Wow, how easy a yield between 65 to 71% can be achieved! Where a buyer, must be a seller. Binary Options do not grow on trees. Where a winner wins 71%, because either someone has lost 71%, or there are many small losers! There be at least one loser. If I have to permanently, be the winner, who is permanently assigned to the losers? So, where does this come from high profits? Do they exist?
What are Binary Options?
An option referred in the industry have a right to buy a certain thing later at an agreed price or sell. A binary option. A derivative financial instrument is derived from the options and counts to exotic options. With binary options, only two scenarios occur. If a predefined event, the buyer will receive a fixed amount paid. Otherwise, the option expires worthless. The rules are thus quite simple. All or nothing! I have to predict, may if an event occurs. Nothing is easier, if you look at the videos on YouTube to look at the allegations and believes in it. Nevertheless, more on that later.
Development of options for binary options
Options are a very complex entity. The effort, which is operated in order to calculate the value of an option, requires unusual mathematical skills. What is in a digital world closer to simplify as options and to reduce the value of an option on two amounts – all or nothing? When the value of an option no longer varies between 0 and infinity, then the assessment is much easier.
Binary Options abstraction one-step further and move away from its underlying value. Binary options are very young financial product and they are available only from a few years. I think the term option in this case is not quite accurate, because the buyer acquires no rights to buy something later at a specified price or to sell. He receives only a fixed amount when an event occurs.
Thus, binary options are pure speculation or betting. Interest in the underlying the option value is not in binary options. It is just about whether to get a certain amount or not. Let us leave this sideshow before we enter it correctly. Binary options are pure bets on price movements.