Wednesday, July 4, 2012

Binary Options: An exciting investment

Often dreamt of how you can start a worthwhile investment- whether for the short or long term. But you never knew how? The secret to accomplishing this dream is trading binary options. Even big investors, who capitalize in the stock market, have begun trading binary options – since there is minimal loss involved. With binary options, the system is strategically designed to allow a trader to turn a small investment into a high profit within a short period of time. If making 70% return sounds appealing to you, than binary options is the way to go!

There is no middle ground with binary options, you either win or lose. Basically, you purchase a contract at either the Call or Put Option and predict if your asset (such as indices, commodities, stocks, or currency pairs) will either fall or rise within a certain period of time that you choose. If your prediction was right or “in-the-money” you win and if your prediction was incorrect or “out-of-the-money” than you lose.

How binary options works

The “contract” you are purchasing at the beginning of your trade, with most binary options trading platforms, is fixed price such as $100, $150, etc. If you invest $100 in an option, and if your prediction is correct, then you will receive $100 for the option plus an additional 60-70% offered by the binary option platform you are a part of. However, if your prediction is incorrect then you lose your investment.

Trading Binary Options Exhibit A:

The asset you choose to invest in is gold

Strike price for purchasing (Call Option) is at 30000
Strike price for selling (Put Option) is at 7000

By judging the market and the strike prices you estimate in which direction you think the stock will go. So, let’s say you purchase the Call Option. The last strike price for calls was at 20000 and now it is at 30000. When you purchase you are estimating that the price of gold will be at 30000 or more on the date of expiration. If you are correct, you will then receive the set amount of money that you invested in plus 60-70% per contract. If you are incorrect, and the price of gold drops back down, you will lose all money invested.

Binary Options benefits to the investor

It is no wonder why binary options have become a growing trend in the financial market considering the advantages it provides investors. This powerful investment tool is cost efficient, low risk, has the potential for high return and flexible.

The most incredible advantage of binary options is the opportunity for the investor to make a quick profit in a short time period such as one hour. Who could imagine you could make anywhere between 60-70% in such a short time! Investors have the ability to choose a variety of assets and trade on financial markets around the world.

What big investors love about trading binary options is that they may trade whatever amount they would like with no limitations. Most importantly, most binary options platforms enable the trader to choose the time period they would like their trade to last- an hour, day, week and/or month. This allows the investor to not only choose an asset they feel most comfortable with, but also give them time to make the best prediction of their trade so they are “in-the-money.”

Most importantly, investors are flocking to binary options because it is a fun and exciting method for traders to make high profits. Now what are you waiting for? Start making money with binary options.

1 comment:

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