In binary option trading, the potential gain or loss is known at the onset of the contract and it is determined by the amount invested by the owner. So, there are only two possible outcomes: or the option expires in-the-money and the owner receives a 65-71% payout; or the option expires out-of-the-money and the owner receives nothing. However, if binary option trading is carried out with anyoption™, an owner receives a 15% payback if his option expires out-of-the-money.

There are 3 aspects to the trade: the underlying asset, the expiry time and the direction the asset will move in.

The underlying asset is the item which is being traded. This could be a range of products: currencies (e.g. USD/GBP), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100).

The expiry time is the pre-determined time which defines the option’s end. The option can end at the end of the hour, day, week or month.

The direction the asset will move can either be up (known as a call option) or down (known as a put option). A buyer purchases a call option, if he thinks that by the expiry time, the asset will be above the strike price. He places a put option if he believes that by the expiry time, the asset’s price will be below its strike price.
This makes binary option trading very flexible.

The buyer can control the asset, expiry time and predicted asset direction. Due to the fixed return nature of options, the buyer also knows the potential gain or loss from the trade – he must only wait so see the direction the asset will move in.

A buyer can trade binary options on an online options trading platform such as anyoption™ which is a new binary option trading platform available for private and institutional investors worldwide. It is 100% web based, and does not require software download or any other previous trading experience. The interface is self explanatory and easy to use, the range of assets that options are offered on is incomparable and the speed and accuracy of settlements is flawless. The most advanced and stable technologies are used to ensure the safety and satisfaction of traders.

This means that anyone can start trading immediately. Just open an account with anyoption™, deposit money and follow the simple process:

1. 1.Select the currency pair which will be traded on e.g. USD/EUR, GBP/JPY.
2. 2.Choose the investment amount for the selected binary option. This can be anything from $50 to $3,000 (or equivalent), though multiple trades can take place simultaneously.
3. 3.Decide if the asset is likely to increase or decrease. If increase then select a call option, if decrease then select a put option.
4. 4.Choose an expiry time –end of the hour, day, week or month

All a buyer must do is then wait for the expiry level of the chosen binary option to be finalized and displayed in the trading box. If the option expires in the money then the buyer makes between 65%-71% profit. If the option expires out-of-the-money then he receives a 15% payback of the initial investment.

There are several reasons why trading in binary options is rising in popularity:

1. 1.The risk involved is totally controlled and known by the option buyer. Should the option expire out-of-the-money, he will only lose 85% of his investment amount.
2. 2.There must only be an incremental change in asset price for the buyer to profit - a move of only a 4th decimal point can render the option in-the-money and yield profits for the buyer
3. 3.A buyer does not need in-depth knowledge of the market in which he’s trading – he requires a sense of direction of an asset, since magnitude of the asset movement is not important
4. 4.Binary option trading is extremely flexible, with a buyer able to select the asset, expiry time and price direction to suit his needs

A binary option is a contract which gives the buyer (known as the owner) the right, but not the obligation, to buy an underlying asset at a fixed price within a specified time frame.

The items being traded are known as underlying assets and they could be a range of products: currencies (e.g. USD/JPY), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100). The fixed price at which the owner buys or sells at, is known as the strike price.

When trading binary options, the buyer of the option chooses whether he thinks the underlying asset will hit the strike price by the selected expiry time – this could be at the end of the nearest hour or the end of the day, week or month.

The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.

In this respect binary option trading is extremely flexible. The asset, expiry time and predicted asset direction can be controlled by the owner of the investment who can select each one as he desires. The only unknown factor is if the asset will expire higher or lower that its existing price.

The returns from binary option trades are set from the onset of the contract. If an option expires in-the-money then a buyer will receive between 65-71% profit on the investment amount. If an binary option expires out-of-the-money then with anyoption™, the buyer will receive a 15% payback on his initial investment. The certainty of binary option trading makes it a preferred method of trading for many investors since not only is the potential gain known from the offset, but more importantly the potential loss is fixed and they will not be called upon for cover an investment which ended out-of-the-money.

This is how trading binary options would work: Investor A invests $100 on a call option on Oil, with a 70% return rate, with an end of the day expiry time. The current rate of Oil is 65.9001. If at the end of the day the price of oil closes at 65.9002 or above, then Investor A will receive $170. If it closes at 65.9000 or below, then he will receive a $15 payback. The simplicity of binary option trading makes it an attractive and desired way of investing for many investors.

The difference with trading binary options to traditional trading is that in binary option trading, a buyer is just trading on the performance of an asset – they will not actually own the asset itself. For example, in a stock option trade in Microsoft, an investor is not literally buying Microsoft shares, but rather opening a contract on whether the shares of Microsoft will increase or decrease within a specified time period.

Due their uniqueness, binary options have several advantages.

They are easier to trade because only a sense of which direction the asset will move in is needed

There is a controlled risk which is known from the onset of the contract -  the 2 possible outcomes are pre-determined and set by the buyer depending on how much he invests in the option

For a binary option trade to be profitable, the option must only move in the predicted direction – the magnitude of the move is not relevant hence it is easier to receive a payout

Binary option trading is extremely flexible, due to multiple expiry dates and times, the range of underlying assets on offer and the ability to trade online without the need for a broker

So, whether you are a investor new to the world of trading options or a old-time trader used to the traditional trading market, it is recommended to try your hand at the phenomenon that is binary option trading and see how it could work for you.

