Derivatives with more complex standard European or American call options and put options are sometimes called exotic options. Most new options are traded over the counter. They are products designed by financial institutions to meet special market needs. Sometimes they are attached to the bonds issued to increase their appeal to the market. Some financial institutions are very active in promoting new options, and they are prepared to quote almost any transaction proposed by customers.

Binary option

Binary options, also known as digital option and fixed income option, is one of the simplest financial transactions. There are only two possible outcomes when binary options expires. According to whether the closing price of the underlying assets is lower or higher than the strike price within a specific time (such as the next hour, day, week, etc.), whether to make a profit or not is determined. ). If the trend of the underlying assets meets the pre-determined starting conditions, binary options traders will gain a fixed amount of income, otherwise they will lose a fixed amount of investment, that is, fixed income and risk.

An outstanding feature and investment advantage of binary options is that only when the maturity price of options is higher than the exercise price at maturity (even if it fluctuates by a penny) can it obtain high profits. Therefore, even in the period of market depression, binary options will bring considerable investment returns to investors. On the contrary, if you buy financial products such as stocks or foreign exchange, you need to have large market fluctuations to get a positive return on investment.

Binary options is not an option in the traditional sense, because binary options is different from the original trading tool, and it cannot give you the right to buy or sell the underlying assets. Instead, you are entitled to a fixed return (usually between 65%-8 1%).

Binary options trade

The execution of the binary options transaction is entirely web-based. Investors can use online binary options trading platforms, such as Meetrader, anyoption, fx77option, webitrader binary options, etc. And it can be realized by all novices and veterans.

market prospect

With the development of online trading platforms and tools, online binary options trading has become popular. Binary options has become popular in Europe, America, the Middle East, Japan and other regions because of its short trading time, various types of transactions, simple operation, convenience and flexibility, and stable risk and return.

Compared with the European market, China market is completely underdeveloped, and the huge development potential of China market has not been fully demonstrated. Research shows that the international market is accelerating to enter China, and more and more people in China are interested in online transactions.

Of course, there are still many challenges in entering the China market. First of all, brokers must use local payment methods and very powerful "anti-fraud" means, and it is not easy to develop the local market. However, with the development of China market, some binary options-related websites appeared one after another, and some large binary options companies, such as webitrader binary options, also started to develop binary options market in China, and integrated the payment method of UnionPay. The lower entry threshold also facilitates the participation of more investors.

Packaging options

Package is a combination of standard European call option, standard European put option, forward contract, cash and the underlying asset itself.

Non-standard American option

Standard American options can be exercised at any time during the validity period, and the exercise price remains unchanged. In fact, traded American options do not always have these standard characteristics. There is a nonstandard American option called Bermuda option. In this option, the advance line is limited to a specific date within the validity period of the option. For example, American reciprocal options can only be exercised on a specified day.

Forward start option

A forward start option is an option that pays the option fee but starts at some time in the future. They are sometimes used to reward employees. Usually, choose the appropriate option terms, so that the option is at parity at the beginning.

Compound option

Compound option is an option among options. There are four main types of compound options: call option, put option of call option, call option of put option and put option of put option. Compound options have two strike prices and two expiration dates.

Optional option

As you wish, it has the following characteristics: after a certain period, the holder can choose an option, either a call option or a put option.

Currency option

Bitcoin option, namely bitcoin index option, refers to the right of option buyer to buy or sell the subject matter based on bitcoin index at a certain price in the future by paying option fee to option seller.