Fixed return options

From Binary Options Trading Wiki

Fixed Return Options became available to investors lately offering a unique new form of options trading, one of two results, all or nothing. Other common terms for FRO's are: Binary Options, Digital Options,All-or-nothing-Options,and bungee options

FROs are structured investment product that offer a simplified investing tool to trader begin trading options without the confusing language and calculations typically associated with the options market.

Retrieved from "http://www.tradesmarter.com/wiki/Fixed_return_options"

(C) 2008-2010 StartOptions Ltd. | Terms | Privacy
Binary Options Trading Platform by TradeSmarter. Stock market data provided by Reuters.

Binary options – also known as digital options or fixed return options are sort of a hybrid between traditional options and fixed-return financial instruments. Digital options are simple, and they are ideal for the trader who wants the potential for significant, short-term gains with a strictly limited risk. This means the investor who trade binary options can know immediately and exactly how much a trade will yield or lose. A binary option allows you to form an opinion on whether a specific outcome will or will not occur. They can only have one of two possible outcomes. Unlike a spread bet a digital option does not require margin, no stops and you know the exact maximum risk and maximum profit. Binary Options trading allow you to take a simple “Yes or No” approach ( or Above/Below) on whether an outcome will occur. For example, will the GOOGLE close up on the day at the expiry time? If “Yes,” the Binary option settles "in the money" If “No,” the Binary option settles "out of the money".

Disclaimer
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MARKET PUNTER EXPRESSLY DISCLAIMS ALL WARRANTIES OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, RELATING TO THE SITE, PLATFORM, CONTENT, AND SERVICES, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE OF PERFORMANCE. MARKET PUNTER DISCLAIMS ANY WARRANTIES, EXPRESS OR IMPLIED: (I) REGARDING THE SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND SERVICES; OR (II) THAT THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY ERRORS WILL BE CORRECTED; OR (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY, COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.

Fixed return options

From Binary Options Trading Wiki

Personal tools

Navigation

Search

Toolbox

Help

Community

Company

More Resources