Binary options trading

22/01/2014 19:06
 

binary optionI would like to share with you a new way of trading financial markets that is much easier to understand than anything else I saw before. I am talking about binary options. Now if you have ever tried trading and options in particular, you might think that it is very complicated. But it is not. Binary options simplify trading to a level that is comparable with betting.

Let’s say you are betting on a football match. Basically you have three possibilities. One team will win, lose or it will be a tie. And with binary options it is the same, the price will be higher, lower or at the same level. The results in terms of money are always only three possible: a full profit, a full loss or a zero. You see? It is really like betting on price movements without having to worry about other aspects like when you are trading Forex for example.

Now the truth is that you still have to predict the price movement direction correctly. You will never succeed in that at 100 percent, but the good news is that you need only about 60 percent of your trades right in order to make profit.

How is that possible? It is because binary options offer a return ratio of 80 percent. Sometimes more, sometimes less, it depends on which market you choose. So by a doing a simple calculation you will find the 60 percent of winning trades that I mentioned.

You might think that 80 percent are not much, when we talk about a return ratio. But remember two things. The first is that the price does not need to make a big movement for you to make full profit, you just need to predict to correct side. And it does not matter how far the price will go in that particular direction.

The second thing is that with binary options there are no spreads, no fees whatsoever. When you are trading other markets, you have to deal with the spreads, you have to pay fees for each trade, sometimes you pay fees for the price feed and so on. Binary options are like what you see is what you get. It means that before entering a trade you see how much you can earn and how much you can lose. There are only these possibilities, the numbers will not change no matter what the price does and everything is final.

The profit is completely final and yours, you won’t pay any fees or anything similar. So from this point of view binary options are more than competitive compared with other markets and instruments.

In the meantime you car read someting about binary options in Wikipedia: https://en.wikipedia.org/wiki/Binary_options