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What’s the story with binary options?

Binary options are a relatively new form of online investing first introduced to the world in 2008. The idea is a development of what was known in earlier days as OTC options, or over the counter options. These options were traditionally traded when a client would go to his broker and physically purchase an option on some financial asset. Nowadays,  with internet access readily available to almost everywhere, trading online digital options has become an easy and profitable way of investment.

Binary options are a risky type of investment whose good side is that this kind of investment has the advantage of offering the possibility of filling the investor's pocket within a matter of minutes. It’s all a matter of prediction:  when coming to trade, the investor should carefully make the choice of his desired tradable asset and predict whether its price will rise or fall, purchasing a Call or Put option in accordance with his prediction. A Call option would be purchased for a prediction of a price incline whereas a prediction for a price decline will lead to purchasing a Put option. The beauty of this form of trading is that traders can gain up to 95% within minutes and up to 500% within longer trading intervals.

Binary options trading is made over an online platform which is provided by an online brokerage firm. The broker is in charge of connecting the buyer and the seller and will be the sole provider of all the of your investors' requirements,  including monetary deposits and withdrawals, actual trading, providing online assistance, trading strategies and more. Choosing a broker is not such an easy task as there are many brokers out there. A good source of information about how to choose a broker is www.whatsbinaryoptions.com.  This portal provides comprehensive information about binary options trading and is a good place to visit prior to choosing your broker.

Most platforms are very similar and easy to use. They offer different types of binary options with different expiry times and different profit opportunities. The most common type of option is the classic binary in which traders predict whether the price will rise or fall offering them high payouts with very short expiry times. At first, options were offered at time intervals of 15 minutes and onwards but the latest trend is 30 to 60 seconds options, this means the results are almost instant and traders can make an average profit of 71% within the minute. One more type is called one touch options; traders are asked to predict if the traded asset will reach an expiry rate (certain price) prior to the options expiry time. The trader will be in the profit zone if the assets price will just touch the predicted price at any stage prior to expiry time. Traders can cash immediately.

There are many ways to trade binary options. What is common to all kinds of trade is the simplicity of carrying out the trade and the fact that any option, whether call or put, is dependent solely on the movement of the chosen asset. All that is required for the trader to come out with a profit is that he predict the right direction of his chosen asset. If the market is bullish, the trader will take out a call option, and in a bullish market, when he predicts a drop in price, he will take out a put option. This is the origin of the term binary options which comes from the Latin bi - meaning two. Any contract can end in only one of two ways - up or down.

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