Binary options are an issue of great importance when entering the world of investments in the stock of securities, most of the actions that are carried out in the purchase and sale of shares or assets of value in the main stock exchanges. of values around the world are based on binary operations. At this time you will ask yourself:
Why are binary options important on forex platforms?
These options or binary operations are based on two possible outcomes, which may be to obtain profits or lose part or all of the investment you have made. These types of shares are called “all or nothing”, due to the possible results that can be obtained with the use of binary operations for the acquisition or sale of shares or assets in the stock markets.
There are two known types of binary options, which are:
Binary options cash or nothing: this type of binary option applies when the currency of exchange for the purchase and sale of shares is made with cash such as dollars, euros, among others.
Active binary options or nothing: this binary option is used when the exchange currency for transactions in stock exchanges are valuable assets such as precious metals (gold, silver, platinum), properties, real estate, among others.
One of the biggest advantages when deciding to use this type of operations is the existence of digital forex platforms that provide you with all the necessary advice and information so that you have knowledge about how the markets of goods and values around the world move as per example Nasdaq, Brexit or stock market of Mexico.
Some of these most recognized platforms are Forex or Iqoption which will make available to your technical staff trained in the field of #investments to advise you on this interesting and broad topic in the area of global economy and finance.
How do forex platforms work?
So that you have a small idea about the operation of the binary options, let’s make an example with the two possible scenarios:
Imagine that we wanted to buy a Waltershift stock on the New York Stock Exchange, at the time of buying it, the stock had a value of about 100 dollars, during the course of the day we decided to sell our stock and at the time of sale the The sale price was 125 dollars, so we obtained a profit of $ 25 for each share sold, in this scenario we obtain net profit.
As in the first scenario, we decided to buy an action in the Waltershift company, which had a purchase value of 100 dollars, but we decided to sell our stock and we realized that at the time of selling it, it was priced at $ 75 .
In this scenario we can visualize that we obtained a loss of the investment made.
To avoid the type of situations that occurred in the second scenario, the most important thing is to be attentive to the different indicators that guide the global financial markets, some of the best known are “Bear Market” or bear market, this indicator tells us that the market is down to acquire shares, another known indicator is the “Bull Market” or bull market, in this situation the market is favorable to acquire shares and listed on the stock exchange.