In today’s shaky economy, many people around the world have had the misfortune of losing their jobs. Others lost large sums of money in investments, and there are also the fortunate few who have not been impacted by the recession.
For the majority of us, it is always useful to hear of new income opportunities that do not involve reeducation or learning a new trade. Yes, one can trade the stock market, but that would require some sort of preparation in terms of getting to know the rules and regulations. Forex is always an option, but without any preliminary knowledge and familiarity of the Forex market, it could become a dangerous endeavor.
Binary trading, a relatively new trend in the world’s financial markets might be your best shot. If you know absolutely nothing about finances, you can still trade binary options and come out profitable.
So what are these binary options? Well, the reason they are called Binary is because there are really only two possible outcomes, all or nothing. How does it work? You choose an asset you want to trade, and you evaluate whether you think that asset is on its way up or down. It is as simple as that, but let’s take a step back.
With Binary Options trading, you can open positions in Forex, stocks, commodities, or indexes. You choose your asset, whether it is an Apple inc. stock, or the US Dollar. After you make that decision, you can take a look at what that asset has done over the past few days, weeks, or months, and based on that information, you can determine whether it will increase or decrease over the next hour, week, or month.
There is no need to deal with any numbers, all you are doing is choosing Up or Down. If you selected Up, or a Call Option, and the asset increased even by one cent by the Expiry date, you have officially made profit from Binary trading. You are what’s called “In the money.” If, however, the price went down, again even by one cent by the time the Expiry Date comes around, you are “Out of the Money” and you lose your original investment. Some brokers allow you to retain 15% of your original capital, so with such a broker, at least you do not lose it all.
Trading binary options is really as simple as described above. The trading tools I have encountered are all Web-based, so no need to download anything and they all include big up and down arrows for you to trade. The trading is simple, the tools are easy to use, the risk is low, and the potential is huge.
One thing that is important to note is that it is possible to trade binary options with no knowledge of the markets, but it is not recommended. You should base your Call or Put trades on some indication and not take a wild guess, which would make trading binaries similar to a casino.
Whether you are a believer in fundamental analysis and you therefore read up on the latest news and events, or you lean toward the technicals and watch the latest trends, you should definitely prepare yourself before trading Binary Options. However, like I said, in order to trade Binary Options, you do not need to be an expert in finance, just a little homework will do the job.