What Are Binary Options

Some information about Binary Options!

Binary options are a type of options that pays out a specific amount of money or nothing at all. This differs from other types of securities in the following way. The pay off amounts vary according to different factors, mostly by what a stock or security was at when the market closed for the day. The actual amount that someone will be paid with a Binary Option is actually agreed to at the beginning of the process. The agreed price is made between a person buying or selling the binary option and a broker. To reiterate if there is no pay off, there is a complete loss. In some quarters Binary options have other names like 'all or nothing options' or 'digital options', they all mean the same thing, an agreed amount as the payoff or nothing at all.

The trading of Binary options are done via an online Binary Option Broker. There are several different types of Binary options one can acquire. There are different currencies too, like the pound, the Austrian dollar the US dollar, Japanese Yen and other currencies as well. Binary options can also be traded in specific companies like BMW and Barclays, when doing this shares in the companies are actually traded. Binary options can all be traded in relation to precious metals, like Gold Silver and Wheat and others. Binary options actually means two things or two elements, in this case it's 'call option' or 'put option'. If someone thinks a security will go up in price, they would use a call option. If they were under the impression that the security would go down in price, they would use a put option. There is also a fixed time involved with binary options, a specific period of time, when the binary option can be traded. Click on what are binary options for more source.