One Touch Option Trading: Possible 350% Return in a Week!

Starting this weekend, anyoption™, the world’s largest binary option trading platform, will be offering weekly one touch options on a large variety of financial assets, including index options, stock options, commodities options and currency options.

Every weekend, right after the markets are closed, anyoption.com will allow investors and traders to purchase short-term one touch options for the following week. The guaranteed return for these options when the ‘touch’ takes place are very high - between 200% and 350%.

For example, if the NASDAQ closes on Friday at 1,800, the anyoption™  trading system will offer two separate one touch options: one for the NASDAQ to touch 1,830 at least once in the following week, and one for the NASDAQ to touch 1,770 during the following week. For both touch options the returns will be very high, depending on several parameters.

The advantage of trading one touch options is that they do not have to be cashed in at the expiry time, but rather at any point in time during their life. They can also be used as hedging tool for stock option strategies or forex spot positions.

“After offering thousands of customers worldwide an easy and smart way to trade real-time binary options in over 50 markets, we are now responding to demand from our customers for off-hours trading. Like our binary options, the one touch trading interface will be clear and easy to use. One unit is priced at US$100 to allow entry-level traders to experience this great tool,” says an anyoption spokesman.

About anyoption™:

Anyoption™  is an all-proprietary options trading platform. Unique algorithms allow trading with customers at any time. Liabilities and exposures are managed smartly, to guarantee immediate payout of profits. anyoption™ is registered in Cyprus and owned by a group of reputable individuals with many years of experience in risk management, derivatives, forex trading, exotic options pricing, payment processing and international laws and legislations.

LONDON, June 18, 2009 /PRNewswire via COMTEX/

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“Our product sets a new standard in trend trading. Unlike forex trading or other leverage-based trading, this is the ultimate hedging tool. We allow very short-term to medium-term investments on such a big variety of assets that you can hedge almost any aspect of the global economy,” said anyoption™ spokesman.

anyoption™  is offering quotes for Call and Put options for over 50 assets, with different expiry points: hourly, daily, weekly and monthly. The guaranteed return on the options is between 65-71% and there is a 15% loss protection across all trades.

The website is offered initially in three languages - English, Spanish and Turkish - and additional languages will be added shortly. The anyoption™ trading platform includes advanced personalization and localization features. Site visitors will be presented with hedging options that are more popular in their region.

No other binary option trading house is offering such a wide range of assets. In addition to main US and Europe indices (Nasdaq, Dow Jones, S&P 500, FTSE, DAX, IBEX and more), popular stocks (such as Google, Microsoft and Citibank in New York; Barclays, Vodafone and British Airways in London and Santander and Telefonica in Madrid), main currency pairs (EUR/USD, USD/JPY, EUR/GBP) and important commodities (Oil, Gold, Silver) - anyoption™ is offering options on more exotic assets such as Mexico City IPC and Carlos Slim’s telco empire, Turkey’s ISE 100 main index and local giants such as Turkcell and Isbank, Gulf and Emirates exchanges (Kuwait, Saudi and Abu Dhabi), Bombay 30 and Shanghai SSE 180 and many others.

The trading on the site is on a cash basis and deposits are accepted in real time via credit cards and bank transfers.

anyoption™ is a brand new all-proprietary trading platform. Unique algorithms allow trading with customers at any time. Liabilities and exposures are managed smartly, to guarantee immediate payout of profits. anyoption™ is registered in Cyprus and owned by a group of reputable individuals with many years of experience in risk management, derivatives, forex trading, exotic options pricing, payment processing and international laws and legislations.

Anyoption Payment Services Ltd.
Online Options Trading - anyoption™
Phone Number: +44-20-80997262
- support@anyoption.com
- www.anyoption.com

You couldn’t lose. Well we can’t. I love options spreads so much I realized something very important. We can buy a spread that has a lot of time value left at almost the same price as we can sell one with less time value left. The reason really opened my eyes and gave me new insight into options. Here is what I came to realize.

I started comparing how expensive options were in relation to the other strike prices in the same month and to the other months. I wanted to know based on the price per day which options were more expensive.

The first 1 or 2 option months, as everyone knows loses time value quickly. The at the money strike prices are very expensive compared to the out of the money strike prices. Since there is not that much time left, how much can they charge for an out of the money option? Not much.

The next several months, the opposite is true. Compared to each other, the strikes that are closer to the money are cheaper in terms of price per day than the options further out of the money. Let me explain it another way using the S&P market.

6 days left at the money option cost 12 points
6 days left out of the money option cost 2 points

70 days left at the money option cost 43 points
70 days left out of the money option cost 29 points

There is more than 10X the time left but the 70 day at the money option (43 points) is only less than 4X the price than the 6 day at the money option (12 points).

The 70 day out of the money option (29 points) is almost 15X the cost of the 6 day out of the money option (2 points) but only has 10X the time value. We will buy the cheaper options and sell the more expensive ones.

