Binary options are one of the last financial instruments that have burst into the market. In recent years, more and more investors have chosen binary options trading because of their efficiency to grow their capital comfortably from home. Currently, binary options are a financial instrument fully established in the market, as evidence the large number of brokers who offers this kind of trading. Every day new traders are introduced to the exciting world of binary options. This is today the financial instrument with more potential.
But ... what are exactly binary options? Unlike other types of trading as currency or shares, trading binary options offers a fixed profit on each transaction, which may or may not be obtained. The operation is very simple, similar to sports betting. For example, you can invest in your prediction the trend price that will take the market about certain asset. And there are only two possible scenes: the trend is upward (in other words, the price up), or is bearish (the price down). If your prediction was correct, you will receive a benefit that has been fixed and known by you before the operation. If your prediction is unsuccessful, you will lose the money invested in the transaction. It's just that simple. You must only choose an asset and decide which evolution (up or down) will take your money in a given period of time. Period of time that may be only 60 seconds and can offer a benefit up to 85% on each trade. That gives a measure of the extraordinary returns that can be obtained thanks to binary options trading.
These financial instruments are called binary options because we only face two scenes in each investment decision (the price up or down), similar to the binary language used by computers (composed of the combination of only two numbers, 0 and 1).
We know now what binary options are, the next question is: why are they becoming so popular? Well, to invest in traditional buying shares, we need to spend a lot of money to buy many shares and get a good profit by a small rise in its price. However, if you think the price of certain stocks is going to go up, instead of investing big money in the purchase of these shares, you can invest in a binary option on the price of the shares, thereby you will obtain a much higher benefit (up 85%) with a much smaller investment. Obviously, this alternative has also bigger risks, because if your prediction about the rising price of such shares is incorrect, you lose all the money you've invested in the purchase of the binary option. This is the reason why market knowledge and skills of each investor are extremely important during the trading binary options. Every trader should know what is happening in the world and markets as well as events that may influence the prices of certain assets.
Binary options are probably the best way for new traders in the business world for many reasons: its operation is extremely simple, basic strategy can be learned quickly and as soon as you have chosen a broker and created your account you can start trading with binary options. Of course, you should also keep in mind that not by simply learning basic strategy you won‘t consistently get high profits. As in any business, you need to study and practice to become a good trader. But for a hardworking and eager to learn about financial markets person will not be difficult to start earning good profits in a short period of time. And, binary options trading is not only a fun activity that you can generate economic benefits, but you will develop skills that will be very useful in other areas of your life.