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Monthly Archive for August, 2009Page 2 of 2

Binary Option

Published
by
admin
on August 12, 2009
in News and events
.

Unlike the other options available for trading, the Binary Options in finance imply a payoff method, where you either get a fixed amount of an asset or nothing at all. Just as in computer jargon, the binary number 0 and 1 imply signify True value or False value, also interpreted as a win/loss situation, similarly the Binary options only provide you with simply two options making you win or lose a prefixed amount when you trade in them.

 

So what is this Binary Option Trade all about? Well, in Binary Option trade it is not only important to estimate the quantum of increase or decrease that the underlying instrument is likely to witness, but it is equally important to correctly predict the general direction, whether up or down that the instrument is likely to move in. Therefore, you can enter a call option if you predict a rise in the price of the underlying instrument. Conversely, you can enter a put option if you predict a fall in the price of the underlying instrument.

 

 

Also, each Binary option has a contract price and an expiration date attached to it. In this trade, the price of the underlying instrument on the expiration date is compared to underlying contract price to help determine if the price is higher or lower than the contract price.

 

It is also important to remember that not all instruments are available for binary option trading. To select a binary option trading instrument, check such listed options in the exchange. Also, remember that binary options are always settled in cash and do not involve exchange of any instrument.

Financial competitions

Published
by
admin
on August 12, 2009
in News and events
.

Financial competitions are contests in which players place trades on financial instruments, but instead of playing against the markets they play against each other. 

 

History of Financial Competitions

 

The origin of financial competitions can be traced to the 1970’s when the IG Index was created to help people bet on the future price rise of gold. This initiative in financial betting began in a very small way with people meeting in an office to place bets. Towards the end of the 70’s and in the beginning of the 80’s financial betting activities increased and brokers began to handle various types of financial betting activities.  In the 90’s, technology aided betting activities and they could be done through online tools, which led to the beginning of financial games and financial competitions.

 

Financial Competitions today

 

There are many internet sites that are dedicated to offering certain types of financial competitions.    

 

Players in financial competitions make use of the real market for their gaming actions. The winner of a financial competition is the player with the maximum credits or players who have reach beyond a certain point and who are as a result eligible to go to the next round in the competition. The winner is awarded a cash prize.

 

Guidelines for entering a Financial Competition

 

Players entering a financial competition have to register as a site member and meet the necessary eligibility criteria. A real account has to be opened with some money for playing. They will have to use the software platform offered at the site to carry out their financial gaming activities.

 

Each site that offers opportunity for playing financial competition will have a format for their games. Since Financial Competition sites differ in their competition formats, players have to make themselves aware of this before entering the competition.

 

Types of Financial Competitions

 

There are many types of financial competitions such as stock trading competition, forex competition, commodities competitions and much more. Players do not have to own financial instruments to enter such competitions. Financial competition can also be differentiated by their game formats.

 

Typical Features of Financial Competitions

 

Players entering into financial competition have to register at sites that offer such contests. They must specify the competition that they wish to enter and pay the fees required to enter. Usually, a specified number of players must enter the contest before it can begin. A financial competition can include just one round or two rounds or even three rounds.

 

Financial competitions are based on real market scenarios. Players are offered a software platform through which they can place their bets and they have a virtual portfolio for carrying out their betting activities. There is no need to own the financial instruments on which bets are to be placed. The duration of a financial competition can be something small such as a couple of hours to even three months.

 

The competition is open for players to trade for 24 hours a day, when it extends for more than one day’s time. Players can play from any location using their online account. The player with the maximum credit wins the competition. In case of competitions with more than one round, qualifying players with a certain credit level in their account will move to the next level of play. Cash prizes are awarded to the winner.