Binary Options 101
Have you ever thought of making some money online? It can be done without even leaving your house. Since recently, you can invest online and have your money pile up before your eyes. Of course, if you know what you’re doing and have done a bit of research. Maybe you have some knowledge about finance? Cash it in then. Here’s suggestion! Look into this thing called binary options. Here are some basic instructions and information. For more you can visit Wikipedia.
Trading in binary options relies on estimating the performance of underlying assets during a certain time frame. How do they work? When people deal with investments online or in real life, they purchase a certain asset and invest in such manner.
So, profit and loss are marked by a change in the value of the asset that has been purchased. The thing is, if the price of the purchased asset rises and it is sold back to the market when the price had already risen, profit is made. On the other hand, if the purchased asset has its value decreased, money is lost if the asset is sold back to the market at that moment.
Generally speaking, the market is usually quite volatile, and you may worry whether you’ll lose money if you invest in a certain asset (stock, for example) and not sell it on time. Binary options work according to a similar mechanism but are much simpler to trade with, and they partly release you of the troubles of buying and selling.
The thing with binary options is that you solely need to predict the performance of a certain asset, in other words, predict whether their value will rise or fall, over a given time frame that you determine in advance. You can predict the performance of commodities like gold, stocks, currencies and others, and even calculate how much money you’d get if you get it right.
Why are they called “binary” options? This is because the outcome you can predict is twofold. The stock, commodity or currency, etc. can have its value rise or fall. So, you predict one of the two possibilities and set a given period. Thus, you pick one of the two investment choices.
When you want to predict that the value of a certain asset will rise you go for the option “Call” as one type of investment. Conversely, when there is a possibility to predict that the price or value of the asset will fall, the investment of this type is called the option “Put.”
As I have already said, there are different types of assets that you can trade with. There are indices like NASDAQ, Dow Jones, and others.
Also, different major currencies you can trade with are called Forex, and those are EUR, USD, GBP and others. Commodities like silver and coffee are also quite popular trading assets. You can also invest in predicting the performance of certain stocks.
Maybe you can choose a less popular one, or on the other hand invest in Google, Nestle or Coca-Cola.