Binary Option is not a ‘new’ market per se, but since the emergence of the internet as a trading venue, it has definitely been on the rise, with more and more traders engaging in binary option trades than ever before. But, is it a good idea to invest in binary options? Binary options are highly volatile, but come with potentially huge payoffs. http://profinanceblog.com/binary-options-a-good-investment-idea.html

1. Binary Options – A
Good Investment Idea?
By
Profinance Blog

2. What people do with
money?
Earn money
Spend as per requirement
Invest to grow money
Save For future requirement

3. Most people are always on a
lookout for a new way to invest
their money and make a profit.

4. One of t he more popular new
ways of t rading is -

5. In order to even start debating whether
binary options are a smart investment
idea, we first need to explain what they
are.

7. A binary option is the option
where the payoff can have only two
possible outcomes, called “in the
money” and “out of money” when
the option matures.

8. You are putting your
money, predicting
whether a commodity
will be trading above or
below a certain price at
the time the binary
option expires.

9. You think that a
stock of a company we
will call X will be worth
more than a $100 at 2
p.m. today.
You purchase a call option
on such an outcome.
You are then
showed how
much money
you will earn
if you are
right
If you are wrong and
the stock goes down
with its value dropping
below $100 by 2 p.m.,
you will lose your
money.

11. Stocks
Currencies
Assets such as gold or oil, etc.

13. One can make quite a bit of money trading in binary options.
The profits that can be made in the binary option market are
manifold of the money you actually invest. In addition to this,
binary options are traded at a rapid rate, often closing within
hours or even minutes from purchasing an option.
You do not need any kind of formal education to trade on the
binary options market as you will be investing usually without
performing different kinds of analysis that require theoretical
knowledge.

15. Like all high-yield markets, the binary option market also comes with a
number of risks.
People choose not to start investing in binary options is that they are often
traded on unregulated exchanges and websites where the traders’ money is
not safe.
Binary options are notoriously difficult to predict, especially if you are not
serious about your trading.
Due to the short maturity time, the moves on the market are quite hard to
imagine

17. In short, binary options are highly volatile, but
come with potentially huge payoffs. If you find a
reputable place to trade in binary options, there is
really no reason why you shouldn’t try your hand
at this kind of investment.
This is especially true since many binary option
trading platforms allow you to first try it out for
free, before you make a deposit and start investing
for real.

18. Tina Roth is a personal finance writer and educator. In
addition to being the editor at her own Finance Blog, she is a
contributing writer to many other online finance blogs. When
she's not working on her budget spreadsheet or looking for
topics to write about, you can find her playing with her kids or
doing her house decoration. To reach her you can visit her
Google Plus profile here:
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