Binary Options is the new popular trend in the trading world, it can be done by anyone. don’t have to be a millionaire to do it. But like anything new and promising in the trading world, you need to know what you are doing in order not to lose. Actually the odds are quite good when you prepare yourself.Binary Options trading, is all about investing your money on a particular asset, predicting whether the price of the item will either go up or down within an hour a day or even a month. With binary options trading, the call or the put option has to be exact and if it is not, you will loose the money you invested in it or in some cases you will receive a percentage of the money you invested back,it depends on the broker which you choose to trade.
A binary option is a particular option that pays either a fixed amount or nothing. The amount that an individual gets at the end of the day is often dependent on whether a particular condition is met by the time the option expires. There are two main types of binary options in the market; the cash-or-nothing binary option and the asset-or-nothing binary option. In the cash or nothing binary option, the trader gets a fixed amount of predetermined cash whenever the option expires in the money. On the other hand, the asset or nothing binary option pays the trader the value of the underlying security or asset when the option expires in the money. The idea behind binary options is that there are only two options given to the trader thus the name binary. A trader can choose either option and depending on the result he either stands to make money or lose it altogether. These are the main binary options that brokers in the binary market provide to their clientele. However, with the growth of the market, new binary options are coming up to accommodate the different tastes that traders and players in this market are constantly acquiring. Some of the other popular binary options include: all-or-nothing options, digital options and fixed return options. The all or nothing binary options and the digital options are normally offered in favorr of forex and interest rate markets while the fixed return options are more common on the American Stock Exchange.
What differentiates binary options trading from the rest of the market is the fact that in the binary options trades, the payout that a trader expects is already predetermined. The return on a particular contract is normally decided before a purchase is made. In addition, binary options can be bought on virtually any financial instrument in the market. It can be also bought with bias towards either direction; whether a call/up option or a put/down option. As such, it provides investors with the freedom of buying whatever they want and in whatever quantity.Another unique factor in the trade of binary options is the fact that they have a fixed expiry period. When a binary option is bought, the traders know just what returns to expect if the contract expires in the money and the exact time the trade will expire. In essence, it is a fixed time trade.
With the recent success that the trade in binary options has provided to the market, it has virtually overtaken most of the other trading platforms. Its simplicity and wide repertoire in the options for trading make it particularly attractive not only to mainstream investors but also new investors willing to try their hand at making real money. It is a platform that does not rely on concentrated financial knowledge, rather, it rests on the haunches of creativity and smart business practices. Binary options came into the market in 2008; however, from the look of things, the platforms are here to stay.
While there are various trading tips, strategies, and shortcuts, I’ve found Trend Monitoring to be the most reliable. This method is widely popular with professional traders and is well known for its consistency and effectiveness. At the base, Trend Monitoring relies on a very simple fact: Asset prices follow trends! This may seem obvious to many, but the real strength is the ability to identify the trends – this is where Trend Monitoring comes in to play. If the recent price history of an asset shows a significant and constant increase, the probability that the asset’s value will continue to rise is greater than the probability of it going down, and vice versa. Applying Trend Monitoring to your Binary Options trading will result in increased profits.
To sum it up Binary Trading Options is the "New Kid On The Block" of the trading world. If the required principles are applied effectively than there is no reason why one should not make money trading on this new trading platform.
