I haven’t been investing for very long now, probably just short of 3 years and during that time I have learned an incredible amount about the financial world. The biggest profits which I have made during this time have come from investing in binary options. If you haven’t heard of binary options then don’t worry, neither had I. I had a chance meeting with an old friend Jean-Yves Sireau who works every day with binary options, he explained to me what they were and from there, I was not to be stopped. On the face of it binary options are actually one of the simplest ways to invest, but the method behind the investment is far more complex, let’s dig a little deeper.
What Are Binary Options?
Binary options are basically a way for you to trade on the price fluctuations of many global markets. You will be betting against or with the movement of a market over a certain time frame. In its most basic form, binary options are about saying yes or no to a price rise for a particular market or index. This example of a high-low option, is the most common of all of the binary options. These options differ from traditional options because of the way in which they are traded, the differing risks attached, as well as the different payouts.
How To Make Money?
Making money from binary options is not very difficult if you understand the markets, let’s take a look at an example of how you may invest in these options. Let’s assume that you have done your research and your analysis suggests that the S&P 500 index is going to rise above its current price of 1700, but you aren’t too sure by how much. In this situation you buy a call option (binary option) that the S&P will rise above 1700 in the next 3 hours, you can select different time slots and these will have different payout percentages. If this S&P does rise above 1700 when the option expires, you will gain profit on it, at whatever rate you accepted, if it doesn’t rise above 1700, you will lose your investment.
How to Get Started?
In order to get started with binary trading you will first need to ensure that you have a comprehensive knowledge about the market or index that you plan to buy in to. Whilst a yes or no as to whether a price will rise may sound easy, it very rarely is and you must ensure that your analysis is on point. Once you are confident in your analysis, you can buy binary options online. You can invest any amount that you like, although some brokers may have a minimum investment, and the time frame and the rise in price is all on you.
Why not give it a go today and see if you can make some quick cash.