Binary Option Abstraction

Abstract of Binary Option Trade

There are many ways to consider and explain what a binary option is, however, an abstract image as the one attached does little in fact with how binary options actually look like. This abstract rendition created by an artist is tantamount to how a binary options appears in the brain, although not based on any science or facts.

It's 10:00 AM - do you know where your binary options are?

I have been asked time and again about the same question, what are binary options. This is not a difficult question to answer and I'd recommend that you simply look it up online to learn the details. The overall concept with a binary option is that it is a financial instrument that allows you to buy an "option" that has a binary decisional aspect to it. You can choose if the asset will do this-or-that and wager the investment on you best guess or estimation. While some people have a difficult time fully understanding what are binary options, it is critical to play it to fully understand, and that is what I recommend you do to learn about it further.

Circles of Confusion - Drawing by binary options trader

Confusion De Circles
When you think of circles of confusion, the typical response are those circles that you see when someone photographs using a telephoto lens and the background is just a mess of circles that are objects beyond the field of view. These circles of confusion where drawn while I was trading binary options. The problem with trading binary options online is that you can easily get fixated on the elements of the trade that are beyond your control, and the best course of action at that point is to provide your mind with a level of distraction that allows you to still monitor your trades, but does not require your 100% undivided attention.

Goofy looking binary options trading art

I found this artwork in an article about binary options trading
and just thought that it was hilariously funny in a goofy sort of way. This kind of art you just don't see anymore and its very funny that some guy who is trading binary options is also making this art to pass the time. Cool!

Binary Trading is WAY easier now than it might have been in the 1970's

You can download this cartoon of a 1970's style binary options trader at the following links:

• 1970's style binary options trader on Flickr
• Binary Options Trader with full 70's style hair and mustache on Panoramio
• Binary trader with old-school walkie talkie on Red Bubble
• Guy trading binary options on 70's size walkie talkie on Twitpic
• Photobucket hosted pic of 70's style binary options trader

When will gold pop already?

The higher gold climbs the more intense the debate between bulls and bears, those who think the yellow metal has a long way to run and those who say this is a giant bubble that is going to pop, and soon.Here are five reasons the bears are calling the current run of gold -- up 27 percent since Jan. 1 -- a bubble, and thus something to avoid.

1. Basic economics. The World Gold Council in a recent study said that in the second quarter total global demand for gold declined 17 percent, on a year-over-year basis. But despite that decline the price of gold rose about 25 percent. At some point supply and demand have to come back into balance, say the bears, and when they do it would be best to be out of gold.

2. If it looks like a bubble ... "People believe that gold is a hedge against uncertain times. In the long run, gold prices have kept pace with inflation. People are flocking to it", says Lloyd Thomas, an economics professor at Kansas State University. "But in 2000 the price of gold was $300 an ounce. It has gone up six-fold since then, and it might go up higher than what it is right now. It's gone up too fast -- it's a bubble." 

Thomas compares the current gold market to the U.S. housing market. People believed, as they believe now for gold, that the housing prices would continue to increase. But ultimately, they fell more than 30 percent in most 
American cities.


"The same thing could happen to gold; it's not risk-free. In the last 10 years it's gone up 17 percent a year, but the price of things we purchase has only gone up 3 percent a year. That's unsustainable. It's my own opinion that gold prices will collapse -- I just don't know when", he says.

3. Soros has left the building. Billionaire George Soros as well as Eric Mindich cut their holdings in the SPDR Gold Trust, an exchange-traded fund, in the second quarter as prices rallied. You may not understand algorithms, econometrics or 200-day moving averages, but almost anyone can imitate winners.
Major professional money managers are also starting to get worried. Wells Fargo is warning its clients, including wealthy ones, that gold is grossly overbought, a "bubble that is poised to burst." Said Wells Fargo analyst Dean Junkans: "We have seen the economic damage" of past bubbles and "feel compelled to ring the warning bells."
"There could be substantial risk to gold once the fear that the world is coming to an end subsides," Junkans told Reuters in a telephone interview from Minneapolis. "We are worried about the downward risk."

4. Investor naivete. "Trees don't grow till heaven. I think buyers need to be beware we are in a 'caveat emptor' market," Jeffrey Rhodes, global head of precious metals at INTL FCStone, a brokerage, told Reuters.
"My problem is that people are buying gold and they don't understand why they are buying gold and that's a big problem and that is a classic symptom of a bubble," said Rhodes.

