Binary stocks options

From Binary Options Trading Wiki

Traders speculating within the equity market is arguably the most common form of trading. Perhaps this is because there are so many options (lots of different businesses) but equity trading is the most transparent asset especially when there is access to financial reports. Stocks is equity in specific companies also known as share trading, the difference of index trading is that this is a collection of different companies and the trader is trading the performance of them collectively. Stock binary options is using binary options to take a view on the performance of a specific company. For example you might have a feeling that google's value will rise possibly stemming from an M&A rumor or on reflection of recent financial reports. Therefore you will buy google stocks by taking a call option, alternatively you would make a put option if you felt the value was going to drop. When using binary options the trader will most likely not be entitled to voting rights or to dividend payments, however the risk and reward is predetermined and the trade doesn't have to be managed.

Binary options are also traded on: Currencies, Indices and Commodities.