ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Binary Options Explained.

Updated on December 9, 2014

Binary Options

Binary Option
Binary Option

What are Binary Options?

Binary Options are a type of contract that give the trader right to buy/sell any asset at an certain price for a specific period of time. In Binary Options payoff can take only two possible outcomes either an fixed percentage of your investment (usually between 70%-90%) or nothing. In Binary Options traders have to predict the future direction of a trade among these two choices call/up or put/down and after an fixed expiry time if the prediction is correct then the trader receives a high percentage on their investment but if the prediction is wrong then the trader losses all his investment. Since market is influenced by a lot of factors therefore there can't be any guarantee about the future condition of the asset in the market and thus Binary Options are huge risk and to be successful with them trader must have lot of knowledge about current market condition of the asset.

How Binary Options Work?

Unlike other trading sites the payout in Binary Options does not depend upon the percentage of increment and decrements in the value of asset and the trader does not have the option to close the trade whenever they want. In Binary Options the trader gets an fixed percentage of the investment on winning trades and losses all investment on lost trades all he has to do is to predict the direction of the value of asset in a fixed expiry time. In other trading sites the trader don't know how much he will be winning or losing in the trade but in Binary Options the thing are different trader knows the amount of money he will be paid if the trade is a win or loss. For example- If a trader trades a call option with a $500 investment in EUR/USD for 15 minutes with an 80% payout then if the value of EUR/USD increased (no matter how much or how little) at the end of 15 minutes then the trader will get $400 extra and will have total of $500+$400= $900 in his account but if the value of EUR/USD decreased at the expiry time then the trader will loss his $500 investment.

How Binary Options Make Money?

There are a lot of Binary Options on the internet with very attractive features and lot of staff so it is certain that they also make in some manner. If you noticed in the above paragraphs that on winning trade the payout is usually 80% but on losing trade the payout is 0% and always keep in mind that your loss is someone else win and vice verse. So if you are losing $500 on trade then there is certainly someone else who is winning $400 on that trade because they invested in the other direction but there is $100 missing which are taken away by Binary options. Now imagine 1000 trades with $500 investment per day and if 250 won and 250 loss then the Binary Option site is making 1000x$100= $100,000 per day and this happens 5 days a week so overall the Binary Option Sites make 20 days x $100,000= $2,000,000 per month.

Binary Option Earnings

How much do you think a normal Binary Option Site earns every month?

See results

How to be successful with Binary Options?

To trade successfully with Binary Options you must have a lot of knowledge about the asset in which you are investing your money or you must have some experience in the field of market and trading or you must have a high quality signal providing software.

There are no secret tips or tricks or any strategies to make money with Binary Options. There is no patter in the direction of value of asset which you can recognize and make money. Since market is affected by a lot of factors there cannot be any guarantee about the future value of any asset. Always keep in mind that you can be successful with Binary Options if you have knowledge about the asset in which you are trading or you have any professional software like ABS.

Binary Option Earnings.

Winning Trades.
Winning Trades.

Some Points Worth Considering.

1. The most important thing to know is that the Binary Option you are working with is legit or not. Check there licenses read about their policies and google there reviews.

Some great Binary Option Platforms are

i) Topoption

ii) Redwood

iii) Traderush

iv) Banc de Binary

2. Always remember to invest in the asset you have knowledge about or use professional Signal providing software.

3. Invest little amount of money (Between $10-$100) especially in beginning don't go for huge investments.

4. Trade for a long term try ignoring 60 secs and keep you expiry time at least an hour from now.

5. Keep yourself updated with the current conditions of the market and latest NEWS about your asset make google alerts, use top finance websites like yahoo finance, Google finance etc.

6. Practice before jumping into actual trading you demo accounts or software for practicing real time Binary Options.


Top Binary Option Sites.

Site Name
Minimum Deposit
Countries
Topoption
$100
No access for US
TradeRush
$200
All
Banc de Binary
$250
All
Boss Capital
$200
All
Anyoption
$200
No access for US
Cherry trade
$200
All
Binary Option Trades.
Binary Option Trades.

Binary Signals

Use Binary Option Signals.

Binary Option Signals if taken from an trusted source can help you achieve success with Binary Options quickly and easily as the signals works according to the market conditions and provide highly valuable future predictions. The software I use (AUTO BINARY SIGNALS) to work with Binary Options provide signal with an 80%-100% accuracy is developed by an professional and expert trader Roger Pierce and have made my win ratio of 8:2 and also gives me a wide range of market perception thus making my work very easy. If you would like to make your future in the field of trading Binary Options like me then you should have a signal providing software on which you can depend and believe. To get access to the software I use and know more about it download this eBook. I would like to end by saying that no matter if you losses some trades and money no one is perfect from the beginning just keep trying and never ever give up. Always remember you are not failed until you quite trying.

Thank You for showing Interest in my article I hope this helped you and I wish you Happy Earnings.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.