In financial terms there are two principle types of Options
These may be exercised at any time between the date of purchase and the expiry date. In Options Domination we are trading one currency’s movement against another within a given time period. These, then are American Options. Most options traded on an exchange are of this type.
These differ from American Options in that they may only be exercised at their expiry date.
In binary options trading the location of the option has nothing to do with geographic location.
All the Options traded in Options Domination are exercised within a relatively short time, i.e. within a few hours or minutes. But there are options available with more appeal to the long term investor. They have the same characteristics as normal options but the expiry date may be up to three years. These are called Long Term Equity AnticiPation Security (LEAPS).
Although they are not available on all shares, most of the widely held issues have a LEAPS option.
Vanilla or Exotic?
The simple “calls” and “puts” that we use in Options Domination are sometimes referred to as “plain vanilla options”. Although Options may seem complex at first, vanilla options are in reality very simple. See: What Are DS Options?
However there are many variations available, known as Exotic Options, with variations on the payment profiles and other special features that are used to meet the specific needs of investors. We are not interested in these Exotics within the realms of Options Domination trading.
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