What is a Binary Options?

Posted by OliverPearson 2

What is a Binary Option

A binary options is an exchange-traded instrument. It is the most commonly used and popular way of trading shares of such well-known companies as Apple, Google, Societe Generale, Microsoft, McDonalds (the list of the companies is really long), stock exchange indices like Dow Jones, NASDAQ commodities like crude oil, gold, and currencies.

A binary option is a contract with the condition of a price rise or fall during the set period, the amount of a profit is known from the very beginning, when a trade is made.

It sounds really serious. However, binary option trading is so simple that even a kid can understand it. There are two buttons for trading, namely, CALL and PUT or UP and DOWN. And you have to figure out whether the price of an underlying security (stock, index, currency, or commodity) will rise or fall.

Let’s listen to some good music and together understand how we can make a profit on the largest companies stock. For instance, I managed to get a return on Google stock!

What is a Binary Options?

A binary option (a digital option, an all-or- nothing option, or a fixed return option) is an option in which the payoff can take only two possible outcomes, either some fixed monetary amount of some asset or nothing at all.

Wikipedia

E.g.:

There is a news report that tomorrow Microsoft will start selling a long-expected OS. The company expects to get a $1 billion net profit.  Do you think the stock will rise? That’s for sure. Now, all what you have to do is to choose Microsoft stock in the asset menu andclick a CALL button  (Up), select the time of expiration, say, 2:00 p.m., type the amount of your purchase, say, $1000 and confirm. Well, if the price of Microsoft stock rises by even 1 point in 2 hours, you get an 80% ($800) return.

This example obviously demonstrates what a binary option is and how it works. By the way, you can invest in binary options for a period of a minute to a month.

No matter what binary option you buy, you see what profit you get on the broker’s website at once. If the price moves in the direction opposite to what you expect, you lose your money. However, the world’s top binary options broker  reimburses up to 25% of your investment. By the way, this is the only broker that makes reimbursement. What is a Binary Option Video can help you understand that a binary option is really a serious financial instrument used all over the globe.

As you may know, to buy stock of some large companies, you need a lot of money. For instance, if you want to buy Google stock, you need $50,000. By means of binary options, you can buy Google stock for just $25.

What is a Binary Options and How to Make a Profit on it?

A binary option is also referred to as “digital”, “binary”, or “all-or-nothing”. This is really an easy-to-use instrument. The only thing you need when you trade this instrument is to figure out whether the price will go up or down. You can buy a binary option for a period of 5, 10, 30 minutes, one or several hours, a day, week, or month. Binary options enable you to make an 80% profit in just 10-15 minutes. This is the most high-yielding exchange-traded instrument in the world.

The world’s biggest investors change their instruments to binary option trading.

However, average people can afford binary options as well.

How to Earn Trading Binary Options?

I’m sure that anybody can earn trading binary options because it’s simple, fast, and easy-to understand.  

Trading binary options, you can get up to a 500% return a day. To make your profit regular, you can use different trading strategies like following the trend strategy. For instance, using this strategy, an investor managed to make a $126,000 return in 2 weeks on his initial $1000 investment.

Where to Buy Binary Options?

binary optionsThere are special binary options brokers. I advise you to deal only with the best and well-known brokers, for instance, with AnyOption regulated by the EU, banks and European ministries of finance. Besides, this broker is certified by CySec. Trading is conducted on the Internet, and all brokers provide their service on the websites. Therefore, to trade binary options, you need to browse the broker’s website, sign up, top on your account in any convenient way (VISA, MasterCard, bank transfer, Skrill, etc.). Then, you have to choose an asset from the long list, for example, Crude oil or Apple stock. If you think that Crude will rise during next 15 minutes, you have to click CALL, and in 15 minutes you get an 80% profit.

On this website, you can find a list of the certified brokers. The matter is that there are many binary options brokers, but only few of them are certified and regulated by high standards set by different ministries of finance.

Conclusions

Now, you understand what a binary option is, and why this exchange-traded instrument deserves your attention.

Binary options allow you to get a high return within a short period of time. You don’t need to sit in the office, you can earn in any corner of the world if there is Internet connectivity. Thanks to the easy-to-use system, anybody can earn trading on the exchange market.

This is really an engaging process in which you deal with the world’s top companies’ stock, crude, gas, indices.

On AllBinaryOptions.today, you can find an ocean of useful information about binary options, strategies, analysis techniques, opinions, and ways of earning, a catalogue of the top binary options brokers etc.

What is a Binary Options for me?

For me, a binary option is an opportunity to earn. Now, I’ll show you how I do it.

To make a profit trading binary options, I deal with the world’s top broker, AnyOption. To start trading, I click here. I choose an underlying security, for instance,  Google stock:

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Then, I select the time of expiration as the Nearest:

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Now it’s 9:13 p.m. (+2 GMT), and the option expires at 9:30 p.m. This means that I invest for a period of 17 minutes.  The chart shows that the price creeps upward.  I expect that the price will keep rising. If the stock rises even by 0.001 during these 17 minutes, I get a 78% profit. Then I type the amount of my investment and click CALL / UP (as I expect the price to go up):

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I invest $120 and before I confirm the trade I know that I’ll get $213.60 or a $78 net profit!

After 20 minutes I browse the website to see the result:

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As you see, the concern’s stock went up a little, and I made $93.6! Taking into account the short period, it’s really great.

I can report for every million earned by me, except of the first one.
John Davison Rockefeller

2 Responses

  • Yrew

    thanks for the info, I gained $456 yesterday!

  • Diana

    I like options but is it work but not game.

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