Investment in Binary Options

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Investment in Binary Options

Why Investment in Binary Options is a Simple and Reliable Way to Profit?

A binary option has become one of the most popular financial instruments in the 21st century due to simplicity and affordability.

In comparison with stock exchanges, binary option trading is much easier.

For instance, stock of the large companies like Apple, Microsoft, British Petroleum, JPMorgan Chase are affordable only to experienced investors,  the real “wolves of Wall-Street” because their shares are expensive and have high volatility. To trade on the stock exchanges like NASDAQ, NYSE  etc. an investor needs at least $10,000 to $20,000.

Investments in binary options

  • much more affordable, minimum requirement is just $25;
  • easy to understand, anybody having basic knowledge of economics can cope with binary option trading.

What is the essence of binary options?

A binary option is a revolutionary financial instrument being different even from classic options. An investor can make even a 70% to 80% profit on a change in prices of underlying assets including blue chips, the stock of the world’s largest corporations like the stock of Mitsubishi, Samsung, Google, Apple, Exxon Mobile, Bank of America, Google, Citigroup, Morgan Stanley, Goldman Sachs  etc. Also, it’s possible to make a profit on the stock indices like DAX, Dow-Jones, S&P 500, FTSE 100, Nikkei 225, KOSPI, РТС, on the fluctuations of the prices of energy commodities like oil and gas,  soft commodities cotton , coffee, cocoa etc. precious metals gold, platinum, silver etc.

To make a profit on investment in a binary option, you choose an underlying asset and set a period of binary option validity. For instance, you can invest in abinary option on McDonalds  stock for half an hour. Then, you need to select whether the price of the stock will rise or fall during these 30 minutes.

Let us assume that you invest in a binary option on McDonalds stock and you expect the price to rise. Its price grows in line with your expectation during half an hour. You get a 70% profit. And even if the price grows just by 0.001, your investment yields a return.  If you invest $70 in a binary option, your net profit amounts $49. Just think: $49 in just 30 minutes!

A binary option is available to invest for period from a minute up to a month. Generally, traders invest for a period of 15 minutes to an hour.

 

Comparing with classic options traded on the Chicago Board of Trade in the 70s, a binary option is a new instrument that appeared in 2008. After a little while, AnyOption, the world’s first binary option broker, was founded.

Advantages of Investments in Binary Options

Investments in binary options have gained popularity in the U.S. and Europe just within 3 to 4 years due to the following advantages:

  • low minimum requirement: $25;
  • vast choice of underlying assets: stock, indices, commodities, currencies;
  • quick return:  invest just for one minute.
  • high yield: it’s possible to make a 70% to 80% profit!

 

An investor trading on the classic stock exchange needs a huge capital because stock, in particular blue chips, cost a lot. Besides, many of the companies set the minimum requirement which means they require from investors to buy a block of shares, for instance, 1,000 shares.

Moreover, you have to invest in the stock for several years, and typically, the profit doesn’t exceed 15% to 20% per annum.

If you invest in a binary option on stock, you can have just $25 and return 70% not in 3 years,  but in 15 minutes!

 

You can make a 70% profit investing just for 10 to 15 minutes.

For instance, the economic calendar shows that the U.S. industrial production figures were released.  They exceeded expectations, and the Dow Jones began to move up. In this case you invest in the Dow Jones for 15 minutes as you expect the price to rise. If you get a result in line with your forecast in 15 minutes, you make a 70% profit. Important news in the economic calendar has a strong impact on the market this is why your investment is almost risk free.

Where Can I Invest in Binary Options?

To invest in binary options, you need to deal with a broker.

This is really simple. You browse the broker’s website, sign up, and top up your account (by means of your bank card, VISA, MasterCard etc.) Then, you choose an underlying asset, expiration, condition, and investment amount. You confirm your purchase and wait for a result. There are just two conditions of binary options:  CALL (UP) which means that you expect the price to rise during a chosen period, and, и PUT (DOWN) which means that you expect the price to fall during a chosen period.

Although binary option brokers are numerous, I advise you to choose and deal only with reliable and time-tested companies.

One of the reputable brokers is AnyOption. This is the world’s first broker regulated by the EU institutions like CySEC etc.

One of the advantages of trading with AnyOption is a guaranteed refund up to 25% in case of  a losing trade. Given the high yield of binary options, a 25% refund is a generous offer.   By the way, no other broker offers terms like that.

How to Make a Profit on Investment in a Binary Option

Investment in binary options as opposed to trading on the classic stock exchanges is much easier and more effective.

For instance, thumbing through The Wall-street Journal or watching Bloomberg News, you learn that Google will start mass selling of glasses.  How it will influence Google stock? Needless to say, its stock will go up, and you can easily make money on this.

You don’t care how much the stock will rise either by $0.1 or $100.  What matters is that the price of the stock rises.

And now imagine a variety of news on underlying assets released every day. News including fundamental news is released almost every 5 minutes which means that you have an ocean of possibilities to make a profit.

I’ll give you another example. You like cutting-edge gadgets and always follow news about smartphones, tablets etc. Let us suppose that Samsung loses another case against Apple and has to pay millions which means that next 1 to 2 daysSamsung stock will fall. You can buy a PUT binary option because you expect the price to fall.  When the price of Samsung stock falls, you will get your fair profit and, what is more important, risk-free 70%.

And the last example I’ll give you but it’s from another field. Recently, JP Morgan Chase, one of the too big to fail banks, was ordered to pay $13 billion penalty to financial regulators including SEC, the Fed etc. for securities fraud during the Great Recession of 2009.  As in the previous case, this made possible to buy a PUT option on JP Morgan stock and earn on it.

As you see, investment in binary options is not just safe and profitable but also very interesting!

How Binary Options Return Me a Decent Yield

After I have browsed the broker’s website, I selected Morgan Stanley stock from the full list of underlying assets:

1
 

Then, I set expiration of the binary option to the nearest time, that is, 6:30 p.m. It was 6:09  p.m., I invested for a period  of just 21 minutes:

2
 

As the chart shows the price was falling almost for 2 hours. It was logically to assume that the stock would keep falling next 21 minutes.

By the way, this case shows that binary options make it possible to earn both on the price rise and fall.

I typed the investment amount (you see at once how much you will profit) and clicked on the PUT (Down) button because I expected the price to fall:

3

I made a 79% profit on Morgan Stanley stock and my net profit amounted to $134,3!

4

As you see, making a profit on binary options is not difficult. Moreover, binary option trading is really interesting and ensures a high yield.

 

Allbinaryoptions.today has many other useful articles dedicated to investments in binary options and making a decent profit.  You can visit the broker’s website that I use and check the full list of shares and other assets trading which you can make money.

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