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Binary Options 101 - Everything A Beginner Needs To Know!

By Author: jasper avila
Total Articles: 179

Binary options have really become a hot topic these days, and that’s absolutely no surprise to me. The truth is, people make a killing in this market as long as they play their cards right. Although, you may hear people talking about binary options being a good idea, before you get into any form of investment, it’s important that you really understand every aspect of it to properly gauge the risk and reward levels. That being said, today, we’re going to look at the history of Binary Options, their rate of Growth, chat a bit about pros and cons, and top it all off with what I hope will be a great conversation in the comments! So, let’s get started!

What Are Binary Options?

In the world of finance, Binary Options are investments that contain an all or nothing type payoff. Hense the name binary options. As with the mathematical term, binary options have only two possible outcomes, all, or nothing.

There are two main types of binary options. They are asset or nothing, and cash or nothing. Here’s a brief overview of both:

● Asset or Nothing - At the end of the investment term, the investor will be paid the value of the asset the investment was based on. For instance, if that asset is a big chunk of gold, the value of the gold at the time of maturity of the investment would be paid in full.

● Cash or Nothing - Before the investment is made, a predetermined amount of cash is agreed to be paid once the investment matures. Once the investment matures, the investor is paid 100% of that value.

Binary Options Are Also Known As…

● (FROs) Fixed Return Options

● All or Nothing Options

● Digital Options

The History Of Binary Options

Binary options have often been a great addition to investment platforms, software, and services, however, they didn’t really emerge as an industry of their own until 2007. Because binary options were becoming so popular, in 2007, the international stock exchanges were soon to become the permanent home for them as the result of an important OCC rule change that requested such a change. This was first big milestone for the binary options market as a whole.

The next big barrier that came down was the SEC, or the Securities and Exchange Commission.In 2008, sanctioned the market changing ruling. The ruling was that it was now legal for binary options to be quoted on major financial markets!

John Sides is a binary option blogger who writes for sites such Binary options review where you can read his recent anyoption review. Click here - http://www.binaryoptionsreview.com/anyoption-review/

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