Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Digital Option – a Fresh Approach to Trading Online

By Kelly Wagenheim Subscribe to RSS | August 3rd 2012 | Views:

An option which pays the fix amount upon termination or nothing, depending whether the set standard or criterion was met, is deemed digital options. They are also referred to as Binary Options or Fixed Return Options (FRO). Binary options make the dream come true for the investors, as they allow them to fulfill their requirement of high earnings through the single bid made on stocks. To make the characterization of Binary Options which even a lay man can understand, it can also be written as,’ the type of trading options that offers you only two outcomes.’ The option will be a ‘Yes’ or ‘No’; a ‘0’ or ‘1’. In the terminology of the trading, it’s that either you gain the returns or losses the investment. This feature of digital option makes it trouble-free to estimate precise figures of gains and losses during trading.

Digital options are like European options because it can be traded only at expiration and is unlike American options. American option is altogether a different ball game, as it can be traded any time and for this reason Binary Options is poles apart from American Options. The reason why most of the investors trust digital option is that they get their money back even when the bid set out to be wrong. When kept at par with forex and traditional trading for matching up, the binary option outfox the former as it is less risky. The reason why the Fixed Return Option outmaneuvers the former is that in it the bids are made on the shift of the market and not on the basis of the volatility of the stock i.e. up and down of the price.

There is a high wave seen in the stock market because of digital options coming in to the picture. It is like a ‘knight in the glowing armor’ for those people who wants to make money at a blink of an eye. It has many advantages that have turned people to stock market. For instances limited risk is associated with your investment; a person can kick off with small investment; no middlemen are involved so the cost cutting is possible in case of commissions, fees or hidden costs; and the most astounding one is that the return s known beforehand. On the flip side of this, it has certain drawbacks also such as potential wining trades will always be less than the potential losses. Despite of this flaw of this option, it cannot be done away with.

For a novice, it is advised to take the core knowledge of the digital option because large investment is blocked in the shares and they can’t go blindly. The gaining information relating to Binary Option will prove to be handy to a person and will turn out to be a fruitful investment. The success ratio in such options tends to be 60% to 70%, and these people normally speculate with their experience and keeping in mind the multiple benefits offered by it.

Kelly Wagenheim - About Author:
Kelly wagenheim is an experienced trader of stocks, currencies, commodities and many more. In the wake of rising popularity of binary or digital options, he offers all kinds of updated market news, strategies and tips related to digital option through his website. Visit the site to expand your trading knowledge.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Investing Articles Subscribe to RSS

Annuity Calculator Helps to Acquire Multiple Quotes of Annuity
Published by Robert Jhonson on March 20th 2012 | Investing
Most of the retired personnel buy different annuity in order to safeguard their winter days of post ...
Make the Difference in Forex and Futures with the Help of Trading News
Published by PitNews Magazine on February 23rd 2012 | Investing
To the outsider, the world of the stock market could look all the same, from stocks and shares to fu...
Does Forex Currency Trading Possess Any Cons?
Published by Amy Peter on December 29th 2011 | Investing
Forex learning is very important for traders, it doesn’t matter they have enough knowledge about h...
New proposals could reduce the cost of declaring yourself bankrupt
Published by James Falla on December 5th 2011 | Investing
The Business minister Edward Davey MP has announced proposals – called Reform of the Process to A...
Beginner Investors and Some Great Tips
Published by MKenneth King on November 28th 2011 | Investing
Investments in stocks and shares have traditionally been among the most rewarding methods of wealth ...
The best Nassau County auto and homeowners insurance
Published by Warner on April 23rd 2012 | Investing
The insurance company of ours provides different types of insurance, such as, Nassau County car insu...
Knowing the Importance of Forex Trading Training
Published by Amy Peter on November 30th 2011 | Investing
This article is all about the importance of forex trading training. Every forex trader should learn ...
Beware of the Pension Release Scams
Published by on July 19th 2012 | Investing
Immediate financial gains might appear to be tempting but you need to think and act intelligently to...
Foreign Investors Gather at Mexico
Published by Royal Curling on February 2nd 2012 | Investing
A lot of foreign investors are turning to the Latin American country of Mexico as the best location ...
How to invest money
Published by Nisha Varma on February 10th 2012 | Investing
Investing your cash into something that could offer you best of returns is always in the minds of in...
Burdened with tax? Claim rebate
Published by Robert William on January 30th 2012 | Investing
Claiming tax rebate is a good opportunity to help with tax. The right amount should be paid and one ...
The Best Ever Tips for Investors and Traders in the Stock Market
Published by Cody on January 10th 2012 | Investing
First, select a set of four or five volatile stocks that are a part of the index and monitor their p...
To learn INVEST THAT MONEY EN QUE INVERTIR EL DINERO we considering several options according to our capital available.
Published by Saundra Macdonald on May 8th 2012 | Investing
It's true to be to validate some very important points to determine INVEST THAT MONEY EN QUE INVERTI...
Another Set of Reasons Why You Need to Plan with an Interest Calculator
Published by Tyler on May 7th 2012 | Investing
Are you thinking about trying to get a loan of some kind? Then you definitely want to use an interes...
How to Emerge when Sinking in Payday Loan Debt
Published by James Blee on March 6th 2012 | Investing
Debts issue due to payday loan debt (PDL) is a relatively recent issue causing concern to many com...
Comprehensive Information about Forex Options Trading
Published by Rill Bell on February 18th 2012 | Investing
Forex options trading is a security allowing the currency traders to recognize profits without havin...
Buy a Good Medical Practice Insurance on line
Published by Prcontact on June 4th 2012 | Investing
Malpractice insurance is a major cost for all physicians. Here are some general tips for limiting co...
Purpose and Benefits of Taking Finance Bridging Loans
Published by Linda John on December 27th 2011 | Investing
Bridging finance is in reality short term finance which can be utilized in many diverse situations l...
Natural Gas Producers – Meet the Country’s Ever-increasing Demand for Natural Gas
Published by Albiemorkel on July 11th 2012 | Investing
Natural gas producers in the United States reach the consumers directly or through middle-men and pr...
Industry in Mexico and Opportunities for Foreign Investment
Published by Royal Curling on April 5th 2012 | Investing
Mexico is probably the biggest economies in the world, and much of its profit comes from foreign inv...
Opt for Currency Options with the Help of Forex Trading Signals
Published by Kelly Wagenheim on August 24th 2012 | Investing
Currency options give the right to contract holder, to buy (that is call option) or to sell (also kn...
Know how to stay updated with natural gas news on a regular basis
Published by Kevinpieter on August 22nd 2012 | Investing
Before taking investment decision, it is very important to know about the specific company profile. ...
Natural gas investments offer unique opportunity to earn lucrative returns over a period
Published by Mano Matthew on August 22nd 2012 | Investing
Natural gas prices have gone through quite a topsy-turvy phase. Since hitting the peak phase during ...
Singapore Company Registration: a Part of Starting New Business
Published by Andrews Thomas on August 22nd 2012 | Investing
Though Singapore company registration is one of the things, which a business entrepreneur needs to d...
Getting Idea of Fixed Income Products
Published by Fixedincome on August 20th 2012 | Investing
People get perplexed about the investment policies available in the market. They must have idea of t...
A great Agency for that Consolidation Associated with Debt That's Non Revenue
Published by Shyam Singh on August 18th 2012 | Investing
When you obtain a debt administration program via DMCC you'll be assigned an avowed Credit Counselor...