“Our Foundation Newsletter” was created 1 March 2001 by RGHF (Rotary Global History) Founding Member, Past Rotary Foundation Coordinator, and RGHF director emeritus PDG Dr. Eddie Blender and is now edited by Past RGHF chair Calum Thomson, Scotland.
It is not just newsletters, but many rules and regulations get changed over time too. This is done to suit the current needs and also to ensure the concept evolves over time and is in tandem with the current scenario.
If you take investments for that matter, what used to be a small scale operation has now blown over and is a full pledged international operation. One can invest in stocks and precious metals, from any part of the world. And with technology improving, the trading has all gone online for one and all to use, right from the comforts of their own homes. They need not travel to a common place where the stocks are bought and sold, need not shout and get what they want. People can pick up binary options and other stock options, with the touch of a button today. To top it all, we have the automated softwares like HBSwiss, where one need not do much and the App will take care of it all. All the analyses is done by the computer and the investment moves are done for you based on these analyses and calculations. Being developed by an experienced trader, this software takes into account everything a trader would, before making an investment.
However, if you are planning to invest in the stock market by buying some binary options for yourself, here are few of the terms to know about:
Binary options, also known as exotic options are available to invest in and sell within a fixed time period as they have an expiry date. The most common among these options are the high low option, also known as the fixed return option. The expiry time is also called a strike price and this is the price that determines the outcome of a trader’s investment.
If the trader’s judgment is correct and when the option expires, if his quote is on the right side of the option, he is paid in full. The instrument may have moved only a little but if it had gone up as anticipated by the trader, even if it does not match the amount quoted by the trader, he gains.
On the other hand, if the instrument had moved in the other direction, even if only a little, the trader loses it all. Hence the risk is high and the returns are also equally high. Trading in binary options will require one to have a sound knowledge about the market; else they can take help from the various softwares available in the market.
When the market it expected to rise, the trader purchases a call option and when the market is expected to go down, the trader will purchase a put option. When the option expires, the movement of the option is analyzed to see if it has indeed gone up or down. And then the trader is settled, based on his call or put option.
When the binary option is outside the US, it is mostly the current price that is taken as the strike price. When these options are offered, all details are disclosed to the traders. The details include the payout, strike price, expiry, and risks involved. These details are crucial for a trader to decide on his call or put option.
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