Why trade Binary Options?
- “Binary Options allow me to spend more time at home with my family because I spend less time at the office working.”
- “When I started I didn’t have any experience or understanding of how trading stocks worked, but once I got started, I was making money within the same day.”
- “Becoming an e-Trader brought me extra income when I need it the most.”
What Are Binary Options?
Throughout the entire trade process, investors know exactly what the maximum profit/loss ratio of each trade, which gives binary option traders a form of risk management that was never possible before with traditional option purchases.
Nearly every type of underlying asset can be traded on a Binary Option platform including:
- Currency Pairs
Binary Options allow e-Traders to purchase an option that pays either a fixed amount – or – nothing. Also known as a Fixed Return Option, FRO, or Digital Option. With a Fixed Return there is no surprise at the time the expiry ends. Trades have the possibility of landing in either two positions, hence the word binary. When a trade lands ‘In the Money’ the trader will receive the fixed amount stated previous to the trade purchase. When a trade lands ‘Out of the Money’ the trader will lose their entire investment amount.
To make a trade, the investor simply selects the asset they want to trade, the direction the asset will move, then selects the expiry time of the option, and finally enters in the invest amount. When the expiry time ends depending on the outcome of the trade the trader will either land ‘In or Out of the Money’.