Binary options or financial options
Binary Options are a financial derivative designed to speculate on whether the price of the asset to which it is replicating the derivative, finish above or below the price, at the time marked (sometimes in temporalities low as 1 minute for example).
These are different financial options that we saw before, we can only speculate with the movement of the asset to which it refers, and not with the time, as it is with financial options. In binary options, the time plays in our favor since it is fixed (which is reverse in the financial options).
Features of the binary options
If the price ends above or below your entry you will win or lose money respectively. What makes it very simple to understand.
There are No commissions for trading.
There are many possibilities of maturity, especially in the short term.
The benefits are attractive.
They are not regulated.
It is not for beginners, there are many lost with this product.
In if, these are systems of betting, therefore the Binary Options brokers encourage that, instead of being investor, whether you are a gambler.
There is not a market “real” Binary Options, in reality, it operates against the broker, who will be very interested in winning.
Not managing the operation, this means that there are no stops loss, or target, among others. This topic we will see below, and understand why it is important to manage the operation.
Are not recommended, but as it is a course of trading we believe that you should be aware that financial instruments exist and take your own decisions.
Our recommendation is to look for another type of financial asset.