders whose business is to make call or put sales on the variation of prices up (call) or down (put). His gain comes from the quality of his prognosis.

As its name suggests the binary option trader has two choices to place a market order chooses: up or down over a period of time it determines. In this category there are other choices such as

  • Digital options: the trader can make a call or put sale of an asset at a price fixed in advance (strike) for a given time and a fixed date. Since the transaction has been executed and cannot be changed, it is also called a “fixed yield option”
  • Binary options are also called “all or nothing” because if the buy or sell order is in the chosen trend there is a gain, otherwise it is a loss.

The odds of a binary option are indexed between 0 and 100. If the transaction chooses, the trade is worth 100. Conversely, it will be worth 0. The broker will indicate a value on the current transaction, if the Trader thinks that the transaction will go in the direction he chooses will buy, otherwise he will sell.

The best way to explain this type of financial transaction is to take an example of the most basic of markets i.e. the option “rise and fall” “call and put”

It should be understood that before making a binary option transaction you know the risk of loss, £ 520 in this example. There is a large number of binary options however the same principle applies to all, you are asked a question and the answer should be good or false. Make a visit to to know more about this.

One touch option

It is a binary option that comes down to determining whether an underlying market will meet or exceed a certain predetermined barrier. If the market exceeds (or equal) this fixed barrier then the price will be worth 100, and if not the trade will be worth 0.

Forex Strategy with Ladder (Scale)

This binary option will be used if we think that the market will end the period decided at a certain level. For example if we think that “Wall Street” will end above 12200 points the purchase will be worth 100 if it is above this amount or 0 if it ends below.

The Target

A binary option with a target is to place an order on a particular market with the objective of ending in a certain price range. For example we bet that “Wall Street” will end up between 20 and 49 points at the end of the day. If this happens you have won otherwise it is lost.

High Low

This type of binary option is to position itself down or up on the market of the day, compared to the market of this option the day before.

The tunnel

This option allows you to position yourself in an underlying market that will end between two levels that will be determined before placing the order. Example we say that the FTSE will trade between +50 and -50 during the open day. If the FTSE reaches one of these two levels on the same day the result will be a loss.

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