Introduction to Binary Options

call-put

 

Binary options might sound complicated, but they’re really not. They are one of the easier and more popular ways to trade nowadays.

Generally speaking, binary options (also known as “all or nothing options”) are a way of earning money by predicting the direction of the moment of a certain financial instrument (like a stock, index, or currency) over a certain period of time.

If you think the value of the instrument it’s going to go up, you choose the option “Call”. If you believe It’s going to fall, you choose “Put”.

The expiration period can usually be chosen in a range from 30/60 seconds to an hour.

If by the end of the expiration period, the value of the financial instrument went up or down as predicted, you will get a 65%-90% Return On the Investment.

In case the value didn’t change, you just get the invested money back. If the movement was in the opposite direction of your option, you will usually lose the traded amount (some brokers allow you to get back around 15% of the amount).

In upcoming posts, we’ll explain in detail how to get started trading binary options with well-regulated brokers.

CFD Trading with Plus500

Contracts for Differences (“CFDs”) are products developed to allow customers to enjoy all the benefits of possessing a stock, index, ETF, forex or commodity position without having to physically own the underlying instrument itself.

With CFDs customers can buy (“go long”) and close the position later by selling. Alternatively customers can sell (“go short”) and close the position later by buying. Selling at a higher/lower price than the purchase price yields a gain/loss accordingly.

CFDs have grown in popularity over the past few years and becoming a popular way to trade the financial markets. Continue reading CFD Trading with Plus500

About this blog

In this blog, we will talk about something that everyone talks about, but most don’t know much about. Trading.

We will write about the markets situation, brokers, and provide trading tips. We will also write about other trending topics, like sports betting and binary options.

All this and more, here, in Trading & Bets.