What Are Binary Options ?
The advent of such a thing as binary options literally exploded the internet, and attracted fans of simple ways to earn a high, stable income. But ordinary citizens who have no concept of financial markets or trading structures find it difficult to understand what binary options are. With this in mind, we will describe in simple terms what binary options are, explain how they work in the financial market, and give an example of effective trading of this type of exchange contract.
So, binary options are a contract with fixed profit and loss that have a certain maturity period. The main principle of making a profit on this tool is to determine the trend movement of the cost of a certain asset on the market.
Such an explanation of binary options can be found on specialized websites dedicated to the subject. But to put it more clearly, a binary option is a type of transaction on the financial market, for which the market participant should determine the direction the price will move, for example, gold, after the registration of the contract:
At the same time, the maturity period of the position and the amount of investment in the transaction is defined by the trader him/herself. It is worth noting that when registering a binary option on the market, the trader knows in advance the amount of expected profits and the amount of possible losses. So, depending on the asset, you can get up to 90% in profit on the amount of investment, and if the trader’s forecast proves wrong, the loss would amount to the sum of the investment.
This is the simplest algorithm to profit from, out of all those existing in the financial market, which allows you to receive a high level of profit in a very limited time frame (from 1 minute to several days).
Without a doubt, an uninformed person could immediately say that this is a complex process and it is impossible to predict the market. That is not so! For profitable and stable binary options trading, there are a ton of trading strategies built on different analysis tools. For example, one of which that is suitable for beginners is a simple indicator system based on an automatic analysis tool – Alligator:
The simple intersection of indicator lines in a specific direction indicates the development of market trends and allows you to register more than 85% profitable contracts. Such trading statistics will lead to a constant increase in profits.
We have briefly gone over the principle of binary options, now let’s consider the main factor influencing the profitability of the trade. Here, the main point is choosing the right company whose platform is where the market participant will carry out the process of obtaining revenue. There are more than 200 companies in the market, many of which can be attributed to outright fraudsters. Yes, this is the reality of the binary market and any area related to finance. To avoid the scammers and consistently earn a lot, you need to carefully choose your broker. A professional platform for effective trading should have the following distinctive features:
- Trading conditions with the minimum rates
- A proprietary professional terminal
- High-quality analytics
- Free trading training
- Simple and fast withdrawals
The perfect example of this type of broker is the Binomo company. The Binomo broker offers a full range of professional trading services and they are characterized by a high client focus, experienced in the form of high-quality services, a wide range of tools necessary for traders, and high-quality support for clients. In addition, the company offers its clients the best minimum trading conditions – the amount of the initial investment for trading is $10, the minimum cost of transactions is $1.
Thus, binary options are a beautiful and simple way to obtain consistently a high volume of profit in the financial market with the help of your own computer, and without requiring a huge financial investment.