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Binary options 101

There has been a lot of talk recently about binary options and how it’s taking over the industry of online trading. It has become massively popular over the last few years, and has truly skyrocketed since it came about around 5 years ago. The reason to why it has become so popular is, in my opinion, probably because it offers such as fast paced climate for trading. Private people can double their investments several times a day! This, of course, like with any form of trading, also includes a much higher risk when you invest on something.

Another very good thing, and also one of the reasons binary trading has become so popular, is that it’s a much simpler form of trading compared to other financial instruments that are available. In fact, binary options can be compared quite easily to sports betting, and it’s as easy to learn. What you do in binary trading, is that you choose an asset, that you preferably have some knowledge of, whether it be a stock, commodity, indices or currency. The goal is then to predict whether the value of your chosen asset will go up or down in price within a particular time limit. Unlike forex trading, for example, you don’t actually buy the asset, so you don’t have the option to sell. You are simply “betting” on the fact that the price will go up or down in the near future. That is why it’s called “binary” trading. The word binary represents a two valued number system, and since you only have to options in binary trading, the word makes sense. When the time reaches its limit you will have your result.

If you were right in your prediction, you will get up to 80% return on your original investment, which is of course extremely high compared to any standards. On the other hand, should you be wrong in your prediction you will lose your full investment, and that is where the risk comes in. A lot of experienced traders call binary options a dangerous and risky trade due to its quick up and down nature, but regardless of what they say, there are a lot of investors that have made a fortune of it.  You can read more about risk  management on this link!

If you would like to know more about binary trading and how it works I would suggest that you hit up the binary central called binaryoptions.pm, which works as a platform where beginners can start off. They offer everything from basic trading guides to advanced systems that can be used by experienced traders. They also have a selection of binary brokers that they have reviewed in order to help new traders get a view over which sites are good and which aren’t.


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