EZTrader provides a simple and effective way to trade and earn profits regardless of their skill level.
Binary options’ trading, through EZTrader, allows users to benefit from a simple approach that can lead to quick returns.
Binary options, also commonly known as digital options, both are based on short-term projections.
They are an attractive alternative to traditional trading, providing traders who have varying levels of
experience with the opportunity to take a view on whether an underlying asset will rise or fall.
Upon expiration, which is typically an hour later, the binary options will pay out a fixed percentage of the
trading value if the traders’ prediction is correct (or “In the money”). This payout is based on the movement not on the
magnitude of increase or decrease of the underlying asset.
In a sense, binary options are contracts that have only two possible outcomes – they win or they lose.
That is the main reason of why they are called binary options. If the underlying stock meets or exceeds its predetermined
threshold or strike price, a fixed amount will be paid.
There are two types of binary options – binary call options and binary put options.
Binary call options gain value when the underlying security is trading at more than the strike price at expiration.
There is no need to set a specific target, it is only important to identify that the underlying asset will increase in price.
If the price of the underlying security goes up and exceeds the strike price of the binary options at expiration, the predetermined amount will be paid out.
Conversely, binary put options gain value when the underlying security is trading at less than the strike price at expiration.
Similar to the call option, the trader only needs to identify that the underlying asset will decrease in price – not identify a specific target.
If the price of the underlying security trades less than the option strike price at expiration, the predetermined amount will be paid.
In binary options trading, the strike price is determined by the price of the underlying security at the time the option is purchased.
When the option expires, the price of the underlying asset is compared to that of the initial strike price. Following this comparison,
it will be determined whether the binary options have gained value ("in the money") or lost value ("out of the money").
An option is “in the money” when it gains value upon expiration. In a similar vein, binary options are “out of the money” when they lose value upon
expiration. Binary options can also be “at the money”, when the strike price of the option equals the market price of the underlying security.
In this instance, the option neither gains nor loses value and the payout equals the original amount traded.
Trading binary options through the simple and effective EZTrader platform will add immense value to your trading strategy.
Whatever your experience level is, EZTrader can benefit you in the form of quick returns through an easy-to-use platform.