What are binary options? These are also referred to as digital options, all-or-nothing options or fixed return options. It is a type of trading option in which there are only two possible outcomes: either the buyer gets a known and fixed payout or nothing at all. The term “binary” also refers to the fact that an owner needs only to predict whether the option will go up or down in value.
Binary options are considerably easier for the everyday novice trader to understand. There is little guesswork involved, other than choosing whether the option will rise or fall. The potential payout or loss is fixed and predictable. A buyer doesn’t have to worry about losing too much money. The maximum potential loss is simply that of the initial investment.
Binary options have always been around. However, they were not available over-the-counter prior to 2008. Before that time they were usually referred to as “exotic options,” and they could only be accessed privately, directly from the issuing company.
Today they are available to anyone on most of the major stock markets, just like regular public stocks. They’re traded by professionals, but are also traded by novices and average consumers.
Online binary options trading has made this kind of trading attractive and readily available to amateur traders. Amateurs like them particularly because the potential risk is predictable and known from the outset. In fact, the odds are better than the odds of betting on many casino games.
How can I make money online this way? Once binary options went public, online trading sites began springing up all over the Web. It wasn’t long before average citizens were using them to make money online, from home.
To start to make money online, choose an online trading forum that specializes in Binary Options. Simply search Binary Options and choose the organization that you feel would work best for you. There are a number of good reputable organizations to choose from.
Next, create your account. Creating your account is free and takes just a few minutes and some basic personal information.
To start trading and making money online, you’ll have to add money to your account. This typically requires a valid credit card.
Many online trading forums require you to place a minimum amount of money in your account. Be prepared to drop at least $100 into your trading account in order to make money online.
Before you start trading, be sure to work through the tutorials that are always available on such sites. They will help you understand how to trade and will give you pointers on making intelligent calls on various options.
Some of these forums even offer live help from professional traders via phone or Web chat. If yours does, take full advantage of these services, particularly as you start navigating the world of making money online through options trading.
Start with low figures to begin with. As you get better and more intuitive, you can gradually increase the amounts of money that you invest. Some amateur traders make money online to the tune of hundreds of dollars in a single day. The more you trade, the better you’ll get at making predictions, and the faster you’ll make money online.