Binary Options Articles

Investing in Binary Options

In the past few years, a number of stock market traders have started to invest money in binary options. All the trader has to do is open an account and select a stock, commodity, forex, etc. Then you choose the investment amount and duration of the option’s life. Traders pick Call options if they expect the asset to expire higher than the current level at the time of expiry. On the other hand, a Put option is selected if the trader expects the option to expire below the current level when the option expires.

Minimal Investment

Global traders have high accessibility to binary options due to being able to start investing a small amount of funds on a high number of underlying assets. Nowadays, most brokers allow traders to start investing from as low as $10, and the beauty of binary options is that no commissions are involved, and that traders know their potential returns from the outset of trading. The absence of high overheads per trade gives traders the chance to build on their earnings and reinvest in the markets. This is difficult with other types of investments due to the high commissions.

Payback

Payback or return is how much money the trader receives when their binary option expires. Some brokers offer as high as 80% return for a winning trade. An unsuccessful trade can earn traders as high as 15%, a phenomenon absent in most other types of investments. There are 30 minutes, hourly and daily expiry times which traders may choose. Traders can make high returns with a small capital. This means that if you trade carefully, you can make the most of this investment type while investing on the markets.