Best 3 Binary Option Brokers Evaluated by 350 Traders
Binary options are a fairly new type of investment. They are also known as "all or nothing" options. Instead of buying the asset itself, traders are able to predict the movement of the price of the selected asset. If you buy a binary option, then a contract is created, allowing you to purchase underlying asset at a fixed price. A binary options broker provides binary options for trade, and is usually an individual or a company or corporate entity.
The BinaryOptionBinary.com has been offering some of the most detached reviews throughout several years. We've been working hard nonstop to collect genuine comments of a great number of Binary options traders in order to write advanced and valuable reviews for our top brokers. If you are looking for a good reliable binary options broker, go through our list below with the best 3 binary options brokers.
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What is a Binary Options ?
As the name suggests, binary options can have only two potential results. Other names for these options include "cash-or-nothing options", "fixed return options", and "digital options". Fixed return options are widely known in US as they are considered as American style options, and binary options are European style options.
Usually, "cash or nothing" and "asset or nothing" are the two major binary options that are offered by binary options brokers.
The difference between these two is what is being paid. If you're using "cash or nothing option" and win, some fixed amount will be paid on the expiry of the contract. For "asset or nothing option", you will have the chance to gain the value of the underlying asset on the maturity date. Here is an example of a flow of binary option.
Let's say you purchased a binary "cash or nothing" option for a currency pair at the strike price of 1.1574 with a binary payoff of $100. You will win and earn $100 if the price of the currency pair is at or higher than the strike price, and you earn zero if it's lower.
Choosing a Binary Options Broker
Binary options contracts were only available OTC (over-the-counter) back then, which means the transaction is done directly between a trader and a broker and not via an exchange or market. When exchange traded binary options started to gain attention in the trading world, they were considered mysterious and sophisticated.
However, it all changed when the rules were changed by the Options Clearing Corporation (USA). As they allowed listing of cash-or-nothing binary options, a great number of binary options brokers have started to offer web-based exchange-traded binary options which are much simpler and easier to understand, on online trading platforms. This trading platform can be either downloaded or web based, or both.
Obviously, web-based platforms gained much more popularity since traders can access and manage their positions from anywhere they want as long as there is a computer with internet connection, including their mobile devices.
When starting binary options trading, it is very important to have enough knowledge so that you can choose the right binary options broker. You will need a proper research and understand the terms and conditions of each broker you visit, in order for you to find the most suitable one for you.