Anonymous asked in Business & FinanceInvesting · 7 years ago

What are Binary Options?

22 Answers

  • 7 years ago
    Favorite Answer

    Binary Options are a relatively new way to trade options. You trade on the price movement of the underlying asset deciding if it will rise (CALL) or fall (PUT).

    Some misinformed people say this is a scam or just gambling and while all investments can be a gamble if you have a sound strategy in place or have some knowledge of the assets you can increase your chances of success. You will not win every trade but it is still possible to earn a living trading binary options and many people do.

    I would offer the following advice if you are serious about starting to trade:

    - Become familiar with Binary Options and how they work (there is quite a bit of information available and various ebooks that you can download)

    - Sign up with a recommended broker - there are many reputable brokers out there such as LBinary, 24Options, Banc de Binary, CitiTrader, Traderush, Opteck etc and contrary to many answers on the subject here many are actually regulated.

    - Ask to use their demo system to practice before trading with your own cash. This will give you a chance to get to know the platform and try out your trading strategies.

    - Use strategies and read up on your asset and watch for factors that may effect it's price and keep an eye on an economic calendar to see if there are any upcoming events that may cause the asset to rise or fall in price.

    - Only invest a small percentage of your total capital in any one trade as you will not win every trade. I usually go with 5%.

    Many of the previous answers on this subject are from people who haven't traded or who didn't have a strategy when they did trade and this is probably why they say it is pure gambling and it is pure gambling if you trade that way as you are just guessing which way the asset will move.

    There are information sources available with simple and straightforward beginner information that you should check out such as The Binary Options Guide referenced below.

    Good luck if you start trading and have fun!

    • ...Show all comments
    • Jerry
      Lv 7
      3 years agoReport

      optionsbee is the same SCAM link usually posted by "Dominic". Read the SEC warning instead of promotional lies.

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  • 4 years ago

    Binary Options are a way that anyone can profit from the movement in value of a large and dynamic range of commodities, assets, stocks and shares or even Forex.

    The reason why these types of financial trades have become so hugely popular is that traders have to make just one of two possible decisions when placing them, that being yes or no decision which in Binary Options trading are known as Put or Call trades.

    There is no requirement to actually purchase for example gold bullion if you wish to place a Binary Options trade on the value of gold, you simply need to decide whether the value of gold will rise in value or fall in value over any given time period.

    One major advantage of placing Binary Options trades is that you will find a range of different expiry times are available which can be as short as just 60 seconds or as long as one month.

    If you are new to the world of Binary Options trading then below is our 10 step guide which will enlighten you on all there is to know about placing Binary Options trades at any of our featured Brokers.

    We are more than confident that once you read through the following guide you will be then able to place a large and very varied range of Binary Options trades online either via a no risk demo trading account or as a real money trader.

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  • 4 years ago

    Binary options are different from stocks, bonds and mutual funds; even so, they are quite simple to understand. Instead of investing in a particular company (i.e. Microsoft, Google, Facebook, Exxon Mobile, etc.) a person who invests in binary options is essentially betting on price fluctuations in the price of particular options. Those who bet correctly will win a predetermined sum of money; those who take the wrong position will lose their entire investment.

    Binary option investors can bet that the value of a certain investment will either go up or down. What is more, they can also set a time range for the stock to reach a certain high or low; this time range could be as short as a single minute or as long as a full day or even an entire week

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  • 5 years ago

    What are Binary Options ?

    Binary Options are a simple way to trade the price fluctuations in the global markets. A trader decides the movement of a particular asset and places a trade in that particular direction. If the trader analyses that the market will go up he will invest in a CALL option for a set expiry and vice versa. If the trader’s analysis is right and at the expiry the price is above the strike price for a CALL the trader successfully wins the trade. A win will give a return of 70-85% on the investment. A binary option investment can vary from a very short period to a long period of time. The type of binary option investments are : Classic Options, Turbo Options, Touch/No Touch, One Touch.

    You can find all the details here:

    • David4 years agoReport


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  • 4 years ago

    Binary option is not gambling Indeed, What most people don’t understand is that binary does not mean 50%-50% chance. Binary only means that at the maturity of the option, only two alternatives are available, either you earn the return on your invested amount, either you loose your invested amount (you may eventually recover a return on loss or refund). Investing on a binary option has nothing to do with betting on casino roulette where the probability of red number is truly 50% (it is even less than 50% if you take into account the 0 number). This is called gambling. It is the same as sports betting when you get a return that is propositional to the odds of a team winning against another one. This is the pure definition of gambling.

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  • 4 years ago

    The term binary option is used to describe an estimation of the performance of assets during a given time. The word binary describes that there are two different dimensions. Generally speaking, in the finance sector, a binary option's payoff can only have two different outcomes which are either a fixed monetary amount or in the worst case nothing at all. Since 2008, options trading have revolutionized the stock market allowing individuals to personally trade the money they choose to invest. Accordingly, the investors financially acquire the assets. A financial asset is the term given to an intangible asset whose value is derived from a written agreement claim.

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  • 4 years ago

    Binary options are the simplest form of speculating on the future price of a financial or commodity asset. So simple in fact that some cynics consider it betting and therefore a scam.

    The simplest offering of binary options is the at-the-money call and put, most commonly referred to as the Over and Under , where at any time one can pull the trigger and say the asset price is going to be above (Over) or below (Under) the current price at the expiry of the option.

    Unfortunately some of the providers offer such low returns, e.g. 70%, that this has contributed to binary options getting a bad rap. If a broker is not offering 85% or more go elsewhere.

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  • 4 years ago

    A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all.

    While binary options are used in a theoretical framework as the building block for asset pricing and financial derivatives (a binary option maps to the cumulative distribution function of the risk-neutral distribution [1][2]), they have been exploited by fraudulent operations as many binary option outlets (outside regulated markets) have been shown to be scams.

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  • 4 years ago

    Binary Options are a new and easier way of trading the stock markets. The basics are the same, the main difference is that you only need to predict the direction of the trade. It does not matter if you are correct by 1 pip or a 1000 pips, you still win. If your trade goes in the opposite direction to your prediction you lose your stake. Its as simple as that, there are obviously a lot of techniques and strategies that can be learnt to assist with your trading, but like anything in life its always best to take your time, learn the skills first.

    It is easy to start trading, all you need to do is open a binary options broker account and you are ready to start. I would advise starting with a demo account and learn the skills of trading before using real money.

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  • 4 years ago

    Binary options are different from traditional options.Binary options are a simple way to trade price fluctuations in multiple global markets, but a trader needs to understand the risks and rewards.If you want to know a good strategy for trading binary option

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