Binary Options & United States Market
The Binary option is very simple and easy to trade and is very popular in Europe. They are widely traded in major exchanges of Europe like EUREX. They are traded in United States via Chicago Board of Trade where the binary options are traded on the target fed funds rate.
Primarily to trade the binary options the trader must be the member of the exchange or the other non members or investors must invest their money only through the members of the exchange to execute the trade. They are done on contract basis and the each contracts value is $1000. Trading Binary Options is a trouble-free, fast-moving way to get a place without risking more than the value you pay for the Binary Option.
The United States Commodity Futures Trading Commission (CFTC) manages and controls options exchanges in the United States. The online binary option platform is better than that of the binary options based on exchange.
In options exchange the buyers and sellers all together perform the trade against each other and the options exchange maintain the supply and demand and they facilitates the liquidity whereas in online binary options the platform provides fixed returns through the price movements of the markets going up or down.
Binary Options are generally very easy to trade since they need only a direction of the price movement of the asset, it does not depend upon the magnitude of the underlying asset. Binary Options trade also offers short term duration contracts. In some markets, Binary Options contracts close several times all through the trading day, while others may last for long.
Thereby providing the traders with many investment opportunities and make them flexible and easy as the markets change over time.
In binary option the trader can get the payoff which may be the double the amount of their investment or nothing which depends upon the expiration period. A Binary Option is a type of option where the payoff is all or nothing.
If, at expiration period, the binary options settle in-the-money, the buyer or seller of the trade receives a dollar amount which is pre specified. Likewise, if the binary options settle out-of-the-money, the buyer or seller of the trade will receive nothing from the options. If there is upside, there is a gain and if there is a downside there is a loss and it is almost risky to invest in binary options.
The binary option provides you with full payout if there is a single movement and thus they are preferred more than traditional options.