As is the case with other binary options, binary options on stocks represents a specific type of contract.
That allows the buyer (without forcing it) to buy or sell certain assets (also known as the asset base), by bargain price, also known as, the exercise price during the term of the contract, or immediately prior to completion. In granting the option, the seller receives payment from the recipient, usually called a premium. Option "call" allows the trader to buy the underlying asset, while the option "put" allows the trader to sell the underlying asset.
Trading binary options on the stock market is very different from the traditional trade in the stock market. Many note that the binary options market is active supplement and often become more popular element than the other, long-standing stock market trading tools.
It is important to note that in contrast to the standard options trading, binary options trading in the stock market is different to additional risk when placing trading bets. However it is important to note that when trading binary options, you'll never lose more than the principal of your investment. As is the case with other binary options, you receive income from each transaction. All you need to do - is to decide in which direction to change the price of the asset to which you decide to make a bid. Ordinary income is 65% to 81%, depending on the type of broker you choose and the type of the asset. Profit for the period affect the time frame for the option contract expires. This means that you can get a quick profit by trading binary options on the stock market.
This explains the fact that many experienced traders and beginners, interested trade on the stock market, prefer to invest it in the options, and successfully receive this huge profit.