Are stock options binary?

A binary option based on a stock index future is a contract used for speculating on a particular stock index, such as the futures derivative of the S&P 500 or the NASDAQ 100. Traders buy or sell binary options depending on whether they think the underlying market will move up or down.

What is the difference between binary options and digital options?

Binary options are a prediction of whether a price will increase or decrease from the current position and therefore the strike price is the current price. With digital options, the strike price is set by the trader, meaning they are dependent on the price change as well as the direction.

What is the difference between forex trading and binary options?

One of the major differences between binary options and forex trading is the fact that in binary options you’ll be betting on the movement of an asset while in traditional trading you’re required to buy assets and then sell them later when their price has increased.

What are binary options and how do they work?

A binary option is a somewhat simplified version of options trading. How to binary options work? In trading either American or European style standard options a trader purchases the right to either buy or sell 100 shares of a stock, which he will do if the stock price moves as he anticipates.

What is the best binary trading platform?

SpotOption – A Pioneer in Mobile Binary Trading

Who regulates binary options brokers?

In America, binary options are regulated by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). To date only one broker has achieved regulation from them, and that is NADEX , an options exchange governed and monitored by the CFTC.