All traders are different, especially when it comes the types of investments each person is comfortable with.
Some people want the high-risk trades with high-return potential. Others want a defined downside and smaller amounts of money on the line, etc.
How would you like to hear about a lesser-known way to trade that ticks all of these boxes?
- Win and loss outcomes are entirely defined…
- Trades can last less then an hour if you’d like…
- High payout percentages…
Here’s a simple example:
Let’s say you believe the price of silver will be over $1,000 by noon today. So you buy 1 binary option contract that says just that.
That contract costs you $46. When every binary option expires, it is either worth $100 or $0.
So, if at noon today silver is above $1,000, you get the payout – $100 minus the $46 to buy the binary option = $54 of net profit. And that $54 would be for each contract you purchased.
If you were to have bought 5 contracts in the same situation your payout would look like this:
$100 x 5 = $500 – ($46 x 5 = $230) = $270
And on the flip side you know that if silver was below $1,000 at noon, you would have simply lost what you paid for the binary option. In the first case, you would have been down $46. In the second scenario, you would have been down $230.
What many people find attractive about binary options is the All-or-Nothing aspect. If you get the trade right, you make money (normally a significant percentage). If you get it wrong, you lose money (knowing exactly what the risk is all the while).
There isn’t any gray area with this type of trade, which provides a sense of simplicity that can be a nice for all traders—veterans and novices alike.
If you think binary options might be good to try, I strongly recommend beginning with a demo account to get the feel for it before putting real cash on the line.
