Binary options trading is a brand new phenomenon that could change your life and has unimaginable benefits in trading – but that opportunity is happening now. It’s open like a loophole and you know that loopholes do not final very long.
The expiration time comes and you’re in luck. Your profit is $1,000 less the $400 cost of the binary options trading, ie. $600. You risked $400 and made $600 which is 150 percent return on investment. Well done!
A good binary options broker platform should allow the user to invest in multiple assets. By restricting the user to a single asset, brokers are minimizing the profits and maximizing the returns. On the contrary, by investing in multiple assets, the risk factor is minimized. A good broker can help you to choose the right stocks and funds that should be diverted into them.
For example, if a trader puts in a call option on certain stock with a strike price of $50 and a possible payment of $400 on a contract, that person will get cash if that stock gets to $50 or above on the strike date. If the stock does not attain this strike price, the investor loses the investment.
Futures traders and stock traders too are warming to this fairly new trading vehicle. Even people who have never traded anything before are coming on board. Many of them just want to work from home and find a simple way to make income online. http://thepayoffprinciple.com can really offer them a solution.
When you decide to buy a few shares of a stock, in hopes that it will gain value with time, it makes for a pretty open ended investment. With binary options you get a predetermined amount of time. At the point that your option expires, you will either be paid your profits, or lose most (or all) of your investments. For amateurs (like me) that provides nice closure to what might otherwise be a long period of being unsure. Now you simply buy the option, and wait for it to expire. That can be in as little as an hour, or up to a week.
Sure, there were some mishaps along the way. Sometimes you’ve got that crazy unexpected trade that goes against you 100 pips like a bottle rocket in the opposite direction. But often times that happens no matter what you do…
Binary option is very easy to trade, all you have to do the research on which direction the stock is going to move and if it will be higher or lower to the original position at the expiry period.