Binary Option, Yes or No

By Jan de Wit

Great money is what we all want! And that is possible with binary options trading! That is if the ads and spam are to believe that regularly arrive in your inbox. By trading the stock market, you can earn a lot of money which is well known. The new Scorsese film The Wolf of Wall Street tells the true story of a wealthy stockbroker from the nineties. Leonardo DiCaprio plays Jordan Belfort who has earned fortunes by selling shares that are worth nothing to unsuspecting people. Funny detail is that the real Jordan Belfort has a cameo in the film. In the film the main character invests and sells pennystocks, not binary options or common stocks.

Binary Options Stock Exchange

Options along with stocks, bonds and securities are future contracts. On the stock exchange the price of securities is determined by supply and demand and are usually long-term investments. Stocks and bonds represent a value of paper, options give the right to buy or sell within an agreed period. Comparing with an option on a house: you still don’t buy the house, but you get some time. The seller keeps the house for your firm.

Binary options are also known as digital options. You can buy anything you put in the price of the option. The price goes either up or down. Binary options are short-term , so it is exciting to deal with it. Within an hour you know what you earn with your trading . It goes like this :

1. You buy an option
2. Select whether the price of this option will be higher or lower within the time frame
3. If your prediction was correct after the expiration time you get back the investment plus profit
4. If your prediction was wrong , you get nothing and you lose the deposit

Trading with a Binary Options strategy

There are several strategies to make money with binary options. For example, by consistently predicting higher. The percentage of binary options that closes with a profit exceeds the number of losses according to optimists. Only betting with money that you have won is also a strategy. Another strategy is to make an analysis of the stock and the company that plays a role in the index of that exchange or the financial news monitor and act on that basis is a strategy that may provide more structure .

There are many websites available which explain in detail how to trade binary options. You can also start by reading our extensive binary options broker reviews.

About the author: Jan de Wit is your forex and binary options blogger, bringing the best free tips, tools, ebook and more to his subscribers at his site.