Binary options are good for beginners that want to get their feet wet, without worrying too much about all the jargon used in trading stocks. With binary options you either win or lose – there is no in between. The basic concept is that you buy a contract, either in the buy or sell mode [...]
Entries Tagged as 'fixed rate options'
Understanding Fixed Return Options (FROs)
May 13th, 2008 · 5 Comments · Fixed Return Options, Options 101
Fixed Return Options (FROs) are a new type of exotic options, however don’t let ‘exotic’ scare you – it doesn’t mean FROs are complicated. In fact they’re really simple, they are just a bit different from standard put and call options. FROs are binary options, meaning there are only 2 possible outcomes. They offer a [...]
Fixed Return Options Debut
May 6th, 2008 · No Comments · Fixed Return Options
I recently heard about a new product being offered on AMEX called the “FRO” or Fixed Return Options. Basically, these are binary options, or in other words there are 2 options at expiration. They offer a fixed return of $100 per contract. If you are in the money at expiration, you get $100. If you [...]
