Binary Options | Binary Options Tools | Binaryoptions.com

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Binary Options Binary Options Pricing and Risk
Analysis
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What is Binary Options

• Binary options are a simple way to trade price
  fluctuations in multiple global markets, but a
  trader needs to understand the risks and rewards
  of these often-misunderstood instruments. Binary
  options are different from traditional options.
• Binary options are estimates of underlying assets
  performance during a given time frame. To
  understand the beauty of binary options trading.
• A binary option is a financial option in which
  the payoff is either some fixed monetary amount
  or nothing at all.
• A Binary Option is simply whether a specific
  traded asset will go up or down in a very small
  period of time.

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Binary Options Instruments

• The majority of binary option instruments
  analysed and discussed will consist of
  combinations of binary options. Binary option
  instruments (or for that matter conventional
  options instruments) consist of outright calls
  and puts, or combinations of both. The possible
  combinations double in number when the outright
  calls and puts are divided into a further two
  categories of options, European and American. The
  kaleidoscope of potential instruments is further
  expanded when barrier options, such as Knock-Outs
  and Knock-Ins, additionally contribute to the
  list. Variable strikes, expiries, barriers etc.
  create a limitless array of potential
  instruments, and then to cap it all, one can
  combine binary options with conventional options
  just to make it really interesting!
• N.B. The term instrument is often
  interchangeable with strategy. On this site an
  instrument refers to, for example, a binary call
  option, a binary put option, a tunnel option, a
  double no touch, etc.. Technical analysis and the
  like is referred to on this site as strategy.

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Binary Options Greek

• Binary option Greeks are the letters of the Greek
  alphabet that are used to represent the
  sensitivity, generally of the options price, to a
  change in one of the inputs.
• The pricing of options is one thing but once a
  position has been opened options risk analysis
  needs to be generated, especially so if the
  position is likely to be closed prior to expiry.
• Why Greeks?
• Who cares? But heres a romantic story.
  Aristotle, in his Politics, described how Thales
  of Miletus was able to forecast bumper olive
  harvests and negotiated options contracts with
  the local olive press owners. If the following
  year produced a bumper harvest then Thales
  exercised his options on the olive presses
  alternatively he abandoned the options if the
  harvest was not a bumper.

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Binary Options News

• JAPANESE BINARY OPTION VOLUMES HIT RECORD LOW
• YEN SURGES AS BOJ STALLS PUMP PRIMING
• TECHFINANCIALS RESULTS 2015
• OIL PRICES TEST 50 DOLLARS
• OPTION.FM SCAM BROKER
• AUSSIE TRENDING LOWER
• EZTRADER RESULTS Q1 2016
• JAPANESE BINARY VOLUME HITS RECORD LOW
• JAPANESE VOLUMES FALL AGAIN
• BRITISH COLUMBIA WARNS ABOUT OPTECK

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Contact Binary Options

• Get in Touch with the BinaryOptions.com Team!
• Our team are more than happy to hear feedback
  from our readers. If youd like to contact us
  about an particular article, suggest a new topic
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  contact us below
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