Binary Options are a relatively new financial product
There is substantial coverage across the web but many seem to take the shape of one stop bucket shops. The level of creative interpretations of binary options can lead to its financial meaning being somewhat diluted.
Yet a binary option acts as a powerful financial product, and can be used to incorporate FX, commodities and event based trading objectives.
By implementing a binary option you can trade on both a positive or negative trading movement enabling you to profit from both positive and negative pricing structures. The ability to suceed from both bullish and bearish markets seems a little too good to be true.
The reason for this capability lies in the fact that when you trade a binary option you do not own the physical stock but instead gain exposure to the underlying markets. There are a wider range of underlying markets available, from gold and commodities right through to the S&P 500 or economic events such as the latest US non farm payrolls.
Like all financial trading tools binary options can result in a risk of loss. However unlike their options trading siblings a binary option can be traded within a strictly limited risk contract.
They can be traded using a fully regulated binary exchange.
By: Author Mick Choice