Monday 26 October 2015

What Are 0-100 Binary Options




AnyOption Now Has 0-100 Binary Options


AnyOption is a leader among binary options trading platforms. It is innovating CySEC binary options with 0-100 options.


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AnyOption Has 0-100 Binary Options


AnyOption has innovated the binary options industry once again. You may recognized Anyoption as one of the first and longest lasting of the European style binary options brokers. This broker has been working hard to bring binary options into mainstream trading and its new 0-100 binary options is another step in that direction. One of the biggest areas of concerns in the binary options industry is regulation. AnyOption and many of its fellow Cyprus based binary options brokers is now CySEC regulated which is a good step. This makes the industry safer and more standardized. One thing it does not do is give these brokers access to the U. S. marketplace. Aside from being a great method of trading binary options 0-100 options are a step in the direction of CFTC regulation. 0-100 is the same style binary options as what are traded on NADEX and the other major U. S. exchanges.


How To Trade 0-100 Binary Options


0-100 Options Are Tradabel


Selling 0-100 Option


How Do You Trade 0-100 Binary Options


AnyOption's 0-100 binary options are a cash settled all-or-nothing fixed return trading vehicle. This sounds really complicated but it isn't. 0-100 options are a binary option whose value at expiration is either 0 or 100. If you are trading dollars its $100, if euros then €100. The main difference between these and other types of binary options is the strike and how the option is priced. So far there is only one asset and one strike available at any one time but hopefully that will change. Strike is determined by AnyOption and then you trade on whether you think the underlying will close over or under that strike. This sounds a lot like high/low options but there is a big difference. The strike is set in the case of 0-100 options and the price fluctuates according to the price of the underlying. Because the price of a 0-100 option at expiration is either 0 or 100 the price of the binary option will fluctuate between 0 and 100.


How Are 0-100 Options Priced


The pricing of 0-100 binary options leads to some other differences. First, these options are bought in lots. Each lot represents 100 shares of stock and is worth $100 if it expires in the money. The price of each lot will be somewhere between $0 and $100, depending on the price of the underlying asset. Your potential for profits will be the difference between the price of the option and $100. This makes 0-100 options one of the highest potential returns on investment in the binary options world. If you buy an option for $10 and sell it for $100 you have made 1000% profit. However, it is more likely your option will cost in the range of $40ish-$90ish based on my observations.


Another big difference with 0-100 options and other forms of binary options is credit. Most other forms of binary options are strictly debit positions. You have to buy them and your account is debited because your two choices are to buy a call or buy a put. 0-100 options are traded differently. If you think the position is going to close in the money you buy it at the market price. If you think its going to close out of the money you sell it. When you buy you pay the market price and when you sell you receive it. Your risk for selling a 0-100 option is the difference between the sale price and $100. If you sell an option at $75 then you are risking $25 or 33%. If you sell an option at $35 you are risking $65 or 180%. If the option closes out of the money you receive the credit and incur no other risk. If the option closes in the money you have to pay $100.