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Binary Options, also known as Digital Options, all-or-nothing options, or Fixed Return Options (FROs), have been available since the middle of 2008, and are simple for any trader - novice or expert, to understand.

The Binary Option  is in essence nothing more than a prediction  on which way the price of a stock, commodity,  index or foreign currency will move by a designated expiration time.  With Binary Options, you never purchases or own the asset – as you’re only predicting the direction that the asset will go.  There are only two possible outcomes, and the price of the asset does not matter.  As far as you’re concerned, all that matters is if your  prediction was correct or incorrect.   

Through the IHoptions platform, you simply:

1.  Choose the asset you want to trade

2.  Click on “Call” if you believe the asset price will rise by the expiry time,
     Or “Put” if you believe that the price will fall.

3.  Wait for outcome.

4.  Collect your profit.

Binary Options in Global Financial Markets

Binary options fall under the umbrella of exotic options but within financial market they are often referred to as digital options. Whilst digital options are very simple to understand and easily traded, the calculations behind the pricing is sophisticated, and for this reason they are considered exotic options.

Digital options are usually traded OTC (over the counter) across all assets in financial markets but more commonly used within the Forex and Interest markets. More recently numerous stock exchanges have produced listed digital options on selected stocks, commonly known as FRO (fixed return options). Today the CBOE offers fixed return options on S&P500 and VIX, also 20 stocks were listed on the AMEX in 2008.

Advantages of Trading Binary Options

Controlled Risk – The percentage reward is known from the onset, as is what you stand to lose.

Simplicity – You only need a sense of direction i.e. ‘Will Google stock price   increase/decrease till expiry?’

-  For a profitable trade to take place there is only the need for price to   close in-the-money and the winning trade will receive the entire payoff, even if was ‘right’   by a single pip.

Hedging opportunities – A safer option to take if a trader has an open position elsewhere in currency, stocks etc. Utilizing a binary option can eliminate a further loss elsewhere.

Punctuality – Binary contracts are being issued around the clock, allowing traders to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities for binary traders.

To start trading Binary Options today, click here to open an Account

IHoptions is the top binary options trading platform, The traders can benefit from our daily market review in how to use the trading tool and profit from the market volatility, trading results depend on real-time expiration prices provided by Reuters. Option expiration time (10 minutes to 24 hours) and your initial investment which may be forfeit if the trade expires out-of-the-money.  ihoptions accepts no responsibility or liability for individual investor trades. IHoptions is a binary options broker which offers an extensive range of binary options including Forex, Stocks, Currencies, Commodities and Indices. IHoptions assets are centered on the US, European and Middle East markets. Compared to regular options trading, the payouts from binary options trading are substantial and consistent with the high end of the market. Traders can garner returns within the range of 55-80% for 'in the money' options and a very reasonable 5-30% for options that expire 'out of the money'. IHoprions offers a variety of partnership programs designed to drive your profits further, to learn more click here.

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