About binary options
The origin of the word is the family name Van der Bursen, a Belgian banking company whose Bruges hotel was a meeting place for famous merchants in the 15th century. In the United States, the stock market began on Wall Street in New York City The stock exchange is a market for the trading of many securities and commodities, the most important of which are shares, futures contracts, oil contracts, currencies, gold and silver contracts, private and public bonds, an organized market for the exchange of securities and commodities, through which individuals buy and sell these securities. In the financial regulator and tight legal framework so as not to be lost each party's rights.
Options contracts and what is known as the deposit or Aloobescn
This agreement gives the holder the right (not the obligation) to buy a particular share at a specified price during a specified period (starting from one day and up to two and a half years). The price agreed between the parties is called the price target. The seller may not withdraw from the transaction as long as the value of the deposit is known as Premium. There are many branches of this trade, but they are concentrated in two terms: Call and is used to take profits from the stock in the case of its rise , And Put that is used to take profit from the stock in case of a decline E.
Source contracts Aloobescn
These contracts come from the shareholders. The owner of the share is entitled to sell the contracts of the guarantor or the father in the market of contracts, and allows him to sell one contract for every 100 shares, for example the owner of 1000 shares of Intel is entitled to sell 10 contracts, and each contract equals 100 shares "The contract is an indivisible unit," and is entitled to sell these contracts in the futures market, but is obliged to buy these contracts again (regardless of their price) before selling the shares that sold their contracts.
How is the deal between the buyer and seller?
The seller offers the stock for sale at a price that suits him and he accepts to receive a deposit in advance from the buyer is usually very simple, the buyer would prefer to pay a simple deposit and do not pay the full value in the hope that the share price in the future and thus entitled to three things:
To pay the rest of the amount to the seller before the end of the agreement and then sell shares in the market in cash and thus have made a profit somewhat acceptable.
To give up the deposit in a material amount to another person either profit or down and get out of the deal and returned this is the norm.
To attend the date of payment of the rest of the value of the borrower in this case the situation is as follows:
If the share price is high, the broker or the bank sells the shares on the market and pays the rest of the transaction to the seller and the surplus (the profit) is left in the buyer's account.
If the price of the shares is less than the transaction price, the shares are returned to the seller's portfolio and also retain the deposit received by the buyer so that the buyer has lost only the simple amount
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