What Are Binary Options & How Do I Trade Them?
Binary options are a new type of lucrative trading in which the trader makes a prediction on how a commodity/stock will move: Up or Down. Sounds simple right? Well that’s because it is!
However, to make a lot of money in binary options on a consistent basis your going to need to follow a strategy which gets you the highest returns but keeps your risk low.
Binary options are classed as exotic options, yet binaries are extremely simple to use and understand in terms of functionality. Providing access to stocks, indexes, commodities and foreign exchange, the options can also be called a fixed-return option (or FRO). This is because the option has an expiry date/time and also what is called a strike price. If a trader wagers correctly on the direction of the market and the price at the time of expiry is on the correct side of the strike price, the trader is paid a fixed return regardless of how much the instrument moved. A trader who wagers incorrectly on the direction of the market ends up losing a fixed amount of her investment or all of it.
Why Trade Binary Options?
So you can make money of course! But is it really that simple? Well nothing in this world ever is! But binary options are extremely lucrative and if you work hard you may make 100s or even 1000s a day! That is what separates it from futures, forex and traditional trading! The risk is high, but the returns are massive, sometimes up to 500% or even over 700%. Can you imagine investing $200 dollars and making 500%, that is $1200! Now imagine if you were doing that and more everyday of the week! You will live the dream!
Will I Lose Money?
If you are afraid to lose a bit of money and learn the ins and outs of trading high return options then this is not the field for you. In order to make money you are going to have to spend some and there is a chance you could lose money in the beginning. However, if you are willing to put in some time and effort then the returns could be astronomical! I personally know some people who have made an absolute fortune (6 zeros!) in the space of a few months trading binary options. They are still making money!
How Do I Get Started?
Just go to one of our recommended brokers and open up an account. To start trading you are going to need to deposit a minimum of 5$ to $250, however many brokers will allow you to open up a demo account to test your skills for free. If you want to hone your trading skills without spending money then this is a great way to start!
Since mid-2008 binary options websites called binary option trading platforms have been offering a simplified version of exchange-traded binary options. It is estimated that around 100 – 150 such platforms (including white label products) have been in operation as of January 2012, offering options on some 125 underlying assets.
Binary option trading is gradually gaining more ground in the place of main-stream trading. Unlike its conventional version the place where a purchaser must evaluate therefore several things before participating in business, it’s easy and nearly everyone can participate in it. This simplicity causes it to be well suited for people seeking to invest some cash available on the market even when an individual doesn’t have substantial information.