The Basics of Binary Options Investing

27 Apr

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If you are looking for an attractive investment venture that requires very little of your time, you want to take a look at binary options investing. With traditional stocks, ETFs and other related assets, you may have to wait for extended periods in order to gain decent returns for your investment. With binary options, it is possible to make returns of as much as 70% within a 1-hour window so you won’t have to burn much time in order to get the profits you want. 

The basics of binary options investing is rooted on the concept or “betting” if a specific asset falls above or below a certain target after a specific length of time. As you may already know, the price of most assets like stocks fluctuates within a given day due to market forces that influence its movement. Predicting how the price will end up after an hour, a day, or a week fuels the concept of binary options investing. Find out more information in a binary options forum.

For this, you will be asked to make a “put” or “call” decision on a specific asset price. For example, let’s say you are tracking the price of Apple shares (AAPL). On a binary options investment website, you will have the option to “put” (bet that the price will go below a certain value) or “call” (bet that the price will go above a certain value). Often, the reference value is the price of the asset at the time you made the investment. You will then be asked for the expiration time of your investment. The expiration time is length of time after which your call or put decision is evaluated. If you “guessed” right, you will get the investment payout; guess wrong and you lose all your investment. 

What makes binary options very attractive is that the returns far exceed the typical returns of most stock market assets. For one transaction, you can get a payout of 70% of your investment and this can happen as fast as an hour after investing. Conversely, the all-or-nothing nature of the investment means you can lose a lot in a very short amount of time if you string together bad “bets” within that period. 

Despite the attractiveness of binary options investing, the caution remains that you will need to have a sound basis for making the right investments. For this, you still need to read corporate news, follow legislation that may affect the assets you would want to bet on, and other relevant issues that can help shape the performance of an asset. 

Make sure to properly understand what is at stake with binary options investment before making the jump. Remember; like all other investments, you can earn or lose money with bad investment decisions. The important message is to never get too attracted to the returns if you don’t have an idea of the inner workings of the investment.

5 Responses to “The Basics of Binary Options Investing”

  1. Mi January 12, 2013 at 1:58 am #

    I lately began buying and selling options with banc p binary and i must understand what encounters others have experienced with buying and selling about this platform in addition to binary options buying and selling generally.

    Thanks ahead of time for the insight?

  2. Reinaldo January 13, 2013 at 11:23 am #

    I wish to try buying and selling in binary options, but I wish to do this with fake money first. Can there be any web site where I possibly could do this?

    Thanks. 🙂

  3. Jacquelyn March 25, 2013 at 3:46 pm #

    I just started trading on empireoption.com and other than showing me which way other investors think the stock will go, I don’t understand how to make an educated decision on whether the asset is going to go up or down.

    Any tips or suggestions are helpful 🙂

    Thanks!

  4. Buster July 28, 2013 at 10:19 am #

    Binary Options is a legit opportunity but it is impossible to find a legit company online because of all the scams. Does anyone know how to find a legit Binary Option broker? My understanding is that there are none in the US only abroad. I am looking for one that is regulated by the CFTC -Thanks, David

  5. Melodi September 14, 2013 at 8:25 pm #

    I want to trade with binary options and need serious LIVE stock charts. I know where i want to trade but their charts are bad (read crap). I need separate charts. using different site to trade is not an option.
    thanks 🙂

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