Known as digital options or fixed return options are a hybrid between traditional options and fixed-return financial instruments. Digital options are simple, and they are ideal for the trader who wants the potential for significant, short-term gains with a strictly limited risk.
This means that a trader who trades forex binary options can know immediately and exactly how much a trade will yield or lose. A binary option allows you to form an opinion on whether a specific outcome will or will not occur. They can only have one of two possible outcomes. Unlike a spread bet a digital option does not require margin, or stops and you know the exact maximum risk and maximum profit.
Binaries, can have only one of two possible outcomes. When trading binary options you only have to ask yourself two questions. First, what is the current rate of currency we are watching? Second, can we expect the rate to be higher or lower in a fixed time from now? For example, imagine you are a trader who is willing to risk $100 on the idea that Euro/Dollar’s exchange rate will increase in one hour from now. If your prediction is correct and the fixed return rate is 70% you will receive $170. If incorrect and your option decreases below the strike price, you will lose your initial investment and receive nothing. The term ‘binary’ thus suited this all-or-nothing type of trading. You should now be starting to realize why binary options are fast becoming the simplest way to trade the markets and are yielding large profits for online traders.
One Hour Options are considered as a mass market financial instrument as it empowering traders with a very flexible trading approach without the complexities involved trading traditional vanilla options. Whether you are looking for a short term speculation or hedging you portfolio, our binary options alerts can help you get high payout within short one hour trading durations.