Many traders would first think of margin trading, with its high risk, high reward approach. However, there’s another high-risk strategy out there: Binary options trading.
What Is Binary Options Trading?
Among many financial instruments to tackle the securities market, options contracts are the most popular. As of mid-August, 2021, the average options trading volume amounted to 35.1 million, out of which 72% belonged to the top 100 public companies by market cap. According to a MarketChameleon report, they are mainly distributed across financial services, tech and consumer stocks.
Image courtesy of Market Chameleon.
Regular options are simply contracts that give investors an option (but not the obligation) to buy or sell an asset at a set price prior to a specific date in the future. Because it’s an option, this contract may or may not execute. If an investor decides to buy the option to acquire the asset down the line, they will make a “call option.” Likewise, if they decide to
Źródło: https://cryptoslate.com/binary-options-trading-with-bitcoin-how-it-works/
