Thursday, February 12, 2015

Binary options - Simplified version of trading forex market....

Binary options are an amazing way to earn extra income, but what are they?
Those are forecasts on how the market price of a specific asset will perform during a certain time period.  For experienced traders and investors, this method is very familiar, as all investments are structured around this nature.  When someone invests in the markets by buying stocks they are essentially stating that, “I believe that this company will succeed and the stock price will rise and earn me money.”  When buying stocks in forex market, investors are tied to purchasing the stock at the per share market price, which when purchasing a large amount of stock can be extremely expensive and prohibitive to people who do not have the funds to invest.  Binary options remove the market price requirement of assets and instead replace the investment amount with an amount of your choosing.  This means, if you believe that Apple’s stock price will rise in the next fifteen minutes, you can invest $50 instead of buying one share of stock for $650.

The return on investment ranges from 70% – 89% which means that you can earn a significant return on every investment.  Let’s return to the example of purchasing Apple stock.  If you were to buy one share of Apple stock it would cost you about $650 (not including broker’s fees) and if the stock rose over the next few months to $700 per share, you would have made $50.  Now if you opened 13 binary options of $50 predicting that Apple stock would rise over the next fifteen minutes you would earn up to 89% on each binary option, for a total of $94.50.  That means in just fifteen minutes you could earn a total $1,228.50 on the same amount that you would have spent on one share of Apple.

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