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It is quite possible that you have heard of options but if you have any idea of investing in this lucrative but risky business the first question you need to ask yourself is what are options? Though there is no straight forward answer to this question you could find the answer when you read literature available on this subject. Internet has lots of resources from which you could find details on it. In case you get some idea on the options your next question will be what is binary options. When you go on educating yourself on the subject you will learn that it simply is a type of options. In order to understand what are options it is necessary for you to take an example. Suppose you are going to buy a certain property that is going to be sold for $100,000. As it will take three months for you to find the money you come to an agreement with the one who is selling the property that you will buy the property for the above sum in three month’s time. For holding the property you pay him $500. At the end of the period if you feel that you could sell the land for $110,000 you buy the property. If you feel that the property has lost it value you never do the purchase but your $500 will not be returned. This is a very short answer to your question of what are options. In case anyone asks you what is binary options the shortest answer you could give is that it is a type of options where you get all or nothing. This is like binary code which only has 0s and 1s. Suppose you make a binary option for a payoff of $500 for the price of a certain stock to be $50 on a certain day. In case the stock is trading at $50 or above on the agreed day you get your $500 and if it is trading at a lower price on the expiry date you get nothing. This is the simplest answer you could give to the question of what is binary options if anyone asks for it. It is a good idea to invest on options but just getting the answer to the question of what are options itself is not an easy task. When you try to invest on options you will try to read literature on this subject in order to learn how to do it but in every bit of literature you will find that dealing in options is risky business. The same is true with the question of what is binary options. Therefore, it is necessary for you to learn the subject and gain experience on it before you are going to do anything with options no matter what type of options you are going to deal with. In case you are highly educated on the subject and also you have gained enough experience, you are going to end up a winner with options though it is risky business. What is binary options and what are options are the two most probable questions anyone could ask you if he is interested in options. If you could answer these two questions you have some idea on the subject of options.
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