Money making ideas – Binary Options

binary-options-tradingThis making money idea has become one of the most popular ways investors use to leverage their income, the rather new type of investment was first presented to the world in 2008 and is on the rise ever since.

Background – the history of binary options goes way back to the 1970’s when a similar type of option was introduced to the financial world as over the counter options, these options were revolutionary in their short expiry times and rather high pay-outs and were in fact the beginning of binary options. As years went by and new technology kicked inn, developers started working on a new software which would allow OTC trading online rather than “over the counter” these were also known as “digital options”.

Binary options had created a revolution in the world of trading in many aspects, not only is the trader able to trade online, it also enables the trader to trade almost any worldwide asset on one trading platform. another revolutionary feature offered by binaries is an advanced online, fully web- based trading platform; as oppose to other online trading platform trading binaries does not require any software downloading, this means a trader can trade from anywhere in the world and on any device which has an internet connection while his/her trading account follows him wherever he  is. This allows the trader to follow his account and enjoy premium service 24/7 regardless to his location.

Although binary option are very easy to trade they also involve a high risk of losing money. Trader make money when their prediction is correct i.e. in-the-money, this can project an average profit of 81% which can be reached within 30 seconds and up to one year from initial investment. On the other when a prediction is incorrect the trader will stay out-of-the-money and will be losing at least 85% of his initial investment.

So in order to make money a trader must treat binary options as a proper financial investment and trade upon a well-established trading strategy. This might sound complicated but in fact can be easily learned by any novice trader. One of the basic rules would be adopting a money management trading strategy which in short is a way to assure trading is conducted in a way which spreads the trades rather than “putting all your eggs in one basket” or in other words: A trader should always leave sufficient funds which could help recover from a losing trade. There are plenty of other binary options strategies which will help a trader increase his chance of making money, the most important ones are technical and fundamental analysis.

How does it work? – Let’s sum it up with a simple example:

Binary options are all about predicting the correct price movement of a financial asset in accordance to the market’s performance, a trader can predict Call for a rise in price or Put for a fall in the asset’s price. Options are traded in time intervals of 30 seconds, 1 minute, 5 minutes and so on. If at the time of expiry the traded assets price moved in accordance to the traders prediction then the trade ended in-the-money and the trader will have made a profit of up to 95% on initial investment so if we had put $100 on “Apple” going up within the next 5 minutes and “Apple” had risen in even 0.000001 then we will have made a whopping $95 in just 5 minutes, if our prediction had failed we would have lost our initial investment of $100.

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