Sell 6 day at the money and sell 70 day out of the money. Buy 6 day out of the money and buy 70 day at the money. This will be done for a 4 point debit. We are now buying a spread that has 10X more time value than the one we are selling and are only paying 4 points for it.

When the 6 day options expire we can sell the next month to take in more premium, still keeping the 70 day option spread.

What is an option?
An option is a contract, or a provision of a contract, that gives one party (the option holder) the right, but not the obligation, to perform a specified transaction with another party (the option issuer or option writer) according to specified terms. The owner of a property might sell another party an option to purchase the property any time during the next three months at a specified price. A lease might contain a provision granting the renter the option to extend the lease for an additional year.

A corporate bond might have an option provision allowing the issuer to purchase the bond back from the purchaser five years prior to maturity for a specified price. A speculator might purchase an option to sell at any time during the next three months 100 shares of a particular stock for a specified price.

Option contracts are a form of derivative instrument. Stand-alone options trade on exchanges or OTC. They are linked to a variety of underliers. Most exchange-traded options have stocks or futures as underliers. OTC options have a greater variety of underliers, including bonds, currencies, physical commodities, swaps, or baskets of assets. Options can be embedded in almost any contract. Above, we gave examples of options embedded in a lease and a bond.

Options take many forms. The two most common are:
call options, which provide the holder the right to purchase an underlier at a specified price;
put options, which provide the holder the right to sell an underlier at a specified price.

The strike price of a call (put) option is the contractual price at which the underlier will be purchased (sold) in the event that the option is exercised. The last date on which an option can be exercised is called the expiration date. Options may allow for one of two forms of exercise:

With American exercise, the option can be exercised at any time up to the expiration date.
With European exercise, the option can be exercised only on the expiration date.

The origins of the names “American” and “European” in this context are unknown. They are unrelated to practices common in any particular geographic region.

A third form of exercise, which is occasionally used with OTC options, is Bermudan exercise. A Bermuda option can be exercised on a few specific dates prior to expiration. Yes, the name was chosen because Bermuda is half way between America and Europe.

As an example, consider a three-month, European exercise, strike USD 22.50 put option on 100,000 barrels of Brent oil. Such an option might trade OTC. It has:

underlier: Brent oil
notional amount: 100,000 barrels
expiration: in three months
strike price: USD 22.50

It gives the holder the right, but not the obligation, to sell the issuer 100,000 barrels of Brent oil three months from today for a price of USD 22.50 per barrel.
Puts and calls are sometimes called vanilla options to distinguish them from more exotic structures.

What are the Benefits of Options?
For a company, options are attractive because they are a good way to keep good workers and attract the best new employees. Companies can use options to ensure employee loyalty and to reward good employees. For companies that are just starting up or don’t have a great deal of cash, options are a good idea to make employees feel valued without a large cash output.

The Options Investing Process
When a company offers options, the usually offer a special price on option stock. This price is called a strike price or grant and is discounted. In many cases, the strike price is the actual market price of the stock at the time the option is granted. Since companies usually stipulate that options can only be exercised at specific times, there’s the very a possibility that shares will rise in prices .In that case the chances of profit are huge.

To understand investing process for options, an example may help. If a company offers options for buying 1000 shares at five dollars each, they will often stipulate that the options can be exercised only after specific dates. By the time that date has rolled around, the stock may have risen to eight dollars each. The person with stock options at this point can convert the options into actual stocks. This allows the investor to buy the stocks at only five dollars per share and after waiting for some time he can sell the stocks for profit. The investor can also sell some of the stocks and keep some shares for later. Some investors choose to convert their options in stocks and then hold on to the stocks with the hope that they will raise even the value.

The important part of this process is that options must be converted into stocks. This is because most options have an expiry date after which you lose your options. This means that you cannot be tardy when making your conversions.

One more important thing to remember when thinking about options, online trading are that there are in fact two types of options: call options and put options. Call options are simply those that give investors the right to buy stock, while put options offer investors the right to sell a stock. As with all options, there are time frames as well as set prices for the stocks that can be purchased through options.

Binary options - also known as digital options or fixed return options - are becoming more and more popular in recent years and are in considerable demand especially in times of markets uncertainty. The advantages are clear - return is known in advance, no liquidity or execution issues, wide range of expiry points and a unique feature of anyoption™: 15% of the principal investment is paid back even if your option expired out of the money.

Our proprietary algorithms allow us to trade with you at any time, as long as the base asset is being traded in the relevant market and we receive accurate data streams from our data provider - Reuters. It is strongly advised to read carefully our terms and conditions and that you become fully aware of the difference between the level we offer options at and the real time market price, according to which our options expire.

We manage our liabilities and exposures carefully and we guarantee payouts of your profits according to our terms. Customers deposits are held in a separate trust account and are not being used for any purpose other than purchasing options via our website by the customers.

Our dedicated customer service team is here at any time to answer any further questions you may have after reading our FAQ and the quick guide.

Anyoption Payment Services Ltd.
Online Options Trading - anyoption™
Phone Number: +44-20-80997262
- support@anyoption.com
- www.anyoption.com