Binary options are a new form of trading that not everyone is aware of yet. It’s probably the single most profitable venue on the net today that you have yet to take part in. Sure, there are all those get rich quick schemes, Nigerian mail scams, and other forms of scams that simply can’t work. Binary options aren’t a scam or a scheme. It’s real trading. You stake a bet based on your opinion on the financial markets. Don’t know much about financial markets? Not a problem. We all still have some formulated opinion on things.
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For example, maybe you like Apple and think the company is going to do great. So you can take a stake on that idea and invest $25. If you are right, and the stock heads higher, even by just 1 penny, you win. Earning with binary options is for real in this way. It’s not gambling either. You are trading a financial product so the stage isn’t set to your detriment. It’s not like you are betting against the odds here. Is it the easiest thing you’ll ever do? No. It’s not. But it’s very easy to learn how to play the game. So much like chess, where it only take about 15 minutes to understand the rules but a lifetime to master, binary options trading works out to be a similar venue.
Professional traders only have 1 advantage over causal investors: Experience can play a role as well, but binary options has a level playing field where because anyone can get involved and there are no barriers, like in stock or bond trading, profits can be attained in the same way by all traders. So being a pro, per se, has no real advantage to your bottom line.
All you need is an opinion on the markets and that can include stocks, like our example above, or a stock index (like the Nasdaq or Dow), a commodity (like gold or silver), or even a foreign exchange pair (like the EUR/USD or USD/JPY). In other words, you can trade on your opinion on nearly anything and everything that has a price in the market.
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So let’s take another example. Let’s say you think that the price of Corn is going to head higher in the coming weeks because there’s an interesting article in the paper on how more energy is likely going to be made out of corn thus providing a better source of renewable energy and with it, the price of corn will rise.
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You place a stake on an UP option for $100. You can choose the time frame for the trade. So let’s choose an end of month option which means the trade will remain active until the end of the month. At the end of the month, if the price of corn did rise by even just one cent, the trade is said to be in the money or profitable. How much profit? Here’s the kicker ! Even though the price of corn may have risen just 1 cent, the fact that it’s a binary option means you get a fixed payout regardless of the size of the move in the market. In the case of corn, it’s usually around 70%. So you just made $70.