The Advantages of Binary Options are not known to all of you, to understand the difference between Binary options and regular options and how they are tradeded we have built this small table to give you more knowledge of this growing field of online trading.
|Binary Options||Vanila Options|
|Expirey||Wide range of expiration: every trading day, every hour, and Even less than an hour , for example every 15 min binary option expires.||one time every month.|
|Payout||Fixed payout , for ex’: 78%, 80%, 85%.||Changing, depends on the
underlying asset closing price.
|In-The-Money||If Price of the asset is in-the-money you win the fixed payout.||Requires a relation of the strike price and also it depends on the price you paid for the option in order to win the trade.|
|Execution||Don’t have the right to exercise before expiry time.||Can be exercised at any time prior to expiry .|
|Right to buy||Can’t be exercise to stocks.||The option can be turned into stocks only if the option expires ‘In-the-money’.|
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July 28, 2012 | by John Greener |