A binary option seems like something that is quite hard to understand. It involves speculation, or investing in certain assets that have the option of two predetermined outcomes, normally within a period of time that has been previously fixed. These options are also known under the names of FROs, or fixed term options, all or nothing options, and digital options. They are binary because there are two outcomes of the option, a 0 option, and a 1 option. A 0 option is when the investment has not paid off, meaning that it was not successful. In this case the buyer gets only 15% of what he or she initially invested. If the option is 1 however, or if it proves to be successful, then the buyer gets a 71% bonus return on what he or she originally invested, meaning that at the end the buyer will have 171% of the original investment.
Binary options UK – no training
In order to trade with these options the buyer does not need any special skills of trading. The binary options UK is among the most inventive kinds of Forex trading. The buyer first needs a trader account that has money, and then he or she needs to choose which assets to invest in. This can be anything from stocks, currencies, indexes or commodities. Then the buyer should choose the time frame, which could be as little as one hour to something like a month. There is also a choice of selecting an expiration time that is custom made for the investment that the buyer selects.
Binary options UK – next step
Now the buyer has to select the direction of the rate. If the buyer thinks that the rate will increase, and then he or she will choose ‘call’, if he or she thinks that it will decrease, he or she will choose ‘put’. The buyer then decides on how much money he or she wants to invest. The buyer then must enter the correct amount of money they have decided on investing. There is always a minimum that a buyer can invest every transaction; however, there is no limit or maximum amount for investing. The buyer can invest all his or her money from the trader account into one binary option if he or she wishes. This however is not recommended.
Binary options UK – profit or refund
The buyer now needs to check whether he or she will make a profit or will take a refund. The buyer looks at the return rates in order to be informed of what he or she will get in the event of one outcome or the other, or how much money the buyer will win if the investment proves successful, or how much they will get in return if the investment fails. Now it is time to buy the option, the buyer clicks on the ‘buy option’ button. Once this button is clicked, there is no turning back. The buyer now needs to wait the time he or she has allotted to the option to see what outcome it will have.