If you are looking for an investment vehicle that is both time-efficient and potentially profitable, binary options have a great fit. Quite simply, binary options trading is the fastest form of investment that exists. You can complete a trade in as little as 30 seconds. Compare that to the time scale involved in trading almost any form of asset you can imagine!
Binary options also offer high yields. You can earn more than 85% of your investment per trade. That is a profit margin you simply do not come across in conventional trading.
Read on to find out more about binary options, and how you can benefit from them.
Binary options are easy to use
Binary options have quickly become phenomenally popular the world over. One important reason for this is that they are so accessible. Simply put, they are a very easy investment tool to use.
This means that all sorts of traders can invest in them. You do not require a deep understanding of economics, a professional trading background or relevant degree.
In their essence, binary options simply ask you to make one, straight forward call: will the price of one specific asset move up or down during a set time-frame. That’s all. No hocus-pocus, no advanced formulas.
Simply make the call: up or down
Another thing you do not need in order to make money is a lot of capital. In order to invest in real estate, you need money for a down payment, plus regular mortgage payments. In the stock market, you won’t get far without at least having tens of thousands of dollars to invest.
With binary options, you can get started with only a few hundred dollars as your initial investment. The high speed and big profit margins mean that even such a small amount of capital can grow rapidly.
Whereas stock brokers will charge you substantial fees for the use of their services, most binary options brokers will not impose any fees at all.
You can complete binary options trades very quickly!
This really is a very important point that attracts a lot of investors to binary options. You can literally complete a trade in a matter of seconds. Obviously, this is a very attractive proposition.
When you invest in a binary option you specify its expiry time. This expiry time can be anything from a whole trading day, down to 30 seconds. Most binary options traders prefer expiry times somewhere in the middle, with 10 minutes the favored option by many.
The high speed means that you are able to complete a large number of trades per day. Obviously, this makes it possible to make a lot of money very quickly.
Another great benefit of the speed with which you can trade binary options, is flexibility. If you are not yet a full-time trader, you can for example complete some trades during your lunch break, or during your daily commute. There is no need to sit in front of your computer for eight hours a day in order to make money on binary options, that’s for sure!
The potential earnings are huge
We have already mentioned that there is a lot of money to be made – fast – in binary options trading. A very important factor in this, is obviously the vast profits on offer.
Exactly how much you can earn on a binary options trade depends on a number of variables. They are beyond the scope of this article. As a general rule, we can say that a good binary options broker should offer returns of about 80-85% per trade.
This is staggeringly high. It means that you can take in up to 85 dollars in pure profits on an investment of only 100 dollars – in as little as half a minute!
A profit margin in excess of 80% is almost unheard of in the stock market, and an absolute impossibility on time frames such as these.
Please note that different binary brokers offer different returns per trade. This is something you need to keep in mind when choosing a broker. Obviously, the higher the returns, the better the broker!
There are many binary options brokers to choose from
Which brings us to binary options brokers. This is a type of financial institution that offers binary options trading to their members. You need to be a member of a binary broker in order to invest in binary options.
Most binary brokers only operate in this one market place; all conduct their business online. The vast majority allow members to complete trades via handheld devices.
It is very important that you choose the right binary broker for you. There are a great many brokers out there, and they are not all suitable for all sorts of investors.
For example, some are geared only towards big investors, others only offer investments in one particular asset (usually currencies), and there are some that are only available to investors in certain countries.
The most important consideration is to make sure you find a broker that fits with your budget. All of them operate with a minimum limit for how much you need to invest in order to open an account. This limit can vary from 10 dollars to 10 000 dollars, and more.
Clearly, you need to pick an option that’s right for you.
Fortunately, many brokers offer different types of accounts for different kinds of customers. In order to learn more, you can visit one of the many binary options info sites on the web.
The more you know, the more you’ll earn
As we have already pointed out, you do not need any kind of expertise in order to trade in binary options. This is a form of investment that is very easy to get to grips with.
Having said that, though, clearly you stand a better chance of turning a long-term profit if you take the trouble of educating yourself. The better you understand this market, the more success you are likely to have.
Luckily, help is at hand. Many websites specialize in providing in-depth articles about binary options. Here are some of them:
Also, all good binary brokers offer learning centers where you can study binary options, and learn how to make the most out of them.