Options Binaires Forex

Options Binaires Forex

By using our site, you agree to our cookie policy. This article options Binaires Forex co-authored by Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. There are 7 references cited in this article, which can be found at the bottom of the page.

A binary option, sometimes called a digital option, is a type of option in which the trader takes a yes or no position on the price of a stock or other asset, such as ETFs or currencies, and the resulting payoff is all or nothing. Because of this characteristic, binary options can be easier to understand and trade than traditional options. An “option” in the stock market refers to a contract that gives you the right, but not the obligation, to buy or sell a security at a specific price on or before a certain date in the future. If you believe the market is rising, you could purchase a “call,” which gives you the right to purchase the security at a specific price through a future date.

Also called fixed-return options, these have an expiration date and time as well as a predetermined potential return. Binary options can be exercised only on the expiration date. If at expiration the option settles above a certain price, the buyer or seller of the option receives a pre-specified amount of money. Some binary options will pay out if the share price is met during the determined period. Learn how a contract price is determined.