What Are Binary Options?

Before watching the video below about Binary Options, please take a minute to check out my stock trading recommendations page where you will find a few free and exceptionally useful resources that I have personally used to make money trading stocks.

What are binary options?

Binary options trading is a form of trading based on a single question:

“Did a Stock, Index, Commodity or Forex pair end up above a certain price or not, within a pre-defined time period (called the expiration date)?”

Learn from the top Trading Pro with a 90% win rate!

Here is a video that explains the concept of binary options quite clearly:

Why are binary options so popular?

Learn from the top Trading Pro with a 90% win rate!

In Binary Options trading, if you are right, you will win a significantly higher percentage of your invested money – it is often more than a 80% payout! That is extraordinarily high especially considering the very short time frames that are often used – as little as 1min time intervals! This huge winning payout is a major reason that some new traders are drawn to this type of trading. Traders place trades based on a very simple concept which is also a very appealing mechanism in a world of ever increasing complexity.

Trading Risks

As simple and appealing as this style of trading may seem, binary options traders should have a deep and complete understanding of exactly how the system works. For example, which markets and time frames they should trade and what the advantages and disadvantages are. The huge major risk factor involved with this type of trading is that if you can lose 100% of the money you invested in a binary option if you are wrong! The payout for a winning trade is never 100% (it is typically about 80%), which means that in order to be profitable you will need a win rate of greater than 50%. This is of course quite difficult to accomplish!  It is best to learn from an expert!

Learn from the top Trading Pro with a 90% win rate!

Another risk that must be mitigated is that many of the binary option brokers are oversea’s and have had a reputation for being a little shady. If you are serious about learning to trade this mechanism, it is wise to do your research carefully and pick a verified and regulated broker (Like THIS ONE).

Conclusion

Binary Options Trading can be an exceptionally lucrative trading vehicle if the risks are properly managed by choosing a regulated broker and following a top expert live trading so that you can learn the trading strategy.


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