Talking about the binary as an investment its look like we have to understand more about the new investment in using the binary number as today most developed number and use in cyberspace to buy or get something. You might all know what a binary number is a number of codes consisting only with 0 and 1 number. Binary in investment option is a tool that only has a yes or no option provides a fixed deadline and based on determining the price of assets to rise or to fall in a predetermined period of time.
To put it simply, you can use binary option to predict the price movement of some goods. Binary option is some financial option in which the payoff is either some fixed monetary amount or nothing at all, this is what called with yes or no option. Something to be shared is that there are only two types of binary option. They are the cash – or – nothing binary option or the asset – or – nothing binary option.
In some cases, binary option looks like a trading gambling for me. It turns out that binary option challenges you to predict whether the market of some asset price would move up or down in any seconds after you bet. You might think that it is a fifty – fifty chances, if you are learning about statistical probability you might think that binary option is the best choice to play.
The one you are guessing in order to get some free cash is you just have to say whether the price of assets will be lower or higher than the certain price at the certain time. It does look like over or under betting precisely.
Well, you surely can do the forecasting of the asset price by looking any statistical data or anything else, but if you have some cash and want to try a little basic play with a decent way to do it, try binary option.
By predicting the price will be higher than the certain price in the certain time you just have to push the yes button and no for the other condition, very simple and also quite easy to understand. Worth to try, for an elegant gambling site.
The limitation in this term and condition of binary option is that there is a minimum entry and the contract itself won’t cost more than 100 dollars. And then simply placing your bet on how that investment’s price will move, is it upward or downward.
The contract says that it always close at either 0 dollars or 100 dollars, and it is true that your losses or earnings can’t top more than 100 dollars for every single contract. Which provide you limited risk to exposure. You can take any multiple contracts to increase your winning percentage.
Here are some assets that can be traded as a binary option, which depends on your broker. Please only regulate the binary option by U.S. Commodity Futures Trading Commission or The National Future Association to prevent any changes of fraud or scams.
The asset you can trade on the binary option such as:
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Stock indexes, just like S&P 500, Nasdag, Russell 2000 or FTSE 100.
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Currency pairs (Forex).
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Commodities, such as precious metals, crude oil, natural gas, or even soybean and corn.
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Individual stocks.
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The Economic event such as federal funds rate or the jobs report.
How Binary Option Work
To enter the binary option project, you have to walk through the three main steps, such as:
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Decide your asset or market to trade.
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Decide the expiration date or time for the option to close the bet. Almost every binary options platform gives you sort of expiration date set, its provide you the view of the contract within the next year, time, days, or even seconds. Most contract ends each weekend except when it’s come to the economic events.
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Decide if you want to sell or buy binary option by looking at the strike price and expiration date. Just place your bid by selling your binary option if you think that the asset will be above the strike price.
Something is getting complicated when the investment is rapidly increasing in offering and buying the binary option. It will take the asset to fluctuate unpredictably. Term selling the contract to bid the asset and offer is used when you are buying a contract.
Like I said, the bid and offer price is always less than 100 dollars. Another case to be solved is that, how did you know that your prediction is going to be true. What takes you to take that prediction. Research and statistical analysis will save your money when it comes to bidding. Here are some clues, advice to take your prediction in betting, such as:
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More practice in the binary options demo account to learn about the strategy for winning some money. Practice makes perfect terms never goes wrong. Using your experience as a learning program for another round in binary options platform.
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Try to understand how your market trading works. Paling your bid in some trading platform without any knowledge is quite dangerous. Try forex as the safest one.
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Try to be friendly with chart and analytical data as your regular breakfast menus. Looks your price chart to predicting the bid and histories of the previous asset and its behavior would be really helpful.
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Keeps your track on your trades. The platform in binary option gives you a complete data of your previous transaction. Tracking back your trade might bring another benefit strategy in your future for binary option. Helpful to guide you for a better knowledge of plans.
