In most forms of investment, the investor actually buys an asset and monitor its value. If the investor sells the asset back to the market when its price has gone up, he has made a profit. If he sells it when the price has dropped, he has made a loss. There is the actual movement of the asset here, with its added responsibilities to the investor.
In Options trading, you are predicting the value of the asset for a predetermined time frame. There is not the psychological pressure of actually having the asset with you.
In Binary Options, there are only two investment possibilities you can predict
Call – where you predict the value of the asset will go up
Put – where you predict it will go down.
What are the assets that can be traded as binary options?
Stock indices, Forex (combinations of foreign currencies), Commodities like gold, silver, Stocks
Although they are considered to be the building block for asset pricing and financial derivatives, they are grossly misused and many fraudulent operators have made scams out of them.
They are often known as All-or-nothing options, digital options (when working in foreign exchange or interest rate markets) and FROs or Fixed Return Options on the American Stock Exchange.
The trading of binary options is more unregulated than regulated.
Auto binary trading is when robots place the trade based on software developed from stocks algorithmic trading. Auto trading makes use of electronic platforms where the…