Know All About Binary Options Trading In India

What is Binary Option?

Binary options are estimation of performance of underlying assets during a fixed time frame. This is a type of option where the payoff can only take two possible outcomes, either some predefined units of some asset or some monetary amount, or nothing at all. The two popular types of binary options are-
 

  • The asset or nothing binary option.
  • The cash or nothing binary option.


In binary option all you have to do is predict the possible outcome and then choose either “Call” or “Put”.
 
Call Option: One possibility is that the price of the investment or asset is going to rise. This type of investment possibility is termed “Call” option.

Put Option: Another possibility is expressed when to estimate that the price of an asset will fall, it is then termed as “Put” option.

Selecting a particular is the first step of your investment strategy. For example if you have interest in gold prices you may choose to make a binary investment in gold. It is advisable to invest in those markets with which you are familiar with this increase the chances of making the correct prediction.

The assets that are traded as Binary options:

 

  • Several commodities can be traded as binary options, like silver, gold, coffee, oil and many more.
  • Binary trading can be done with indices like BSE, NSE, SENSEX and many others.
  • Forex or foreign exchange is another area where binary trading can be done. You can make your prediction regarding all the major currencies like GBP, USD, EUR, etc.
  • Binary trading can also be done on stocks of giant companies.

 
In this type of trade you either gain or lose there is no other alternative. Thus binary options have a total value potential.
 
Investing in binary options involves a fair amount of risk and novice investors might find it hard to predict the fluctuations in price of the asset. But investing in binary options is very profitable and yields a substantial amount of higher return rate. Investing in binary options has become a new trend and there are several binary option trading brokers in India. Easy withdrawal and deposit options are also provided by the trade brokers to facilitate trading. Choosing a proper trading broker is very important. There are many brokers who provide a large trading platform and educate the beginners in binary option trading.

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