What is a binary option? Nature and History of the binary option

As soon as the term binary trading, binary option, is no stranger to us. So what is a binary option ? Where did the history of binary option trading come from? Through this article, Hyipok.com will gather knowledge about the development of binary options trading before starting to invest in real money!

What is a binary option?

 

A binary option is a type of option that has only two chances of winning or losing based on the amount of money you spend on your option. In fact, this is an extremely simple type of transaction even a novice investor can get started. At the same time, the initial capital required is quite small, only about a few hundred dollars. Let’s explore the development path and history of binary options trading before starting to invest.

History of the binary option

The early days What is a binary option?

The term Binary Options is also only new to small traders. Most people would agree that 1973 was the year that binary options trading came into being. During this time, options were traded by banks and investors with large capital in the non-free market or financial institutions.

At first, binary options trading was quite messy, without a framework. As a result, they are not really as popular as they are today and are only a part of large trading contracts.

What is the attention-getting period for binary options?

It was not until 2008 that binary options really became popular when the US Securities and Exchange Commission (SEC) accepted these options. Around this time, the mortgage crisis plunged America into serious problems. The OCC organization then began to submit option changes that resulted in a framework for the options that made it possible for the options to reach the retail traders.

Immediately after submission, the SEC approved and since then option trading has been found on major exchanges as a separate financial instrument. Binary options quickly became a profitable investment channel for investors.

What is the prevailing period of binary options?

Of course, things won’t stand still. Once the binary option became legal, there was a strong growth. Today, there are many platforms and tools developed to make it easy for investors to trade. Types of online contracts, term term and more. All are changing the way binary options are traded.

Brokers also started to introduce binary options to their clients. The risks as well as the return on trading are also gradually adjusted. Many large brokers offer different policies to make binary options even simpler.

What is a binary option?The power of the Internet

The growth of the internet has also had a big impact on options transactions. Today’s transactions can be done entirely at home via mobile devices. Not only is it easy to trade, but also information about all types of assets is widely available. From there, investors can learn and identify opportunities easily. The 60-second binary option trading type was also borne out by the convenience of the internet.

With the development of the internet, brokers also offer demo trading accounts that allow traders to conduct trial trading. From there, investors can easily conduct investments without any cost. Investors can also check trading strategies as well as find ways to get the best profit before real trading.

What is the future binary option outlook?

Today, binary options are one of the most popular investment sectors in the world and are also fastest growing thanks to their simplicity, fixed loss and profit, and capital requirements. short. Obviously, with these advantages, in the future, binary options will continue to grow.

What do you think the future of binary options will look like? Please share your comments below.

What is the nature of binary option trading?

Binary option trading BO has a completely different method of financial trading from the types of financial investment transactions currently on the market. It can be said that the binary option trading form is quite simple, this type of investment is suitable for new investors entering the international financial markets.

Just by making predictions of an up or down trend of an asset through volatility, the field. If your prediction is correct then congratulations, your account will receive the money. Conversely, if you are wrong, you will lose the entire investment.

Binary option transactions can be illustrated simply through the following problem:

An investor following the follow-up, analysis predicted that the price of an AB share would be higher than $ 27 on April 23, 2020 at 9:30 a.m. That trader will make a decision, whether the stock will be better or vice versa.

And then he made a $ 100 investment bet. In case AB shares trade over $ 27 on the same date and time, the investor will receive the payment according to the previously agreed term. If the payout is 70%, he will be credited $ 70 to his trading account from the binary broker.

In the opposite case, where AB share price is below $ 27, the trader made a false prediction and he would lose his $ 100 investment.

Note: Binary options investing is always very risky. Need to consider carefully before investing.

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