Binary Options: Is it possible to make money using this financial instrument and what do you need for it?
Every beginner investor or trader asks himself an urgent question: What financial instruments is it better to use to make profit with minimum risk? Here comes a great variety of dealing centers, direct brokers and investment companies, offering the opportunity to earn money in the financial markets. Binary options brokersare also resent in this list. Is it possible to make money on binary options? How effective they are along with other financial instruments? Let’s try to find out.
Is it possible to make money on binary options?
Binary Options are contractswhichpredicta financial asset price changes (commodity, currency pairs, metals, etc.) for a fixed period of time. In other words, when you open a deal, you predict itsprice rise or fall, and if the prediction turns out to be successful, the income may vary from 50 to 90 per cent of the transaction value depending on the asset. When a trader opens a deal, healways knows how much revenue he will receive since profit and loss are always fixed. Thus, it becomes clear that any open transactions is a good opportunity to get a high income.
Binary options attracts not only with high profits, but also with a real opportunity to invest in practical any financial assets as much money as you want it.
Despite the fact that the classical conservative trade followers on the stock and forex market are very skeptical about the possibility of earning money on binary options, the popularity of this financial instrument continues to growrelentlessly in proportion to the number of people who believed that one can and should make good profits on options.
The advantages of binary options trading
Let’s consider a simple example:
If we purchase 10 shares of one of the leading companies in the beginning of the month totaling $ 1,000, with an increase in their prices by 5%, that will bring us $50 profit. Purchasing 10 options worth $100 each, and successfully operated a 30-minute deal will allow us to earn 90% of our investment, or $900.
Most of those who have ever thought about whether it is possible to make money on binary options, and tried trading on this instrument, came to a conclusion that it is not so difficult. High profits, and undeniable attractiveness of binary options laysin the short-term fulfilment and high sensitivity of the financial instrument to the market liquidity.
Where to start?
Now, when we found out that we can make good money on binary options, let’s find out how to minimize risks. It is no secret that high-yield instruments carry a danger of a high level of loss. Every self-respecting trader or investor should know the following rules:
entrust your money only to proven and reliable brokers;
do not accumulate your own greed;
use your broker trading signals;
study the market and follow global financial news;
differentiate your investment portfolio.
Remember, the risks were and always will be here, and your and your broker’s main problem is to minimize them as much as possible.
Now consider each rule separately.
Choosing a reliable binary options broker
Reliable financial partner is a key factor when choosing a broker. Choosing a broker for further cooperation, examine him carefully, check out his licenses and controls, liquidity provider, timing and methods of input-output funds. Also you need to find out whether your broker is not in the international blacklist of unscrupulous brokers, read the reviews about it on the Internet. In the latter case, you should note that absence of bad reviews is rather a confirmation that you are dealing with a fake broker.
How to make profit on binary optionseffectively?
When we find a reliable broker and want to start working, he will offer you to use his analysis and trading signals. A good honest broker has very high signals efficiency, and if you use them, you can have a good profit in a short time. In addition, some brokers, such as, prime-signals.com provides its customers with not only free, but also fully automated trading signals, which greatly facilitates beginner traders.
You should not neglect the studies that some brokers provide their clients withfor free. Knowledge of financial basics will help you to better navigate the world of financial news and sometimes act independently without fear of making a mistake.
Many successful traders know that is not so difficult to start earning money, as not losing earnings in the pursuit of even greater profits. This syndrome is called “greed accumulation”. When a trader received his first significant income, he immediately tends to multiply it, increasing the number of transactions. Market will never forgives this one of the biggest mistakes.
Conclusion: binary options can make you money, if you follow broker’s recommendations, monitor global economic news and learn not to lose your head from the first financial success.
How much you can really make trading on the binary options per year?
Every investor or trader predicts his potential income from a trade or investment activity for given period of time. Usually it takes 12 months, since financial markets are extremely unstable, even with almost all trade regulations, risks and losses are inevitable. However, if you follow all the above stated rules and principles, you can increase the size of your investment portfolio by 100-150%, which is almost ten times higher than the profitability of trading in the stock markets, and at least twice as effective as the classic trading in the Forex market.
Thus, the answer to the question whether it is possible to make money trading in binary options, should be entirely positive. Yes, you can. You can and you should. Go ahead, Gentlemen! May the favorable trend be with you!