Everything You Need To Know About Binary Options in 2020

In simple terms, Binary options are types of trade options where the payoff (reward) received is either all or nothing at all.  This type of option has really gained popularity in recent years! In 2020 more and more people will try binary options trading because is the fastest way to make money online – up to 95% profit/trade every 60 seconds! In this article, you will find Everything You Need To Know About Binary Options in 2020!

In this type of trading, there’s no need to worry about liquidity and volatility of assets any longer when executing digital option trades. It fixed payout and there are only two possibilities in this type of option. First, either the price of the current rate of the asset will rise or fall within a specified time frame. Your ability to predict correctly, the result of your binary options trades will determine the reward you’ll get after the trade has expired.

Terms like “In the money” and “out of the money” are binary options jargon often used to denote when a correct prediction has been made within a specific time frame or incorrect prediction made within the same time respectively.

It is very simple to understand and use because the most important thing you need to know is to predict correctly, the asset’s trend direction within a specific time frame.

Assets traded in options could be stocks, commodities, indices, and forex. Since it has expiry times and dates, your fixed return price is also known as the strike price.

What I consider the best aspect is that regardless of how much the instrument or asset has moved, you are paid a fixed return on expiry provided the correct prediction was made. On the other hand, a trader who predicts wrongly on the asset’s direction will end up losing a fixed part of his or her investment or can even lose it all at expiration.

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If a trader believes the market trend of an asset will go higher at a specific time, the trader would purchase a “call” while traders that believe the market trend of the same asset will go down for that specific time frame would purchase a “put”.

In both directions, you can make money by earning a fixed return on your investment provided the correct prediction was made.

For a call to make you money, the current price of the asset must be above the strike price at expiration. In the same vein, for a put to make money, the current price of the asset must be below the strike price at expiration.

One major advantage of trading options is that both the risks involved and rewards are known. This simply means that it doesn’t matter how much the trade moves in favor of or against the trader. One factor is always certain, win a fixed proportion of your investment or lose a fixed proportion of the same investment.

Because of the high rate of return on investment often witnessed ( e.g 70%, 80%, and up to 95% returns), one would think it’s a quick way to become very rich overnight. Don’t think that way because the major demerit is that the reward is always less than the risk staked on a trade.

Everything You Need To Know About Binary Options in 2020