When I'm asked if you can buy rare American coins, world gold coins, silver eagles, or bullion coins with a credit card, the simple answer is "yes". But there are only certain dealers or venues that will accept your card. So, it is possible to buy coins with a charge card, if you shop at the places which accept them.
As a general rule, online coin dealers are far more likely to accept credit cards than your local coin shop. The online sales almost always charge higher prices for those purchases than check or wire transfer.
Generally a local rare coins dealer only accepts cash for your purchases. This is a long standing tradition with them. Coin dealers will say they can only sell at the lowest prices with a cash payment. They give paper receipts, so it's not like they're trying to hide the transaction.
Many people buying US rare coins, world gold coins, or bullion coins want it at the lowest price available. This can't happen with what the credit card companies charge retailers for accepting them. As mentioned before, expect to pay more for your purchase, if you elect to use that means.
I think the local dealers are missing an opportunity to make extra sales when they don't allow you to buy rare American coins, world gold coins, or silver eagles, with a credit card. We are in an electronic money age and cash is being used as a medium of exchange less frequently anymore.
There are many online coin and bullion dealers that allow you to buy rare American coins with a charge card. If a credit card is all you have available, there are many dealers to choose from.
If you buy coins from the US mint, that's the only form of payment they accept. I regularly buy directly from the US mint using a credit card, and probably pay a higher price because of it.
Venues like Amazon and eBay/PayPal make it possible to buy gold coins and silver coins with a credit card. They accept ACH debits from a checking account for payment as well. I use both methods when making purchases online.
Whenever the topic comes up, I often respond with "do you really want make your rare US gold coins, world gold coins, or rare American coins purchase that way?" I can tell you from personal experience that is a way to lose control of your budget. It is way too easy to keep charging when you don't have the resources to repay.
Most local coin shops and coin shows only accept cash. That's good for me anyway. It helps keep spending under control. I've never had consumer debt on credit cards. I don't consider coin purchases to be consumer debt, because they usually either increase in value or stay the same, but rarely decrease substantially.
I've learned that credit card debt is all the same. Expensive. You may earn points from the purchase, but that doesn't come close to what you'll pay in double digit interest.
It is much better to buy with cash or at the very worst, a low interest loan. Avoid paying the double digit interest on your coins. Generally speaking, if you have to charge something, you can't afford it. Only get what you can afford.
You could end up losing the coin value of silver dollars or gold coin value to the interest on a credit card. Use a credit card only if you have to, and pay off the principle every month, if you do use one. Otherwise use a different way to purchase your coins.
Kamis, 30 November 2017
Selasa, 07 November 2017
What Is the Difference Between Regular Options and Binary Options?
Similarities
Both Traditional Options and Binary Options are forms of derivatives - their price derived from an assets value. They are essentially both contracts that give the trader the right, but not the obligation, to buy or sell an underlying asset - that can be stocks, currencies, indices, bonds and commodities - at a specific price on or before a certain date.
The asset is used both in Traditional Options and Binary Options trading exists solely as a proxy, as a benchmark for the option itself to determine whether the contract has expired in-the-money or out-of-the-money.
Differences
Pay Out
As with most investments the most important aspect to compare between binary options or digital options and traditional options is the payout.
In digital options trading the payout is predetermined at the onset of the contract and can be anywhere between 50 - 90% if the contract expires 'in-the-money'. In the case of a vanilla option, the payout is variable and the payout is dependent on the size of the assets movement once passed the strike price.
In traditional options, an investor pays per contract (i.e. pips). This means that the investor will profit or lose an amount depending on the number of pips difference between the expiry level and the strike price. This is unlike in binary options where the two outcomes, giving its Bi-nary nature, are fixed from the start.
Expiry Time
There is a notable difference in the expiry time between Traditional Options and Digital Options, although less so since Binary Options trading online exploded in 2008. Traditional options generally offer monthly or quarterly expiry times, whereas Binary Options have expiry times at hourly, daily, weekly and monthly points, allowing you to make a trade with just 5 - 15 minutes before the expiry time.
