When the spiral of the markets seems to be out of control, binary options offer an alternative to the more conventional trading. Binary options provide the opportunity for the inverter to react to a given done in markets, identifying and managing the risk these operational. By definition, the binaries are fairly easy to understand. They are based on a condition on which the trader exercises their forecast. This foresight has only two exits or options exist: Yes or no. If the answer is Yes, option is settled at 100, and if it is not, the option is close to 0.

By this we can say that the binaries are based on all or nothing. The only way out to a binary option, is that the condition is met or not. This is easier to understand with an example. A condition in which a binary can be based would be: the FTSE will close on the upside today or Wall Street will fall between 20 and 30 points before 19.00 hours CET. As mentioned previously, the only way out before this option is Yes or no, i.e. that these events occur in the market, or that they do not give. Once the trader has been positioned in the correct context with respect to the level of risk that its operational represents, binary options are presented as a kind of trading fairly different and intriguing.

If the trader buys an option to 40, the most you can get in profit will be 60 and the maximum losses would be 40, since the operations can only be moved between 0 and 100. Binary options have their background in sports betting and adapted to financial markets around the year 2003. Since then this method has proven quite popular for those who prefer by trading in the short term, since with binaries may get payout is very relevant, although a very important risk level they behave similarly. IG Markets offers binary on a large number of active options, from badges, to indexes or commodities. With IG Markets binaries you can get a great potential for returns due to the multitude of markets which can be accessed with a risk that is limited to open position. Therefore the trader, since the beginning of its operational, known maximum capital you are willing to lose. The above comments do not constitute investment advice and therefore IG Markets does not accept any responsibility for any use that can be made of them. CFDs are a leveraged product that entail a high level of and can result in losses that exceed your initial deposit. Make sure that you understand fully the risks involved and perform a constant monitoring of your investment.