Binary options trading has been the most popular form of trading since it was introduced on the Chicago Board Options Exchange in the US in 2008. It offers people with little or no financial background the opportunity to make incredible profits in very short periods of time without any training whatsoever.
Here’s how it works: A binary option is a financial contract that enables a trader to earn money by predicting if the value of a financial asset – like Gold or the Euro-US dollar exchange rate, for example – will go Up or Down in the immediate future.
If you select the correct direction, you make money – It’s that simple.
Since there is only one decision to make with only two possible outcomes: Up or Down, your chances to make money are 50-50 at worst – and you can increase your chances of making money to closer to 90% with the help of some basic option trading strategies which can be found here.
Binary options are offered by online financial brokerages that issue them on: 1.) the price of shares of stock from large companies like Coca-Cola; 2.) the price of natural resources (called “commodities”) like Gold and Oil; 3.) the value of exchange rates for major currencies like the US dollar and the Euro, and; 4.) the value of stock market indices like the NASDAQ stock market in the US.
Here’s how to start: If you believe the price of Gold, for example, will increase in the immediate future, you should invest in a “call” binary option on Gold. In order to do so, you simply select your asset – in this case: Gold. Then you select the direction you think the price of Gold will move – in this case: Up. Finally, select the investment amount and execute your trade. If the price of Gold is higher at the time your binary option expires than it was when you invested in it, you’ve made money.
On the other hand, if you believe the value of Gold will decrease in the immediate future, you should invest in “put” binary option on Gold. In order to do so, you simply select your asset – in this case: Gold. Select the direction you think the value of Gold will move – in this case: Down. Select the investment amount and execute your trade. If the value of Gold is lower at the time your binary option expires than it was when you invested in it, you’ve made money.
Payouts on successful binary option investments can go up to 85% so a successful trade can yield a return of hundreds of dollars in as little as 15 minutes time.
Getting started investing in binary options is as simple as getting signed up with an online broker that offers binary options trading.
Investors should keep in mind that, like any investment opportunity, there is risk involved. Investments in binary options do not guarantee a profit and come with the risk of losing the initial investment. While extensive research is not necessary, it may be helpful to conduct some basic research into the financial markets in order to increase your likelihood of success with binary options trading in general.