Types of Binary Options
From the central mechanism of the binary option, we might want to take any good look for the types of the binary option itself. From high – low binary option as the most common type of binary option, there is another type of binary option coming from outside the U.S. country. Such as one touch binary options that belong to trading instruments need to strike price just only once before expiration to make money.
Well, besides one touch binary, we have a range binary option type which allows the member to trade to select prices range of some asset that trading within until expiration. The payout or profit is given when you have the right range if prices in some assets that were traded. And you are going to lose if the number of range you are promoting is not the right ranges of the trading asset. Somehow, it is already distributed properly that every player know about the offering, the risk, the rewards and also the asset itself. It only needs your brain to play the smartest way to gain any profits. Whether you start to bid or offer the asset to someone else. It’s zero commission that means, the platform is not taking any money in your binary options bid. Surely free but also innumerable strike price with little and simple regulatory oversight.
Binary option tutorials its quite simple, you just have t understand the meaning of binary itself that count you a yes or no option. The yes statement means you have 100 dollars contracts or 0 for the no expiration worth. The risk defines clearly that you don’t have to worry about being fraud. The fraud itself is sometimes coming from the unofficial platform that cheats in your bid. Please try to detect your binary options platform term and condition, features, or contact service before placing any bid the biding asset.
For example of the famous binary options trading platform is Nadex in the U.S. exchange. This site gives you a better environment to place the bid and protect the client’s comfort. Here is some misconception about the binary option that you might want to read, such as:
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Binary option is just a gambling
It’s not quite false but also not accurately true. For example, if you have the money to buy or single sponsored a football team you might want to buy them or just sell them to someone else. It is simply a yes or no trading business. So it is not only a gambling but also something that you have to search for some regular data to find the value of the asset itself. Playing with the number and statistical analysis and also, looking back to the previous trade to find the best prediction of the future price.
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Binary option is bought but not sold
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Have to Hold until the expiration
Your binary option only not buy and hold contract until the expiration. When the deals are over, you can also sell your contract and get new investment. Your initial investment maximum is 100 dollars and it can be known by everyone in the platform because they all have the same number of initial investment.
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Binary option is not regulated
Is it true that binary option is not regulated properly? Well, it does true for every binary options trade outside the US. It is not regulated. So, if you worry about getting any fraud by entering the wrong platform, please use the US binary platform than the other one.
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Finds Your Way To Start
Try to start with reading and acknowledge your platform of binary option, broker reviews, checking their features, service provider, and so on. Some of the features in the platform is the mobile application, demo account, and another feature with useful strategies.
For a beginner, I would like to give you some advice to play the bid in the platform that serves you a demo where you can practice and strategize your idea and learning your binary options platform first before placing your bid with no risk.
Finds the customer support in the platform you are playing. Try to see how good the platform by reading the comment from member satisfactory. If you have some question about trading in binary option, you might also find the answer in one of those questions sends by other members. To cleans you from mistakes that might be done when you are already placing your bid. Stay notice the e – mail, contact information, and their method of payment.
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A Non – Zero Sum Game
Win – win situation it is called. By only selecting your bid in the best possible time you like, and offering the price if you think that the price will be lower than what you are expecting to be. Even if I think the binary option is just like another gambling plays, which never take a win – win situation. The bid is always determined by the members to access any increase or decrease the value of an asset itself.
Another advantage in taking binary option is, you can always choose your own binary market and your time frame. It means that you might want to try winning some free cash in selected countries around the world at any time you want. Such a good option to place your bid in almost everywhere and every time.
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Advantages
Here are some advantages you might want to see when applying to play binary option in your free time, such as:
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It is impossible to lose more than the cost of the trade that you are placing. The risk in binary option is capped.
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If the stock index does not fluctuated rapidly or the marketplace is very quiet, you might have already won another free cash for the profit payout is already can be seen. Where the opportunity of your winning might increase rapidly.
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Expected values of the price movement. You can always track the values of the asset that only maximize in 100 dollars. It is super easy and understandable for everyone.
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By multiple your option contract in some situation you need and expecting in winning, you might have a multiple cash of 100 dollars for each contract you have been made.
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It can be applied by anyone with only 100 dollars investment.
