This page contains a Flash digital edition of a book.
the reward is tightly linked to the magnitude of the move made by the asset a trader is invested in, binary options offer a fixed reward which only requires passing a predetermined threshold to materialise. As long as the threshold is passed even by an infinitesimal value the entire reward is collected. Tis adds to the reliability of investing in binary options as compared with other investment instruments.”


Ravit Friedberg


“brokers that have an existing trading operation will need to know how binary options will work with their infrastructure. MarketsPulse enterprise technology is made for that situation.”


traders to take advantage of the market’s constant changes, and get results in a relatively short time, based on skill and basic knowledge,” adds Noier.


High rewards, controlled risk


A second plus point for binary options is their high reward potential, claims Peretz: “Binary options offer unrivalled reward potential with a 60% to 85% yield range,” continues Peretz. “Investment yield is further intensified when considering the short time horizon of the investment. In contrast to traditional options, or other financial instruments where


52 | INSTITUTIONAL FX SERVICES - THE BROKERS HANDBOOK 2012/2013


Binary options have many different variations, but they are all based on the ‘over’ and ‘under’ principle, continues Levy. She states that this product has gained in usage amongst retail traders mainly due to the simplicity of the option, and also because of the attractive payouts that are possible in a short amount of time. Also, traders are drawn to the limited risk factor, as they knows from the outset how much they stands to lose.


“Binary options are also issued


around the clock, 24/7, so the accessibility factor and ability to trade when markets are closed also gains the option popularity,” Levy comments. “Investors can also use binary options as a hedging tool. Te more volatile the market, the more dynamic and exciting binary options are, especially with features such as 60 seconds that allow for expiries under one minute.”


Peretz states that the third point in binary options’ favour is they offer a controlled risk environment compared to other financial instruments. “As with the reward side of binary options, the potential loss is also fixed and predetermined,” he claims. Tis means traders are protected from the pitfalls of infinite losses, which together with undisciplined trading behaviour that is so integral to human nature, can ravage a trader’s portfolio. Tis controlled risk environment adds an important level of safety to binary options trading.”


Product Focus


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124