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What Are Binary Options?

Binary Options are a simple financial contract with a fixed ‘all or nothing’ outcome at a set expiry time. This is the ‘binary’ element to their name. They are high risk but also offer the potential to earn high returns.

A key attraction of binaries is that they offer a predefined level of return and liability. This is known up front prior to the purchase of the contract. A broker offers a predefined payout on the contract. The trader receives this payout if the contract ends ‘in the money’ i.e if the price movement has been correctly forecast at expiry. If the outcome is not correctly predicted then the contract expires ‘out of the money’ and is worthless.

Binary options are appealing as they are both simple to understand and yet offer the potential for high payouts. Most are based on a simple ‘higher’ or ‘lower’ forecast of where you expect the price of an asset to end at the agreed expiry time. All the trader has to do is select the asset, contract duration and the direction that they expect the price to move. They then decide how much they wish to wager on the outcome. A correct prediction wins the payout.

The contacts used are non-leveraged. This means that both the potential payout and liability on each contract is known up front. This means you know exactly what you stand to win and the limit of your liability if things don’t work out as expected.


Get Started With Binary Options

1 Open an account

To start trading you will need an account with a broker. Account opening is both quick and easy. You don’t need large amounts of capital to get started with many brokers accepting minimum deposits from as little as $100.

2 Pick an asset

As binaries don’t involve a direct investment in the asset traded they can be offered on virtually anything.  As a result you will find a wide range of binary contracts a allowing you to trade Indices, Forex, Commodities and major global Stocks such as Amazon, BMW, Coca Cola, Google and Nike.

3 Decide On the Direction

Once you have picked an asset it is then a case of deciding if the price will end HIGHER or LOWER at expiry. Contracts can be set to expire in seconds, hourly or over several days or weeks.

4 Set Your Stake

The final part of setting up your contract is to decide how much you want to risk. Contracts can be placed from as little as $10 right up to several thousand dollars. What you wager is your fixed liability. You can’t lose more than you stake on the contract at the outset.

5 Place Your Trade

That’s it. Every thing is set up. You now just need to pull the trigger to place the trade in your account.

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    About Us

    At BinaryOptionsInvestor we take trading seriously. We are traders ourselves and know what it means to have access to reliable resources.

    We are an independent Binary Options trading portal that aims to provide a comprehensive range of tools and resources for people looking to get into binary options.

    Our mission is to provide you with the very best impartial information and reviews to help you get the most from your trading.