The short term multiple expiry times enable investors to make an instant profit on their digital options providing much more flexibility in their option investments.
Execution
The sale of a vanilla option can be executed at any point up to the expiry time. This is unlike the execution of a binary option which can only be exercised at the time of expiry.
An investor in a binary option must hold onto his option until the expiry date. He must therefore take more care when purchasing his options as he cannot sell them once they are purchased, unlike in traditional options where the investor can sell an option at any point before the expiry time, creating more flexibility.
Risk vs Reward
This is where the difference between Traditional Options and Binary Options really gets highlighted. In Binary options, an investor can never lose more than they invested and can even get a refund of up to 15% of their investment amount, even if a prediction finishes out of the money. The reward for such limited risk if the prediction finishes in the money, is less than that a traditional option can potentially offer, which can be from 0 - infinity. However, traditional options can be leveraged which although magnifies the rewards, greatly increases the risk.
It is the risk v reward factor that sees many new traders, with limited or no experience of trading the financial markets. Binary Options offer just simple yes/no investment decisions that can be made multiple times within a day and do not require the constant monitoring of markets over a number of days and weeks to decide whether or not they want to exercise their option to either buy or sell the asset. The rewards can be potentially much higher in traditional options but they can take considerably longer with the increased risk of the profit or loss being dependent on the swing in the movement, which coupled with leveraged trades, can mean losing much more than you invested.
Both Traditional Options and Binary Options are forms of derivatives - their price derived from an assets value. They are essentially both contracts that give the trader the right, but not the obligation, to buy or sell an underlying asset - that can be stocks, currencies, indices, bonds and commodities - at a specific price on or before a certain date.
The asset is used both in Traditional Options and Binary Options trading exists solely as a proxy, as a benchmark for the option itself to determine whether the contract has expired in-the-money or out-of-the-money.
Differences
Pay Out
As with most investments the most important aspect to compare between binary options or digital options and traditional options is the payout.
In digital options trading the payout is predetermined at the onset of the contract and can be anywhere between 50 - 90% if the contract expires 'in-the-money'. In the case of a vanilla option, the payout is variable and the payout is dependent on the size of the assets movement once passed the strike price.
In traditional options, an investor pays per contract (i.e. pips). This means that the investor will profit or lose an amount depending on the number of pips difference between the expiry level and the strike price. This is unlike in binary options where the two outcomes, giving its Bi-nary nature, are fixed from the start.
Expiry Time
There is a notable difference in the expiry time between Traditional Options and Digital Options, although less so since Binary Options trading online exploded in 2008. Traditional options generally offer monthly or quarterly expiry times, whereas Binary Options have expiry times at hourly, daily, weekly and monthly points, allowing you to make a trade with just 5 - 15 minutes before the expiry time.
The short term multiple expiry times enable investors to make an instant profit on their digital options providing much more flexibility in their option investments.
Execution
The sale of a vanilla option can be executed at any point up to the expiry time. This is unlike the execution of a binary option which can only be exercised at the time of expiry.
An investor in a binary option must hold onto his option until the expiry date. He must therefore take more care when purchasing his options as he cannot sell them once they are purchased, unlike in traditional options where the investor can sell an option at any point before the expiry time, creating more flexibility.
Risk vs Reward
This is where the difference between Traditional Options and Binary Options really gets highlighted. In Binary options, an investor can never lose more than they invested and can even get a refund of up to 15% of their investment amount, even if a prediction finishes out of the money. The reward for such limited risk if the prediction finishes in the money, is less than that a traditional option can potentially offer, which can be from 0 - infinity. However, traditional options can be leveraged which although magnifies the rewards, greatly increases the risk.
It is the risk v reward factor that sees many new traders, with limited or no experience of trading the financial markets. Binary Options offer just simple yes/no investment decisions that can be made multiple times within a day and do not require the constant monitoring of markets over a number of days and weeks to decide whether or not they want to exercise their option to either buy or sell the asset. The rewards can be potentially much higher in traditional options but they can take considerably longer with the increased risk of the profit or loss being dependent on the swing in the movement, which coupled with leveraged trades, can mean losing much more than you invested.
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