Binary Options for Dummies

BinaryOptionsNow | Published on August 18, 2011 at 2:38 pm

AnyOption review

BinaryOptionsNow - While it may sound surprising at first, binary options trading is actually the one of the simplest forms of online trading to master. After all, it’s no coincidence that binary options trading is so prevalent among those who are new to the online trading community.

However, advanced traders also engage in binary options trading because of its impressive short-term profit potential and the ability to use binary options to hedge other investment positions. Binary options trading can be profitable form of investing for both experienced AND inexperienced traders alike.

 

What do I need to know to trade binary options?

binary options for dummies binary options now Binary Options for DummiesIn order to successfully invest in binary options, all you need is the following: a computer, an Internet connection and the desire to research financial assets. The good thing about binary options trading is that even those with no background in financial trading can still profit from binary options trading. That’s exactly why binary options trading has been exploding in popularity in recent years.

Indeed, the only characteristic you really need to be successful at binary options trading is the ability to make decisions based on information easily available on the Internet. Since binary options platforms provide you with a good amount of the information you need to make successful trades, the real secret is to know what additional information to look for in order to identify the best market conditions to make the most profitable trades.

Arguably the best thing about binary options is that you don’t even need a lot of money to start trading and profiting from them since there are binary options platforms that will give you FREE money to start trading. Just take a look at OptionBit’s bonus deal for more information.

 

How to make money with binary options?

The answer to this question can be summed up in just 6 simple words: “Predicting the value of an asset.”

In other words, a trader only needs to understand whether the value of an asset will rise or fall during a specific period of time in order to make a profitable trade. The asset can be a currency like the dollar, a commodity like gold, or a Stock like IBM, Apple or Google.

Let’s look at an example of how a forex binary option (that is to say a binary option on a foreign currency exchange rate) works:

You see data that indicates the US dollar will appreciate in value over the next 15 minutes, so you invest in an EUR/USD option that will profit if the dollar goes up in value. If the dollar actually increases by even 0.0001 in value at the end of the 15 minute period, you will earn up to 85% of your initial investment in the binary option.

That means that if you invested $200 you would make back $370 dollars! That’s a whopping $170 of profit in just 15 minutes. Now you can see why binary options trading is making a name for itself as the most profitable type of financial trading on the market.

As I said before, the key to making a successful trade is knowing what patterns to look for. For an excellent guide on pattern identification and trading strategies click here.

But even if you were to let luck be your guide and invest blindly on an asset, you would still always have at least a 50% chance of earning money on any asset! Now imagine that you spent a little time accumulating knowledge and experience on identifying trends and patterns – you could easily push up your chances of making a successful trade from 50% to 89% or even higher. That’s when the doors of profits really start to swing open for you…

 

Different types of Binary Options

Beyond the standard type of binary options which we advise to begin trading on – Up/Down or Above/Below options – there are also other kinds of binary options that are definitely more complex, but also more lucrative. Once you master the standard type of binary options, you should begin to look into the profit potential of other types of binary options such as In/Out Options, Touch Options, Binary Betting and many more!

 

Conclusion

Overall, binary options are an excellent financial tool for both beginners and advanced traders alike. If you are new to the world of online financial trading or you are a veteran, you should take 10 minutes to set up a free binary options demo account so you can see for yourself the lucrative opportunities available in binary options trading. Click here to open a Free Demo Account now!

 

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Binary Options for Dummies, 5.0 out of 5 based on 3 ratings

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