Binary options are one of the last financial instruments that arise in the market. In recent years, more and more investors choose to invest in binary options as it has proven to be an effective way to increase its share capital on the internet. Today , binary options made a clear mark in the financial industry and several brokers now operate online , giving private investors the opportunity to trade binary options from home. New players are entering the world of binary options daily, and it is certainly a growing business.
So what is the binary trading ? Unlike most forms of trade, such as currency exchange or stock brokerage , binary trading is a fixed payment that you either get or not. The basics are very simple, works like betting on sports such as : For example , you can bet on your prediction of the evolution of the market price of an asset. There are only two will, the price goes up or down. If you answer correctly , you receive a payment that is set before making your choice . If you answer incorrectly , you will lose your investment. It's that simple. You decide on an asset , and then choose the way you think the market price will go over a certain period of time. The indicated time may be as little as fifteen minutes, and payment is usually about 70-80 % of your investment , which means that is definitely quick profits .
The reason is called " binary options " is that of the two possible outcomes of each option, you are investing in , like the binary system only numbers. Also used , fixed return options ( FRO) and digital options ( DO) .
Now we know what binary trading is , how it has become so popular? Well, if we have shares for example, you have to keep a lot of stock in order to make a profit in a small increase in the share price . So if you feel that a stock will go up , instead of having to spend much money on the stock market in order to make profits, you can invest in binary options for a much cheaper price but with a greater reward . This also means greater risk , of course, since you lose the entire investment if the prediction is incorrect. Therefore, education and information is very important when it comes to binary options. Investors need to know what happens in the world, and what events will change the market in a given sector .