Option trading is a self-directed way to invest for those looking to diversify. But getting started isn’t easy, and there’s potential for costly mistakes. Here’s a brief overview with no confusing jargon. No unnecessary mumbo-jumbo. Just clear, easy-to-understand, option trading explanations to help you get started. Options contracts usually represent 100 shares of the underlying security, and the buyer will pay a premium fee for each contract. For example, if an option has a premium of 35 cents per contract ... The offer price of a binary options contract is roughly equal to the market's perception of the probability of the event happening. The price of a binary option is presented as a bid/offer price that shows the bid (sell) price first and offer (buy) price second, for example, 3/96, which represents a bid price of $3 and an offer price of $96. Binary options have a clear expiration date, time, and strike price. Traders profit from price fluctuations in multiple global markets using binary options, though those traded outside the U.S ... The binary options market is flooded with the offerings from the automated software developers. The abundance of choice available in the arena makes it very difficult for any trader to select the right binary broker for the trading and it is even more difficult to distinguish between the genuine and the scam-artists.
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