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A Simple Investment

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Binary Options Make Investing Simpler

It is no secret that there is a lot of money to be made in the stock market. People are also making huge sums of money in speculative markets like currencies, commodities, and options. All of this seems very appealing to people who have to work hard just to get by. The thing is, while it may not be manual labor, being able to turn a profit with these types of investments is hard work as well. It might seem simple, but it requires a lot of research, a lot of money, and the expertise to know how to make such transactions. It isn't as simple as picking a stock that stands a good chance of gaining value, or being able to predict when crude oil will take a dive. Or is it? Now, there is a way that you can make a simple investment that only involves knowing the short term trend of a particular asset. You don't need to know the long term stability, or profitability. You don't need to invest a fortune to see reasonable returns, and you don't need to wait months, or years to see the benefits. This "new" tool is called binary options.

How Does It Work?

Basically you are speculating on the short term trend of an asset. If you think Crude Oil is going to jump in price within the next day, you can easily make a quick investment. If you think the price of a share of Apple is going to lose value within an hour, you can very easily profit on that knowledge. Binary options are an option derivative, so they share some characteristics with "vanilla" stock options, but they are much more elementary. For instance, you are going to profit a set amount regardless of how much crude oil goes up, or Apple drops. Your only interest is in correctly analyzing what direction that asset is headed in, in the short term. You can invest as much, or little, as you like and you will gain, or lose, the same percentage.

How Much Can I Expect To Gain, Or Lose?

The simplicity of binary options makes it very easy to determine what you stand to gain, or lose. You even have all of this knowledge before you put any money at risk. Binary options are very short term. They can be as little as one hour, or as much as one week in duration. Just like vanilla options, you can buy a "call", or a "put". If your option expires "in the money" the profits will be in the range of 65-81%. If your option expires "out of the money" you will lose 85-100% of your investment. Lets look at a fictitious example.

Lets say you bought a $100 one day call option on Apple Stock, at a strike price of $202.35, that pays 71%.
If Apple is valued above $202.35 at the expiration, you would receive $171.
If Apple is valued below $202.35 at the expiration, you would receive $0-15 (depends on broker).

The opposite would be true if you bought a $100 one day put option on Apple, at the same strike price, and payoff.
If Apple is valued below $202.35 at the expiration, you would receive $171.
If Apple is valued above $202.35 at expiration, you would receive $0-15.

That is what makes binary options such a simple investment.

Other Resources

For further information, or to start investing, check out these resources.

Binary Options Brokers

Common Terms Used In Binary Options

Binary Options Trading Strategy

Graphic Example

Updated Binary Options Information

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by mikejyoung

mikejyoung

I march to a different beat. I refuse to take the beaten path. I make my own way.

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