Options by definition is a type of
arbitrage transaction which has specific terms and conditions that a
trader may fulfill in order to gain profit. It's like making an
agreement with a person and if in case you managed to honor what you
had agreed upon, you would be given a reward.
InstaForex offers this kind of
transaction in a more comfortable and easier way. It is called Binary
Intraday Options service.
Binary Intraday Options service is an
option service which is only offered by InstaForex. Intraday offers
short and long positions on 11 instruments with a minimum option
value of 1 USD and a maximum value of 1000 USD. If in case the trader
fulfills terms and conditions of the contract, the opening price is
lower or higher than the closing price, he/she will gain profit.
Intraday Option to Increase
This kind of option is conducted by
predicting that an increase will happen on the currency rate between
two time periods within a day. For example, you predicted that an
increases will take place between 1200 and 1700 and you waged for a
100 bucks. If the closing rate is higher than the opening rate, value
increases, then you will gain a profit
Intraday Option to Decrease
This kind of option is conducted by
predicting that a decrease will occur on the currency rate between
two time periods within a day. For example, you predicted that there
will be a decrease between 1400 and 1600 and you waged for a 500
bucks. If the closing rate is lower than the opening rate, value
decreases, then you will gain a profit
Profit
How to calculate profit? Simple. Just
multiply the amount that you waged in to the price-to-earnings ratio,
which is 1.8, then subtract it to you wager.
Profit = Amount * 1.8
Profit = 100 USD * 1.8 – 100
Profit = 180 – 100
Net profit = 80 USD
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