What are binary options? They are the latest and most profitable financial instrument to conquer the global markets in the past few years. Traders from around the globe are investing in binary options to add liquidity to their portfolios safely and with minimal risk. What is binary trading? Binary combine the analytical aspects of day trading with the lucrative features of options trading so that traders can maximize their profits while minimally investing their time and capital. Quite simply, a binary options is a financial tool that allows you to predict if the market price of an asset will rise or fall within a certain time period. The period of expiry can range from one minute to a number of days, depending on your choice.
Binary options trading – is it easy?
One of the primary reasons for the proliferation of binary options is the ease that anyone can trade them. Because of the essential choice between one of two options, the systems used to trade binary options are designed to make the investing process as easy as possible.
When trading binary options, there are three essential steps to trade, that’s it! Simply decide on an asset, then decide on the direction of the market price, and enter the amount you wish to invest, that’s it!
Can I profit with binary options?
That depends – have you checked the news in the last week? Do you know about the latest economic news? Due to their simple nature, binary options are very reactive to news cycles and market fluctuations which makes them very profitable. Do you think Facebook will reach $50/share in the next 15 minutes? If your forecast is correct, you can earn up to 89% return on your investment.
The profit potential of binary options is one of the main reasons for the explosion in popularity of binary options.
The term ‘Binary Option’ – where does it come from?
Binary options get their name because there are only two possible results of your investment: either your prediction is correct or it is not. Other names are sometimes used around the industry such as Fixed Return Options (FRO) or Digital Options (DO); both terms are used interchangeably for binary options. These terms are generally used when the speaker wishes to point to the online and static nature of binary options.
How do I trade binary options?
Now that we know what binary options are, the next natural question is: How do I trade binary options? Trading binary options is simple, quick, and profitable. Registering for an account with 24option is free and takes less than one minute!
Since binary options are based upon a prediction of an asset’s market price it is usually a good idea to familiarize yourself with at least one asset so that you feel comfortable making a prediction on its market price.
Once you are familiar with an asset, all you need to do is simply choose that asset on the 24option platform and decide in which direction you think the market price will go: up or down. After you have made your prediction, enter the amount you want to invest. Once you enter the amount you wish to invest (but before you confirm the investment) the exact return on the binary option will be available. This aspect of binary option trading is very attractive to all types of investors since you know in advance exactly how much you can earn from every investment. You no longer need to guess how much you can earn from your investments. Now you control exactly how much you invest and how much you can earn. Once you’ve decided how much you want to invest, simply click the ‘Buy’ button and you’ve invested in a binary option! Check the Trade Binary Options page for more tips and information on signing up.
Why are traders flocking to binary options?
Binary options have exploded in popularity because of the ease that one can invest in binary options and the comfort that traders receive by knowing the exact results of a successful investment. That knowledge allows for precise capital management of your trading portfolio.
Traders love binary options because they are so easy to trade. Gone are the complicated systems of trading stocks or commodities and instead they have been replaced with the simplicity of binary options trading: just click and invest! From the comfort of your home or through your mobile phone, binary options trading is simple, quick and very lucrative.