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Thursday, 2 October 2014
Learning the two outcome options.
A Binary Options trader needs to expect the obvious direction of the price movement of the underlying asset. Within most platforms the two choices are referred to as Put and Call. Put is the prediction of a price decline, while Call is the prediction of a price increase. Unlike traditional options, knowing the magnitude of the movement is not required. Instead, you must only be able to correctly predict whether the price of the chosen asset will be higher or lower than the strike price. If the investor has an opinion about an underlying asset and wants to place a trade, s/he can trade Binary Options.
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