Mobile technology is growing among consumers from all walks of life, and the world of financial exchanges is no exception. Binary options mobile trading is a fairly recent modality of trading on the go, and the simplified nature of these financial instruments make them ideal to trade on portable devices. Real-time trading of binary options on a mobile platform makes sense and it puts Wall Street right in the hands of traders anywhere they go.
Binary Options Open the Door to a World of Profit
The world of securities and derivatives trading is often criticized for being an unwelcoming place, particularly to novice traders who wish to learn the ropes and understand the complexities of financial exchanges. Not everyone wants to be a full-time trader or work in the financial industry, but Wall Street does not seem to have any patience for outsiders or casual participants. This excluding attitude has not gone unnoticed, and for this reason binary options are a welcome alternative to the white-shoe world of Wall Street.
Binary options are essentially derivative instruments of option contracts. Options allow many traders to participate in financial exchange markets that would otherwise not be available to them. For example, some of the most expensive stock of publicly-traded companies on Wall Street belong to Berkshire Hathaway and Google. Shares of these companies are heavily traded by giants of the financial industry like investment banking firms and hedge fund managers, but for many average investors these shares are simply out of reach,
By taking a position on the market with an option, traders are essentially claiming the right to buy or sell stock at a future date and only if the price is right. Options are just as speculative as any other financial instrument, but they have a number of features that make them a bit more complex. Binary options strip all complexities from trading and lower the barriers to entry around Wall Street.
How Binary Options Work
Just like the name implies, binary options have two possible outcomes. A trader approaches a binary option like a regular stock option, considering the price of the underlying asset. The trader may choose to go long and call the spot price at certain time, or he can short the price with a put. To take a position in the market, the trader can purchase a binary option with a payout if he or she is in the money when the contract expires, or one that pays the underlying value of the stock.
Binary options are sometimes called fixed return options since the traders, brokers and market makers are all aware that there can only be one payout once the contract expires. They are also known as European options due to their popularity in that continent. The underlying assets of binary options can also be found in the currency pairs of the forex market, and in this case they are called digital options.
Binary Options on a Mobile Trading Platform
The binary options market is growing fast thanks to mobile technology. They are simple to trade, easy to understand, and can be very profitable. The number of underlying assets is also growing, something that is attracting even more traders. Instead of paying for complex management fees to their brokers, binary option traders know that brokers include all participation costs whenever a position is taken.