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What Are Binary Options?

The Definition of Binary Options 

Image of Binary Options Puts and Call

Binary options and their ability to make you rich are being discussed by many people nowadays and here we present the real methodology behind this moderately new technique of stock market trading. Basically binary options are risky but offer rewards much bigger as compared to regular ones. Whilst this is an excellent option for individuals, who are ready to make risky moves but there are a few conservative stock traders who will not venture into such escapades. Even though you can see what is exactly on offer in such type of trading, it is no doubt a very attractive method to begin your trading business.

Let us see what exactly binary options are. The key principle behind this system lies in the short term contract made with the broker. This is not something unusual but there is one point that makes it very different from regular ones. Through binary options one can try predicting whether the asset value is on the increasing path when the contract is valid. You can even call it lottery, but this is pretty simple. If you are able to predict increase in asset values correctly you get money and if it fails your invested fund is lost.

How to Trade and Make money with Binary Options

This may sound a little abstract so we will present its approach by way of an example. When you sit in your office and buy stocks online you may come across asset purchase binary options. Here contracts offered are typically for an hour and you can generally buy them close to expiration but that may not be important as assets are acknowledged for constant fluctuation of price. When you are buying a contract you can settle on a call contract if you think that the asset will have a higher value following expiration or go for a put contract, if you believe that it will close lower. Once the contract expires, asset value will be checked and you will either earn or lose money.

This does seem like a risky option for more conservative investors but take a look at the figures. Most binary options contracts come with a ROI policy which is somewhere between 150-185% of the cash invested by you. This is surely an excellent way to earn a good income in a short time frame. This is the reason why many people are attracted towards it. The best thing about the whole system is that it is process is quite simple and you don’t require any firm training to get into it.

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