I have been investing in a wide variety of opportunities for around 3 years now and it is fair to say that I ave learned an incredible amount since when I first began. Each year it seems there is something new to invest in, or a new way of doing things and for me last year was all about binary options. My broker is a binary options expert and Jean-Yves Sireau was the person who encouraged me to get involved with this method of investment, and I am very happy that he did!
Prior to my conversation with my broker about binary options, I had absolutely no idea what they were but they have proved to be very profitable for me over the last 12 months. I wanted therefore to share some of the knowledge that I have about this investment approach, so that you too can be better informed on what binary options are.
In a Nutshell
The easiest way for me to explain binary options is that you are betting on whether the market will pick up or drop off in terms of its value. You can select a time frame for your bet, and the probabilities will determine what kind of pay out you receive. The best way of empaling this is with an example: Let’s say that your analysis says that the S&P 500 will move above 1200, but you’re not sure how much by, the current price is 1200 so you buy a call option (binary) that it will move above 1200 in the next four hours. When the four hours are up, if the price is higher than what you have said, you will gain, if it is below, you will lose your investment.
How Can I Make Money?
As with any form of investment, there are many strategies which people use with binary options investment. Some will invest heavily on one or two options where as other may spread their bet out across a variety of options and markets, at varying times in order to cover their bets. The one thing which you must always remember if you do plan on getting involved with binary options, is that you will live and die by your analysis. Unlike with longer term investments, binary options leaves no room for error and if you are wrong, you lose. Make sure that you have invested the time into understanding the market and gauging where you think it will go, before you part with a single cent of your cash.
How to do it?
You can invest in binary options via a broker, or you can do so directly online. Whilst rules may change from broker to broker, there are usually no limits in terms how much you can invest in a binary option. Ask before investing about the broker’s terms and conditions as these too vary greatly. Start off small and then build up from there as you gain more experience.