Why Trade Binary Options?
This is always the first question people ask when they find about binary options. At first sight, this form of online trading might just look like any other complex online trading activity that can only be performed by high-profile professionals, however, in reality, almost everyone can trade financial assets in using this method of financial betting.
The main reason why manly people trade financial assets is in order to make money. This however usually leads to at least two additional questions. The first question is how to make money with online trading of this kind and the second question is can you even make money with binary options at all.
Let’s answer the first question. You make money in this form of financial trading by predicting the movement of certain assets. There are only two ways the value of an asset can move, which are up and down. Imagine that Amazon’s stocks are at $100 right now. A typical financial betting contract might ask you to predict if the value of Amazon’s stocks will be above $100 in 2 hours or below $100.
In order to purchase a binary options contract like the one in the example above, you will have to invest money. Most commonly, you can invest any sum between $10 and even up to $10,000. Obviously no one forces you to invest $10,000; you can just invest $10 (and sometimes even lower), as many times you like.
If your prediction will come true, then you will be rewarded with the returning of the money you invested plus a certain percentage of it added on top. Typically, you might win $190 in case you successfully invest $100. This however is varying at every broker.
The answer to the second question is yes, you can actually make money with binary options. Predicting the movements of most assets is actually completely non-random. If you are aware of online trading strategy, like the ones described in our strategy section, then yes, you will be able to pretty accurately predict the outcome of most contracts.
Entertainment and excitement
Another reason to trade binary options is that this form of online investing is very exciting and entertaining. It’s fun to do research in order to figure out what’s going to happen to an asset during a given day. It’s more fun to know that your research will at the end of the day be rewarded with a lot of money.
It’s also exciting to wait until an options contract expires after you purchased it. You’ll literally sit in front of the screen and count the seconds until the option expires and root that it will expire in the money. Even if you don’t win (which you will if you follow our advice), trading is still a lot of fun.
Can Anyone Trade Binary Options?
We already briefly answered this question above. Yes, anyone with some basic common sense can trade financial contracts. So, unless you’re stupid (which you most likely aren’t due to the fact that you do research on the internet on binary options trading and landed on this site) you’re suited for online trading of this kind.
A common misconception is that you’ll have to have an advanced economy or business degree to be able to trade. This is not true. In fact, this is not even true in the case of advanced forex and stock trading either. This from of trading is several times simpler than traditional stock and forex trading.
However, in order to win at this type of online trading you’ll have to pay a lot of attention to details and patterns in the movement of certain assets. – Learning these things is not complicated at all. Just go though our binary options strategy section to learn how to win in financial trading. It’s really that simple.
Where to Trade Binary Options?
You can trade contracts of this kind at so-called binary options brokers. These brokers are financial service providers that sell financial betting contracts to traders. Options broker are legitimate businesses with valid financial service providers licenses, much like banks and hedge funds.
At this moment there’s already a very large number of binary options brokers on the market. This variation is also reflected on the services they offer. What this means is that different brokers offer different kinds of services. The services offered by one broker might not necessarily satisfy your needs but the services offered by some other brokers might be more to your liking.
For this reason, you should be very picky when it comes to choosing the right broker. One of the main things you should look at in a broker is the number of assets offered. The more assets there are available, the better binary options strategies you’ll be able to use.
A good broker should also offer very advantageous payout rates. Payout rates represent a certain percentage of the money invested in an options contract. When you accurately predict an option, you will be paid out based on the amount you invested as well as the payout rate. So the higher the payout rate, the more money you’ll win.
The bottom line about this subject is that you should trade binary options because it offers you the chance to generate substantial revenues and because it’s very exciting. Our various articles on our website will teach you how to trade and how to win at this from of trading. Make sure to check them out before you decide to register at a financial service provider.