What Are Binary Options?

What Are Binary Options? Binary options are a type of online stock trading. Trade-in this sector is specific with its extreme simplicity to grasp, just like the name says (binary – ­ having only two parts – profit or loss). Even new trader, who would have big problems in the stock market, could trade options profitably. Binary options trading combines the analytical aspects of day trading with the powerful features of traditional options trading. With binary options trading, you can potentially generate profits or losses, based on the rise or fall of an asset during a certain time period, ranging from 30 seconds to several days, weeks, or months.

What Are Binary Options?

Due to the reactive nature of the financial markets from daily news reports among many other factors, the binary options platforms provide a diverse amount of trading opportunities. For example, whenever the value of a stock such as Facebook rises or falls due to a news announcement, its change in value can represent an investment opportunity where you can open a position on a binary options broker. There are many opportunities throughout the day in which you can take advantage.

Trading binary options are always clear and fast. Everything is about commodities prices or currency pairs and their decrease/increase. In the last few years, this type of trading has become very popular, offering investors a low­budget and way of trading on the financial market. Investors in this field receive a fixed profit rate, minimizing the amount that an investor could lose in a separate trade. Compared to forex trading as such, this trading style is easier, but potential gains don’t reach as high. All in all, binary options are a suitable way to get started in the financial markets.

Binary options brokers usually offer profits ranging between 70-­95%. Meaning that if your trade (your prediction) is correct, you’ll get your money back + an extra profit of around 90 percent.

What Are Binary Options?