In the following article, we will show you what the options market and how to make money by using assets.
Options market
It consists of the mutual agreement between two or more people to buy or sell an asset, this gives the seller a commitment and the buyer the right to execute it on the date that he deems convenient, it can even be more than one. The options market has several elements, which we can mention the following:
- Underlying asset: is that product that is the basis for the agreement between two specific people.
- Current price of a product: it is the price determined by both parties on a product.
- Premium: It is the amount of money that the buyer provides in the contract which gives him the right to the asset.
- Deadline: The contract has a deadline, to decide if it is carried out or not.
- Strike price: It is the price that the seller decides to put on the product, regardless of its value in the market.
Functioning of the options market according to the right exercised
To better understand the operation of the options market, the following terms must be understood and taken into account:
- call options: It is the right that the seller has to acquire an asset in the future, if he so wishes, at a fixed price, which has already been agreed upon.
- Put Options: it is considered a sale election, which gives the buyer the right to sell, if he wishes, the asset to the merchant at the price stipulated in the contract.
Operation of the options market according to the moment
Depending on the moment in which I know how to exercise the right you have, there are two types of options, which are the following:
- American Option: It consists of the right to exercise an option during the time in which the contract is active.
- European Options: consists of the options that can be used at the time the contract reaches its expiration date.
If you want to know more about this topic, we invite you to watch the following video:
binary options market
It consists of the investment opportunities offered to investors, who work in the financial markets, to bet on the rise or fall with respect to an underlying asset, with the aim of having monetary advantages, in the present or in the future. near.
On binary Options Market, There are multiple assets that can be bet on, depending on the place of binary bets, although normally, there are 4 groups of assets:
- Currency of currencies or Forex: it consists of that exchange quoted between two types of currencies.
- Commodities: are those assets such as gold, oil and silver.
- Indices: are the stock markets, you can find NASDAQ.
- Stocks: This is a smaller group of what you can bet on.
One of the variables that must be taken into account is time, since it determines whether a stock goes up or down, this is an option that our binary options broker provides us, this can be from minutes, hours, days and even weeks.
Depending on the broker that we use and the type of asset that we enter, the probabilities of success fall, as well as the profits, which can be between 60% and 90%.
For example: If the binary option on gold is at 70% and I invest 10 dollars to what is going down in the next 50 minutes and it is really going to go down, I would earn a total of 17 dollars. The money you invested, plus profits.
If you are interested in topics like this, we invite you to visit another of our articles: Forex market.