“What Exactly are Binary Options” – Complete Beginners Guide
“If you dream of achieving big, than you have to take risk”. That’s what this complete article is all about. Almost all the articles we published on top Sources of generating money that includes Bitcoins, Online Casinos etc comes up with bundles of risk. And Binary options just follows that list. If your feet is already wet in Stock Market, Trading or Forex than you will definitely have a Quality knowledge about Binary options or you are right now a investor maybe. For all others who has just heard this name from a friend, family member, by surfing Internet, or in a Campaign, I have a reply for them “You have clicked the perfect spot”.
This is the complete guide for all the Beginners who want to know from Everything to Anything about the popular trading opportunity i.e Binary Options. Gear til the end and i bet you will have every damm single knowledge about it.
The Basic Layman Definition of Binary Options
Binary Options is a type of trading investment option in which their are only 2 possible outcomes. Either you will gain big or you will lose all. The Basic ideology behind this is that a trader bets on decrease or increase on the price of an asset in a fixed time interval. If the analysis done by trader in that time frame comes out to be accurate, profit is made. If it’s wrong he/she will lose the completed invested amount.
The assets can be a commodity, currency, or market share of any Company. The time frame can be 1 min, 1 hour or a whole day. You do not need to by any asset(unlike in case of Stock Market). You only need to predict the price of it.
Synonyms of Binary Options
Binary options are also known as all-or-nothing-options, digital options(as in Forex), fixed return options(as in american stock exchange) or call put options. All meaning to the same and justifies the traditional meaning of Binary i.e two.
How it Works:
Choose an asset that you want to trade for.
Click on the CALL button if you think the price of the asset will rise or click PUT if you think it will fall in the time frame that you have to choose. As i have earlier mentioned it can be a minute, an hour or a day.
Enter the amount of money you want to invest in it.
If your prediction is correct than you will generate a profit of 60-90% of your amount(It depends on various factor, one such is the type of Broker).
Suppose you have intuitions that the Apples’ share will rise in the next 4 hours. The current price of apple’s share is 532$. You have invested 100$ in it and you bet it will reach up-to 550$ till the next 4 hours. If the share price reaches to that milestone than you will get a profit anywhere from 160$- 190$. And if is not able to reach 550 in 4 hours than you will lose 100$.
Additional Guide: What you need to understand before investing anything in Binary Options
1. You don’t need to be a marketing professional to start with it. Anyone from anywhere can easily trade with it simply. You just need an internet connection on a computer, mobile or tablet.
2. The possibility of getting high profits in this case is much higher as compared to Stock market, commodity exchange or Forex trading.
3. Binary options comes up with lots of fun(if you are making money) and adventures where you simply gamble with money and luck.
There’s a suggestion for you
This is the most crucial part where you need to focus. I can say that you must learn well enough about the assets before investing in it. Must read detailed tutorials about the trading done in Binary options, your broker. Also start with less and step-by-step increase the invested amount. But these are the things which I assume you already know.
What I’m about to tell you is not unique but will be very helpful. Most of the binary Options Trading broker provide a free demo to start with. This helps anyone to gain enough confidence before investing anything. And what you need is to take it very seriously. Learn about a particular asset, stay updated with it’s recent news and than predict the outcome. If the outcome is in your favour than you are good to go(but you must try once more) and if not again analysis the asset for 4-5 days, bet on it and mark a chart. Repeat it for 4-5 times and than give a start with as less as 10$.
I hope you have enjoyed reading the article and if you really do, please share the article with your friends on social Media. I had also made a complete guide on the Best trick on how to make money with Binary options . And which I think you are looking now. Also you are free to share your personal experience(loss or gain) or ask any questions. It will help both to our readers as well as you.
To find out Best Brokers to start with read our completed analysed article on top 5 Binary options brokers