Normal options differ only marginally from binary options. This is clear from the fact that both relate to the development of underlying assets.
However, there is already a major difference in trading: Classical options are a plus500 normal exchange business and can therefore only be traded on the stock exchange (9:00 to 20:00). On the other hand, binary options are over-the-counter (OTC), which simply means that they are traded outside the stock market and thus a purchase and sale of these products is possible between 8:00 and 22:00 /P>
The investor, also known as a trader, also speculates on the performance of a certain underlying asset. However, one does not specify a threshold value at which the option is sold, but a so-called “stoploss”. This limit is constantly adjusted in the course of trading, Copy Trading depending on how the price changes. Thus, the profit, as well as the risk etoro is great. Depending on the scenario, the investor may lose more than the capital invested.
The management of the stop-gap limits requires the investor to monitor and analyze the course at all times; otherwise, a loss will quickly occur, irrespective of whether his initial forecast was correct. The broker thus tries to react in real time to the market.
This entails a lot of time, especially with very volatile courses. IQ Option It is estimated that about 80 percent of the traders of this stop-gap management are not good enough.
The complexity of the product is therefore high, and strategies are often used to limit the loss and to generate the lowest possible profits. For beginners, these products, which have become very complicated, are therefore not to be recommended.
The first step in the eye, which is at the same Social Trading time advantageous to classic options, is that profits and potential losses are clearly defined in advance. Digital options have therefore also been given the nickname FROs (from Fixed Return Options).
Furthermore, the time required for trading with these financial derivatives is significantly smaller. It is irrelevant to the investor what the price is doing during the term, he does not need to react to it either: the interest rate is only the price at the time of expiration.
If the forecast of the investor enters, he receives the previously determined profit. In the event of a negative betting, however, he loses his bet, so the risk is manageable and controllable.
In addition to this intrinsic simplicity of the product, there are other simplifying factors that are based on the their more info possible types of trade. Here you can either bet on a certain tendency of the price (call or put options). On the other hand, certain limit values and their under or overruns can also be used as an option for an option. Whether the market value is in a predefined value range can also be a criterion after binary options can be traded.
Even 24option beginners can understand these types of trade in turn and enter the business after a short time. The labor intensity is low, and therefore even experienced brokers are bouncing trading with binary options. In addition, high profits can be achieved at a calculable risk.
The intersection of classical and binary options is, however, the achievement of profits. In doing so, one should act only with a thorough knowledge of the market, euphoric anyoption or even panic action leads with probability almost certainly to loss to short or