The interesting thing about information is that while it’s often free, the application of it does cost you something. Getting quality information requires time and energy, but we’re lowering the cost of getting into binary options by giving you the overall process. Saving you time might as well be saving you money, when you really think about it.
Binary options trading is all about looking at whether or not you’re going to say “yes” or “no” to a trade. Binary options look at whether or not a specific asset is going to be above a certain price at a very specific time. If you believe that this will be true, you win and are considered “in the money”. But if your estimate is incorrect, you lose in the trade and you forfeit the amount invested.
Why Binary Options Are So Popular
Speed is one of the top characteristics that investors look for in a trading deal, and binary options trades deliver this very easily. Will the price of a currency be above a certain amount by 1330 today? If you think that it will, you can just make a binary call option. You buy the contract option at a set ask price, which allows you to calculate your profit. You can’t win or lose more than 100 USD, so this allows for a lot of testing and even a bit more speculation than in other places. It’s very difficult to lose your complete nest egg in one trade, the way it is with other types of investing.
Once you get into it, the system reveals itself. Looking at bid and ask prices all day might be hard to do on pen and paper, but most binary trading platforms make this very easy. If you want to get started with the concept without spending any money, there is often a “practice” mode that you can use. You can also read more in-depth strategies and reviews on Binary Options Buff site.
Binary Exercising – The Payoff
American or European? No, we’re not talking about coffee or buildings or anything else — we’re still talking about binary trading! The style of exercising your options depends on what you prefer. With European-style execution, you can only exercise the contract on the last day prior to expiration or the actual expiration day. American-style execution allows you a bit more flexibility, giving you the freedom to settle the trade at any time before the expiration date. Try both styles to see what you like!
Do we believe that binary options have a future? Not only do we believe so, we think that this is a great option for newer investors that want a chance at profit without crippling risk. Check it out for yourself and see what you think.