Option - what is it? Types of options. Options trading

Earnings on the Internet every day is becoming more popular. There are several reasons for this: firstly, it is a remote job. A person forced to get up early every day and stand in traffic for several hours, happily exchanges the main place of employment for a free schedule in his own apartment. Of course, such earnings also have their disadvantages: for example, a newcomer will not easily find his niche, but it should be said that if in real life a person is engaged in intellectual work, he will easily find himself in the online field.

There are many ways to self-actualize in a global network: from freelancing (work for hire) to running your own business. The earnings associated with the conduct of trading on the financial exchange stand apart. For many, this area is somewhat mysterious, since there is no understanding of the securities markets on the Internet. Meanwhile, the transfer of the exchange to the vastness of the World Wide Web has made it accessible to a wide range of users. If earlier, only a professional trader with access to the trading place could trade assets, now everyone can do this - just make a couple of clicks. The most advertised type of exchange games is option trading. Surely many people met advertising of various trading platforms, tempting offers of brokers about bonuses on the deposit. It is also worth it to trust. Binary option - what is it? These things will be discussed in the article.

What is an option

In fact, this concept has appeared quite a long time ago. Afterwards, it was successfully adapted to the financial markets. Option - what is it? This is a definite agreement, after the expiry of which expiration period there are several possible outcomes, which will determine in whose favor the option is closed. In other words, this is an argument for an event. The simplest analog of the option can be considered a bet on a sports match. Further - with the advent of the opportunity to trade securities and currency on the Internet - this concept has acquired a slightly different meaning, although the essence has remained the same. Quite often there are people who, after hearing the word "option", immediately represent huge markets with financial analysts and trades.

Now this is not quite true, and brokers in some way can even be considered bookmakers. Why this is so, consider below.

Binary Options

The most widespread real options were received in the currency online markets in binary, or, as it is also called, binary form. What is the general principle of trading such assets? Everything is extremely simple. Suppose you have already registered on the broker website and selected a currency pair. Further, it is required to determine the expiration time of the option - the gap through which it will be closed (here different options are possible, from one minute to the whole month), specify the contract price and choose the prospective direction: up or down. In the event that, at expiration of the expiration period, the option value in points will be greater (or less) than the one that existed at the time of opening the transaction, the option will be considered as winning. In other words, you will receive money in the event that you guessed the direction of the traffic flow.

Why brokers are similar to bookmakers

As already mentioned above, many believe that trading options is akin to sports betting. This is partly true. The similarity is observed, firstly, with the organization of work: you make a bet, wait and receive or do not get the result. The second reason can be considered predictability (it is present in both cases). Of course, the outcome of sports competitions can be assessed at the level of common sense: the latest results, the form of the athlete and so on. With binary options such a number does not work. In order to successfully analyze the behavior of the market, you need to have special knowledge. There are various strategies for trading options, which, with the proper level of professionalism of the trader, are able to bring a constant income. Brokers, for the most part, are only intermediaries between the trader and the real market, that is, in fact they only take some money from the loss.

How to trade options

So, now we can answer the question: "Option - what is it?" I would like to know how to profit from the trade in these assets. To begin with, a few figures: an average trader with a standard percentage of losing trades per day is about $ 100-200 (assuming employment for several hours, most of which are market analysts and strategy selection).

Before opening a transaction, you need to familiarize yourself with the technical analysis. If you have an economic education, it is not superfluous to understand the topic of fundamental analysis, which will increase to come at times. It is also recommended in the arsenal to have several trading strategies suitable for a specific market situation.

What is analysis

Analytics is almost an important part of trading in financial markets. There is a golden rule: "Seven times measure, one cut", and sometimes one transaction can be preceded by hours of counting and fitting. The schedule of options is being studied, important economic news that can influence the situation is taken into account - and this is only a small list of what traders do for a successful transaction, the amount of which can be, for example, $ 1000, and the yield will be about 80%. With one successful purchase, he secured a monthly salary of a worker at the factory, and this in a couple of minutes! Of course, options with a short expiration time are difficult to analyze, and they bring the biggest one.

Technical and fundamental analysis

As already mentioned above, there are two types of analysis of the market situation - technical and fundamental. The first is advised to all newcomers who only make the first steps in trading. Its data are shown on publicly available resources, where it is indicated in which direction the schedule will go. In other words, technical analysis uses only information extracted from the behavior of the chart in its toolbox. The second type is fundamental. The very word says that the primary sources that can explain this market situation are being studied. This work can only be done by professionals. Technical analysis is trusted in most cases by machines.

Strategies

It is not difficult to guess that a lot of strategies have been created for the work on the exchange, but there are also some nuances here. Someone likes more aggressive trading, when one or two transactions can close income, while others, on the contrary, use a more conservative approach. It is worth saying that not all fit well for such models. Each currency has its own behavior, which can differ from the rest. The rating of options that fit well on various strategies is not invented, but it is known that in a stable economic situation, the euro / dollar pair works very well with the models.

Conclusion

So, the binary option - what is it? We answered this question in the article, but touched on this topic only slightly. For the world of financial markets is so vast that it is completely impossible to study it. But learning how to get out of it is easy - a little hard work, and you will succeed.