0 Binary Options

Binary Options, also called digital options, are a type of financial instrument by which it acquires the right to collect a certain amount of money if the investor was right to choose whether a particular option or raised their price or low price.

Binary Options are traded assets, which can be currencies (dollar, euro), shares of companies (Coca Cola, Apple) and even raw materials or commodities (oil, gold).

They are called binary because, as in the language of computers, there are only two possible options, all or nothing, or already in the language of binary options: "Call" or "Put".

The reason why binary options are attractive to investors is that they leave high returns of about 70 percent, and its operation is limited to predict whether a particular asset will rise or fall in value against the reference price in a while determined or agreed. Assets can be stocks of a product or service in the stock market, a currency pair (eg EUR / USD, EUR / USD), among others. There is no currency compraracciones simply must bet if these will rise or fall based on news about the company issuing the shares, or the tendency of a currency, in the above example, relating to foreign exchange.

Call is the name given to the act of buying a binary option, judging that in the maturity of the option, increase its value, relative to the reference value at the instant when the option was purchased.

Put It refers to the act of buying a binary option, guessing that this decrease in value, relative to the reference value it had at the time of purchase.

Importantly, do not buy the stock (or currency) itself, but "bet" for the increase or decrease of the underlying asset, ie stock or currency.

For example, we conjecture that Google shares will increase within one hour. We invested $ 100 to "Call" in a binary option, because we hold that the stock will increase in value. No matter the value increase, but the fact that "bet" that these will rise in value. If at the end when our prediction was fulfilled, win $ 70, and receive $ 170 (the 100 invested over our gain). Conversely, if not what we expected, we will lose our premium of $ 100. Some companies offer to return up to 15% of the amount invested in the event of loss of the option.