There is a new trading/investing option making a lot of noise among the high risk, big roller crowd. Many people are moving away from traditional stock/option day trading and moving towards this. There is a new trading vehicle called Binary Options. It was developed as an idea from the Forex (foreign currency exchange) market. Binary options are too close to actual gambling in many peoples eyes. So countries have not allowed brokerage firms to trade them. Cyprus seems to be the place that the major Binary Option Trading brokers are registered and do business.
So What Is Binary Option Trading?
Very similar to forex. You take a pair of currencies. For example, the British Pound and the Australian Dollar. You read charts, check fundamentals and assess each countries economic situation. Then you predict which way the two currencies will move against each other. If you are right, and the currency moves just a slight bit in your favor, you can earn huge profits. The leverage in forex trading is what enticed many traders.
Leverage is a two edged sword.
Yes, being able to leverage up your deposit into huge profits is a reason so many are drawn to forex investing. On the other hand that type of leverage can result in a small move against you completely wipes out your deposit. Risk/Reward
Binary option brokers have taken this one step further. Instead of opening positions that you hold for days, weeks or months the binary option is a short term snapshot trade. You pick a pair and decide which way they will move against each other in the next few minutes. You can get in and out of these trades in just minutes or hours. No need to have those sleepless nights worrying about open trades.
I have been known to get up 10-15 times during the night to check on my Forex trades. Obviously, that wasn’t good for me, my health or my family. Binary options gives me the choice to trade in much shorter time frames. Winning or losing, it helps me reduce my stress.
That biggest problem with Binary option trading is that it is basically a win/lose proposition. If you win, you can make double digit returns in just minutes. If you lose, you lose your entire deposit. Obviously, cash and money management is the most important discipline needed to be profitable trading this instrument.
If you would like to learn more about trading binary options you can visit this information website: www.Boptnews.com
You can’t place a binary option without a broker. There is a lot of discussion about different brokers, policies, deposits, withdrawals and bonuses. Here is a link to the current, most popular broker.
Like most trading vehicles you can’t always “Google it” and find the best or highest quality service. Some of the sites at the top of the search ranking for binary options are not always your best option. I found this out when I met some great people who worked in a Kitchener SEO business. It’s best to do a lot of research and don’t take rankings on search engines as a ranking of quality.
Good luck with your trades if you decided this sort of volatile, high return, high risk investing is for you