What Are Binary Options
Have you encountered an advertisement about binary options that promised to make you a lot of cash, but you don’t know what they are? If you are asking yourself, “what are binary options?” then the answer is simple - it’s a way to make money betting on the outcome of how a stock will change in a certain time period.
The two options are PUT which means you predict the stock will go down, and CALL which means you predict the stock will go up.
Length Of Time
One of the key decisions that you need to make is the length of time at which you decide on the movement of a stock. Getting this right takes a lot of practice. Most experienced stock market analysts advise to set a time of 30 minutes to 4 hours.
Adrenaline junkies might opt for 5 minutes, because they want to see results fast and then make another bet. The problem with that is 5 minutes is too short to make a solid guess on which direction it will go in. You’ll be basically gambling your money away.
What Are Binary Options Traded On?
The greatest asset of trading binary options is the amount of flexibility you are given. Most platforms will allow you to trade anything you want which includes shares of Fortune 500 companies, currencies and precious metals. The more you diversify your trading portfolio the better your chances of making money in the long run.
Now that you know what are binary options then why not give trading a shot for yourself? Read the reviews of the many platforms you see on our website. Open up a demo account where you get to learn the ropes before committing real money. Try out a few of them because you never know which platform is the ideal one for you.