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.