What Are Binary Options and Why They Are A Sustainable Trading Option

From: Tyler Trunnell
December 1st, 2013 | 0 Comments

As entering stock market trading becomes more advanced and unapproachable to novice investors, individuals looking to make money investing have found a new way to make their money work for them without the traditional complications of investing. Binary options trading is on the rise, and for good reason: it allows anyone of any income level to make money on stock market performance. Here’s an overview of binary options and an explanation of why they can be a lucrative investment option.

What Are Binary Options

Essentially, binary trading options are a highly simplified form of trading. Here’s how trading with binary options generally works:

  1. You choose your asset (stock) and expiry time. For this example, we’ll use Tesla as our asset and 1:35pm as our expiry time.
  2. Select whether you think the stock will be at a higher or lower price at the expiry time. So if you think Tesla’s price will go up from its current price by 1:35pm, you’d select “Call.” If you think it will go down, as it did recently even after having its safety defended, select “Put.”
  3. Enter the amount of money you’d like to “invest” in your binary option.
  4. If your prediction is correct, you make a reasonable profit.

The actual steps involved in binary trading will vary from site to site, so the terminology and technical steps may vary from what is posted above.

As you can see, binary options trading is fast, convenient, and affordable. Many sites allow you to invest as little as $5 at a time, making entry into this type of trading very easy. Plus, since you can make several binary options trades per day, you can gain a reasonable amount of money in a short time.

Why is Binary Trading Preferable to Other Types?

There are several reasons why investors new and old would want to choose binary options as their primary trading platform.
Binary options trading allows users to easily determine where to place their investments. With the increasing speed of online trading, keeping track of the billions of trades that happen every second – and then making smart decisions based on that information – is more and more difficult for average investors. If you’re a novice investor, the sheer amount of options on simply how to process this information is overwhelming. If you’re an experienced trader, the simplicity of binary options will feel refreshing. Binary options reduces investments to a simple yes-or-no decision, then allows you to act on it and profit if you make the right investment.
This type of trading also allows investors to benefit from the same types of market analysis used in other trading methods, if you so choose. Looking at charts and other statistical data can help you know how a stock is likely to perform at a given time, increasing your chances of making the right investment.

Finally, binary trading only requires a minimal investment to get started instead of the high-capital investments other types of trading require. You no longer need thousands of dollars to earn money on the stock market; even $20 is more than enough to begin binary trading.

Why Binary Options Can Be Used For Long-Term Trading

Since binary options are usually very short-term, many investors looking to make long-term investments have ignored binary trading. Some have even dismissed it as a waste of time.

That’s a mistake on their part. Smart investors can make binary options trading work for them as a long-term way to make money.
There are several ways to do this.

  • Increase investment amount. While many binary options sites allow you to begin with a very small amount of money, you’ll naturally earn more money by investing more.
  • Select a longer investment term. If you don’t have time for several binary option trades on a daily basis, select a longer term. Depending on the site, you can even choose terms like a week or month.
  • Invest more frequently. The market fluctuates a lot, and like any form of trading, no one wins at binary trading 100% of the time. However, spending a lot of time investing in binary options will improve your ability to read and predict market trends.

Developing smart strategies to make binary trading work for you will allow you to successfully earn quite a bit of money through your investments – even in the long-term.

How to Get Started Using Binary Options In Your Trading

To begin trading binary options, seek out one of the many binary trading sites. Make sure to review individual sites so you choose one that’s reputable and actually pays out when you make the right call (unfortunately, like with everything online, there are some scam sites out there). Whether you are looking to increase the value of your investments in the short term or long term, binary options trading can work for you.