Binary Options

 

 

 

Why trade Binary Options?

 

 

Trading binary options is one of the easiest yet most fulfilling ways of trading financial markets. They are easy to understand as they just propose “will the market go up or down?” Based on your answer, you choose to either take an UP or a DOWN option.

 

These are much easier than using traditional Call/Put options. Because they are “binary” – once you decide on the direction, everything else just requires time. So basically you;

  1. Pick a market to trade (choose from tens of stocks, forex pairs, indices, and     commodities)

  2. Decide how much to risk on the trade

  3. Choose the time frame (called the expiry)

  4. Choose the direction (UP or DOWN)

  5. Click APPLY

Now all you have to do is wait till the time is up.


Once the expiry comes along, which can be as little as 1 minute and as much as far as the end of the month, you either make a profit or lose your initial risked investment.

 

Your profit is based on the fixed payout offered on the option you chose.

 

You will see this here (see the screen shot below):

 

 

 

 

 

Binary Options are simple, quick, and profitable.

 

Binary options are named as such because they only have two possible outcomes: either the forecast is correct or it is not. 

 

Do you think the price of Oil will reach $100/barrel in the next hour? 

 

By investing in your forecast, you can earn 89% of your investment in under an hour.

 

 

Here’s an example:

  1. Invest $500 in one of the available assets, example: Google

  2. Decide if Google’s price will go up or down

  3. Click ‘Buy’.  If you’re right, you’ve just made $445!

 

As a trader, you decide how much you want to invest in the option as there is no fixed price for the option, just fixed return. 

 

Binary options may also be known throughout the financial world as Fixed Return Options (FRO) or Digital Options.  This alternative titling of binary options points to the fixed and online nature of binary options.

 

Expiry times for binary options are much more immediate than other options.  Whereas investors may expect dividends on a monthly or quarterly basis, binary option traders receive their profits immediately after the expiry time, which may be as short as five minutes or as long as a few days.  When you invest in your option, the expiry time is clearly stated so you can manage your investment efficiently.

 

Binary options are an easy, straightforward, and lucrative way to invest in any market you choose while not having to purchase assets or wait for your profits.

 

Binary options enables you to trade with -

  • NO Slippage

  • NO Margin required

  • NO Commissions

  • NO Spread

Binary Options are designed to provide an exciting trading experience, even in quiet market conditions.

  • Trade with strictly limited risk

  • Small initial investment required to trade

  • Opportunities in volatile and quiet markets alike

  • Multiple daily trading opportunities

 

The dedicated support, online assistance that is available on the option websites and the user friendly interface makes trading very easy. The platform that offers statistical online trading using three trading instruments, which are:

  • Out/In Boundary,

  • No Touch/Touch and

  • Low/High.

 

The option review platforms can easily be used by novices at online trading or professional traders.  Before investment, rewards and risks are approved and you will able to receive up to eight-five percent returns within a few minutes. You can guarantee that trading will be done in a secure and safe environment. All exposures and liabilities are controlled carefully with affirmed profit payouts according to the conditions and terms of the platform.

 

 

You can trade Binary Options at the following companies:

 

 

Should you invest in Binary Trading?

 

 

It all sounds so exciting and easy!

 

Just pick a direction and there you go!

 

Websites are full of promises of all the easy and fantastic profits you can make.

 

 

 

I'd like to discuss the risk on binary trading.

 

It is my personal opinion and some people will disagree.

 

 

Let's look at the procedure of binary trading again:

 

You will:

  1. Pick a market to trade (choose from tens of stocks, forex pairs, indices, and     commodities)

  2. Decide how much to risk on the trade

  3. Choose the time frame (called the expiry)

  4. Choose the direction (UP or DOWN)

  5. Click APPLY

Now all you have to do is wait till the time is up.

 

This is where the problem comes in:

 

Once a trade has been activated, it is totally out of your hands.

 

There is nothing you can do but wait till the time is up.

 

If the market changes direction just a few seconds before the time is up, your money is gone!

 

There is nothing you can do about it!

 

 

 

In the example above you can see that the market changed direction several times during the period of the transaction. Where is it going to end up? You do not know. You have to take a chance.

 

Like I said: Once a trade has been activated, there is nothing you can do, but wait.

If the market turns and goes the wrong direction, you will lose your money.

 

In my opinion Binary Trading is no more than gambling.

 

In discussions with representatives of Binary Option companies they have mentioned more than once that there are more people losing their money with binary options than people making money!

 

 

Question: Can you afford to lose your money?

 

If not, stay away from Binary Options.

 

 

In my opinion Spot Forex is much more safe to trade than binary options and you have a higher probability of making something.

  • You may close a transaction at any time.

  • So if you are in a trade and notice that the market is changing direction, you may close the trade while still in profit and take your money.

This gives you a huge advantage as to trading Binary Options.

 

 

I think I have said enough.

 

You are welcome to contact me with questions / suggestions.

 

 

Johan

 

 

Please read these articles as well:

 

 

 

 

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PS: If ever you realize that you need quality training in order to understand the markets better and to trade better, contact me for your training!

 

If you are having trouble signing up or require any assistance, please do not hesitate to contact us on info@forexmasters.co.za.

 

Johan

info@forexmasters.co.za

 

 

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Disclaimer

 

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

 

The products and services discussed on this webpage are not solicited to S.A. customers.

 

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