Binary Options, also known as Digital Options, all-or-nothing options, or Fixed Return Options (FROs), is considered to be one of the fastest growing simplified trading products available today. It is the latest financial tool to sweep the global markets and allow traders of all backgrounds to trade online. Whether you are looking for short term or long term options, binary options can help traders get high payouts within short trading periods, which is why it has gained global popularity among financial traders.
The binary option is in essence nothing more than a prediction on which way the price of a stock, commodity, index or foreign currency will move by a designated expiration time. With binary options, you never purchase or own the asset as you’re only predicting the direction that the asset will go. There are only two possible outcomes and the price of the asset does not matter. As far as you’re concerned, all that matters is if your prediction was correct or incorrect.
There are many platforms available through which to trade binary options, but one of the best is Magnum Options. Magnum Options offers over 150 tradable assets. Traders are offered indices (e.g. NASDAQ), stocks (e.g. IBM), commodities (e.g. Oil) or currency pairs (e.g. EUR/USD) to choose from. A trader can choose multiple assets to trade at the same time.
How to trade via MagnumOptions.com
- Choose the asset you wish to trade (you can view all tradable assets by clicking on the asset index)
- Click on “CALL” if you believe the asset price will rise by the expiry time, or “PUT” if you believe that the price will fall by the expiry time
- Enter the amount you wish to invest and click apply
- Collect your profit (if your trade expires “in the money”)
Binary Options for anyone.
Anyone trading binary options, regardless of skill level, has access to information about stocks and other general financial news. Accessing this information, and understanding price movements with particular stocks, can help a trader determine the direction the price of the stock will move.
Advantages of Trading Binary Options
Controlled Risk — The percentage of risk and reward are known from the moment you place a trade.
Simplicity — You only need a sense of direction i.e. ‘Will Google stock price increase/decrease by expiry?’ All a trader needs to do is click the CALL/PUT buttons to make this decision.
Attractiveness — For a profitable trade to take place there is only the need for the price to close “in-the-money” and the winning trade will receive the entire payoff, even if was ‘right’ by a single pip.
Hedging opportunities — A safer option to take if a trader has an open position elsewhere in currency, stocks etc. Utilizing a binary option can eliminate a further loss elsewhere.
Punctuality — Binary options assets are available at all different time frames, allowing traders to trade almost 24/7. There is always an expiration time nearing a close, which constantly yields new opportunities for binary trade.
Open your trading account here.
Model and earnings: Results are contingent on choosing the correct direction of an asset’s price, from the given strike price, by the selected expiry period. Once a trade is initiated, traders receive a confirmation screen showing the asset, strike price, the chosen direction (CALL or PUT), and the investment amount. When prompted by this screen, trades will initiate in 3 seconds unless the Trader presses the cancel button. MagnumOptions.com offers the fastest option expires available to the public and transactions can be as fast as `15 minutes in regular binary options, and as fast as 60 seconds in the 60 second platform. Although the risk when trading binary options is fixed for each individual trade, the trades are live and it is possible to lose an initial investment, particularly if a trader chooses to place his entire investment to a single live trade. It is highly recommended that traders choose a proper money management strategy which limits the total consecutive trades or total outstanding investment.