Betting on Binary Options
Binary options betting is one of the most attractive ways of betting on markets. There are only two possible outcomes – profit or loss and hence binary options betting is simple and easy to understand.
Binary options are predictions on how the market price of certain underlying asset such as stock, indce, commodity or forex will perform within a certain period of time. Trader may invest a certain amount and earn high returns if his prediction turns out to be correct.
Trader can earn profits upto 85% on his investment within one hour with binary options betting. It’s all or nothing aspect makes it more simpler and exciting betting option, while profit or loss is predetermined and hence it minimizes the trader’s risk. As compared to other types of trading, the money management and market knowledge depth required is minimum which gives the trader ample time to focus on placing winning bets. Hence the potential wins and losses are exactly known to the trader. Trader can place binary option bets on commodities, indices, currency pairs or stocks. Binary options betting can bring easy profits with low risk for new as well as experienced traders.
There are several benefits in binary options betting compared to spread betting. Binary options betting has known risk, if the underlying asset goes up, trader makes profit else loss. Risk is not more than the amount invested. Online Binary options betting are becoming more popular nowadays in financial markets as these instruments allow the buyer to trade with speed, ease and without any difficulties that are involved in trading offline options.
Binary options bets are placed in two basic ways. These are the call option and put option. Call is a right to buy the underlying asset or security at a certain price either on or before a specific date. If trader feels that underlying asset will rise, he buys the call option. If the trader’s bet is correct and the price of the underlying asset is higher at expiration, trader can earn predetermined profits. Put is the trader’s right to sell the underlying stock or security at a certain price either on or before a specific date. If trader feels that underlying asset will fall from the current price, he will buy the put option.