For some time now, investors have been reaching for yield as interest rates remain low. Trying to cope with this low yield environment, investors are taking on more risk by seeking high yield bonds and structured products among others. In the case of structured products, I often wonder whether investors fully understand the underlying instruments. Nobody wants a repeat of the credit crisis where some investors invested in sub-prime CDOs without fully understanding the underlying instruments/structures of the security.

We all know the basic premise, which is the more yield received, the more risk taken. Binary options can be used to create structured products. Understanding the underlying derivatives is a big asset in comprehending the risk, which most folks simply may not take the time or initiative to do. But, in my opinion, this is time well invested (if you’ll forgive the pun). There are many resources available to aid in understanding, including articles to courses written and presented by our experts.

GFMI’s Newest Article Discusses Binary Options

To aid in understanding, GFMI is proud to present our newest article, which deals with and discusses Binary Options. Our featured author, Billy Viljoen, is a risk consultant who presents binary options in a straightforward manner. Billy compares these products to the luck (or risk) taken while playing roulette, which puts the complexities into an easy-to grasp manner and makes the topic more accessible for the average reader. We hope you enjoy his article.

Options Courses to Expand your Knowledge

If you or your team need additional information, understanding, and application of options, including binary options, GFMI would be pleased to deliver a customized course to you. Our experts, such as Billy, work with you to ensure that our courses meet your specific requirements. Download our Full Course List for more information, or visit one of our course description pages:

Author

  • Ken Kapner

    Ken Kapner, CEO and President, started Global Financial Markets Institute, Inc. (GFMI) a NASBA certified financial learning and consulting boutique, in 1998. For over two decades, Ken has designed, developed and delivered custom instructor led training courses for a variety of clients including most Federal Government Regulators, Asset Managers, Banks, and Insurance Companies as well as a variety of support functions for these clients. Ken is well-versed in most aspects of the Capital Markets. His specific areas of expertise include derivative products, risk management, foreign exchange, fixed income, structured finance, and portfolio management.

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