5. What is your pain tolerance? Even if you don't think gold is a bubble, it certainly is a bull market, and bull markets often end dirty and messy, and take years to recover from. Think the U.S. real estate collapse and all the attendant carnage that erupted in 2008 and still hasn't been repaired, among homeowners or bankers. The same could be said of property markets in Ireland and Great Britain.




Want to hedge against the Gold Standard? Try trading binary options.  


Thanks to the source for the article on Gold Ready To Pop

Top-Ten Funniest Explanation of What are Binary Options

Hysterical Binary Options Trader

List of Top-Ten Funniest Explanation of Binary Options

Binary options trading is the hottest thing since margin-investing and CDI's - except way more legitimate and totally legal. Not everyone is 100% sure what is a binary option or what it means to trade them. Below are the funniest explanation that we have gotten so far. Enjoy.





 

Top Ten Funniest Explanations of
What are Binary Options:
10) Stocks that perform magic by using confusing math.
9) Commodities that make you money when they loose money

8) Investment instrument that let you pry open the markets value
7) Piggy bank for those that have science degree in math.
6) It is the equivalent of Diet Coke for the investment community, all the fun and no calories.
5) It's that thing them investment-boys are doing these days.
4) I don't know, I can't even figure out how to use Facebook.
3) Is that trading stocks in Morse code?
2) Binary option is when a person trading stocks has to think like a computer.
1)Have no idea what it is, but sure have fun trading them.

Laughing Binary Options Trader

We'd like to thank this site for the top-ten list of funny explanations for What Are Binary Options


trade, online, top ten, funny, hilarious

NHS faces growing financial pressure, how it effect GBP

by 99binaryoptions on August 11, 2011

The NHS has an uncertain future. What does that have an effect on the Great British Pound (GBP) and other currency markets. Keep these

Sell, Sell Sell 10-4 Charlie

details in mind when trading currency or placing positions on when trading binary options online.  The main thing to remember is that the uncertainty means that it can rally one day, or dive the next, however, elements like the trading volume and speculation buying can help the stats go awry in regards to where the market really stands.
Here is the article, you can read it in full at this link    Thanks to Binary Options Blog for posting this and sharing.

Audit Commission finds NHS made £4.3bn of efficiency savings last year but financial challenges are increasing
Most NHS organisations have made good progress in cutting costs to reach the £20bn savings required of them, but they face growing financial pressure, according to the Audit Commission.
In its report on the 2010-11 financial accounts of primary care trusts (PCTs), NHS trusts and strategic health authorities, the commission says that, assuming there is no double counting, efficiency savings totalled £4.3bn for the year.
PCTs reported savings of £1.9bn and NHS trusts reported savings of £1.2bn. These figures are equival
ent to 1.9% of PCTs’ gross operating costs and 4.3% in the case of NHS trusts. Regulator Monitor reported that the percentage for foundations trusts was slightly lower at 3.9%, which equates to £1.2bn.
The NHS in England needs to save an average of £5bn, equivalent to about 5% of their budgets, every year until 2015 to release £20bn of efficiency savings.
The document warns that financial pressure is increasing. Nearly 25% of the money saved so far came from one-off or non-recurrent savings, mostly improving clinical productivity and reducing workforce costs.
In addition, the need to deliver high-quality services without the funding growth of the recent past will have an impact. In 2010-11 PCTs received average cash funding increases of 5.5%, but in 2011-12 this is only 2.2%.
The document says NHS organisations will require determined effort and strong leadership to make further efficiency savings, and to continue to do so for four years.
Overall, the commission found that the financial performance of the NHS continues to be good, and that organisations reported a surplus of £1.5bn, or some 1.5% of NHS resources. Only nine out of 276 organisations failed to balance their books.
NHS Confederation deputy director of policy Jo Webber said many NHS leaders have got their organisations on a strong financial footing, but are worried that “this might be the calm before the storm”.

Some common info on what are binary options:

Binary option (From Wikipedia)

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-styleoptions.
For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.
In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function.
Click here to read the full Wikipedia article on Binary Options




A binary option is a fixed return option because there are only 2 possible outcomes which are fully realized at the onset of the contract
A binary option is a contract which gives the buyer (known as the owner) the right, but not the obligation, to buy an underlying asset at a fixed price within a specified time frame.
The items being traded are known as underlying assets and they could be a range of products: currencies (e.g. USD/JPY), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100). The fixed price at which the owner buys or sells at, is known as the strike price.
When trading binary options, the buyer of the option chooses whether he thinks the underlying asset will hit the strike price by the selected expiry time – this could be at the end of the nearest hour or the end of the day, week or month.
The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.

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Thank you to this source for the info on Binary Options