If you are like most people, you may wonder if there are opportunities out there that can be used to generate big returns on your money. I am talking about binary options trading. Before we go further, let’s make sure we are on the same page with what a binary option is and how the trading works.
Binary options are a relatively new investment vehicle that was first introduced to the world at large in 2008. The appeal to binary options is the fact that contracts are extremely short term and can yield over 100% return if you can accurately decide the direction of the underlying stock or commodity. Most binary options websites will allow you to trade indexes such as the Dow, S&P 500, Nasdaq, etc. You may also be able to trade commodities such as oil and gold, along with a few selected individual stocks.
How to get started on the road to huge returns
When you log on to your binary options account, you can select a financial asset discussed above and predict whether the price of that asset will rise or fall in the next hour or so. Once you click the up arrow, a call option, or down arrow, a put option, a trade is born in the form of a contract. However, unlike a regular option, there is no way to exercise the contract. If at the end of the hour your prediction becomes a reality, you could be looking at huge gains that range from 70% to over 100%. It is not unheard of to make over $500 a day, if you know what you are doing. Essentially, binary options trading is a form of day trading, but with much less risk and much lower capital requirements.
The odds of you winning are 50-50, but if you have basic trading knowledge you could further tip the odds in your favor. If you are new to trading or trading binary options, I would recommend finding a broker that allows you to “paper trade,” which means you will be able to place trades and not risk any of your money until you feel comfortable.
What it all comes down to
The bottom line here is that binary options are a great way for anyone to trade with the potential of big profits with minimum time to put in and capital to start. As I stated above, I would start with a practice account to learn the ropes but once you understand the process, a new world of potential riches is within reach.