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Binary Options Research Paper

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What are Binary Options? Binary Options are a type of option that is based only on two results, yes and no. Which explains the word binary, meaning composed of only two variables. Trade futures are on the market, not inside the market. If a certain commodity, stock index, or currency, has reached a certain price at a specific amount of time. Traders do not need to purchase the actual asset or asset alternatives, but rather, binary option contracts. Both rewards and risks are fixed. A Binary Options trade is essentially composed of three elements. Expiry time, strike price, and payout offer. Expiry time The length of time from the moment an option has been made until it closes. Strike price The price the trader was able to enter at, and this …show more content…

Touch option Based on the principles of foreign exchange trading, this option gives an investor payout once the price of the underlying asset reaches or surpasses a predetermined number. High/Low option The most popular type of binary options trading, the investor will predict whether an asset will increase or decrease from a: High bet Predicts a higher price outcome of the option by the time it expires Low bet Predicts a lower price outcome of the option by the time it expires Expiration The time where all bets made during the period are revealed. Successful bets receive profit that corresponds to a fixed percentage of the original bets. Binary options have a faster turnover than other stock options, therefore, the longest duration a period can last is 24 hours, and the shortest at 60 minutes. Every option has stop invest time. When that moment has passed, all bets will not be accepted. This is how most Bitcoin binary options sites regulate stop invest time • One hour options will not accept bets later than 30 minutes • Four hour options no later than 60 minutes • No later than two hours for eight and 24 hour

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