A Quick Introduction To Binary Options

1) How Are Binary Options Different From Other Investments?

investments into binary optionsA binary option is the estimate of how an asset will perform over a specific time frame. Binary options trading is a beautiful thing. Here is a short review of how traditional investments work so that you can better appreciate Binary options trading.

With most investments, the investors purchases and owns the asset they chose. Profit or loss depends on how the value of the asset evolves. The investor can earn a profit by selling the asset after its value has increased. The investor will lose money if the asset is sold after its value went down.

Traditional investments usually require the investor to constantly check the value of the asset they purchased. This can be stressful and time-consuming. It is possible to make mistakes and to sell at the wrong time. Binary options are much easier to manage than other types of investments.

Options are traded on different markets. There is very little stress involved when it comes to managing binary options since investors do not have to constantly check how the value of their options is progressive. Options are kept for a predetermined time frame, which means investors do not have to decide on the best time to sell.

2) A Definition Of Binary Options

Binary refers to the idea of duality. Basically, the only decision you will have to take when it comes to binary options is “Call” or “Put”. There are only two possibilities you have to worry about when dealing with Binary options trading.

The first possibility is that the value of an asset will go up. These are referred to as “Call” options. The second possibility is that the value of an asset will fall, which means you are looking at a “Put” option.

In order to invest in a binary option, you need to choose an asset. For instance, a binary investment in gold would be a good choice if you want exposure to precious metals. You will get better results if you choose an asset you are familiar with. In the case of gold prices, predicting whether the value of an option will go or down will be easier if you are already familiar with the market.

3) What Kind Of Assets Are Available As Binary Options?

Here are some of the options available to you if you are interested in binary options:
Indices, including the Dow Jones, NASDAQ, FTSE or Nikkei.
Forex, which gives you the possibility to trade with different currency pairs, including USD, EUR, GBP, JPY and AUD among others.
Commmodities such as precious metals, oil, coffee, etc.
Stocks, especially the ones included in the BinaryBoom asset list which covers 50 of the most successful companies. These companies include Coca Cola, Deutsche Bank and Google just to name a few.

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