Although it is true that they are not something new in recent years, due to the ease that we have today on the Internet, more and more people decide to bet on this market. With them we can get extra money from time to time, even convert it into more than one salary if we know how to move.
In the following points we will analyze everything related to this market:
What are the binary options?
They are considered a type of financial operation that is based on trying to predict the future of a certain asset over time. When working with binary brokers that have actions, a time of between approximately 1-60 minutes is usually established (although it is true that some brokers give the option of extending the time even more).
If the user believes that the price of the asset is going to rise, the most logical thing to do is to choose the “CALL” option; On the other hand, if he thinks that the price is going to drop in the same time interval, then he will opt for the “PUT” option. When the time that has been established has finally ended, we can either get up to 90% return on the invested capital or, if we have not been right, we can lose the total investment (100%). It is also true that certain brokers, depending on the deal we have with them, can offer us a refund of between 5-15% of what we have lost.
Why is it called “binary options market”?
They receive this name because the investor will only find two results for the same operation.
When the trade is complete, it can have two outcomes: either Out The Money, or In the Money.
The truth is that opening a trade in the binary options market is very simple; virtually anyone can do it. Now, it is much easier to lose money than to earn it. That is why it is convenient to train before, try with “demo” accounts to begin to draw up the first strategy that will be the one that will finally give us money.
It is a risky market, but the truth is that some strategies will help us minimize it. In addition to “demo” accounts, we can also look for promotions or welcome bonuses. We can also start investing a maximum of 5% of the value of our account for each transaction. In this way, in the event that losses finally occur, the trader will have a greater chance of recovering. We can reduce this percentage even if we have minimal experience.
Do I need broker experience to work with binary options investments?
Yes. As much as they can tell you otherwise, we cannot enter this market without having any idea of what we are doing. Investments in binary options can generate many benefits for those who have the necessary experience in the market, for those who know when to invest and what financial amount they should put in, as well as for those who create appropriate strategies for each moment. As we have already mentioned, if a person invests in the market without being trained, it is possible that he will have to face significant losses, even calling this market a “scam”.
What assets do you work with in the binary stock market?
The assets that can be worked with in this world will vary from one broker to another, but these are the 4 basic options:
Shares: In this market we can work with shares of different entities, such as, for example, Microsoft or Google. The idea of these investments is to predict their behavior over time; if you hit, then you will take 90% of the profitability. These investments are characterized by achieving very high profitability in a very short time with a minimum investment (leverage effect).
Raw materials: These products have the particularity of being quoted in international markets. Working with these assets is somewhat complicated, since they are volatile: that is, the price can vary considerably overnight. In general, the main raw materials with which work is usually gold, silver or oil.
The good news is that there is a lot of information about them; It is for this reason that the investor will have all the tools to be able to hit his prediction.
Currencies: In the same way as raw materials, currencies are also in constant movement, although there are usually not too extreme rises or falls. The investor who, for example, invests in euros, will have to choose a “currency pair” to start working on (such as the euro/dollar pair, euro/pound, euro/yen). You work with two currencies, never with just one.
Before betting on currency pairs, it is important to know the characteristics of each operation, to go directly to the ones that suit us best.
What are the advantages of betting on the binary options market?
Ease: Trading with them is easy, since we only have to anticipate the behavior of a certain asset. Knowing how to do it is no longer so easy.
Minimum deposits: We can start working with binary options with a minimum deposit from 100 or 200$/€. Each minimum transaction will have a value of 10-30$, depending on each broker. This tells us that we can start with this market, but without having to go bankrupt from the start.
Comfort: We can trade this market from anywhere, even in our bed while in our pajamas. You can also work with them from your mobile phone or any other related support, as long as you have a network connection.
Facilities: Promotions, welcome bonuses, “Demo” accounts… are just some of the resources that will make it easy for us to start.
A whole world of profitability is waiting for you in the binary options market.