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Showing posts with the label structured way of trading

Binary Options vs Traditional Options

The difference between binary options vs traditional options is in its trade structure. Although there are differences they are also similar in many ways. Underlying assets are traded in both markets and they have a predetermined expiry period or date that is determined before placing a trade.  The different types of assets that are traded in both the markets are also similar with some assets not traded in the binary market. Binary options It is a simple and structured way of trading where traders bet on two possible outcomes in a trade.  The trader may be able to get a fixed return as all trades must go to the expiry period before the outcome is decided. In binary options the traders are obligated to exercise the option when they expire. In this market complex price quotation systems are not there and instead traders may make use of the market price of the underlying asset to evaluate the performance of the trade they had placed.  The basic options include high/low, ran