Fischer Black - Co-Founder of the formulas for Binary Options Trading

While binary options trading is extremely easy to use and fairly simple when compared to other forms of investment and financial instruments, it is rather complex when you view it internally. Fischer Black (Pictured LEFT) and Myron Scholes developed and designed the Black-Scholes valuation formula which both outlines the needed mathematics, and also a list of world conditions that make binary options trading possible.

When you trade a binary option online, you are actually placing your investment on a set of mathematical equations that both figure out the price for the option, along with the risk, closeable price, and many other factors. Investment houses are only willing to permit such a trade because they can take comfort that their pricing will cover their "friction" costs for handling that trade. These types of failsafes and regulations are based on the black-sholes valuation formulas.

So think of this guy next time you are trading binary options online.